The voluntary declaration in the tax legislation in UAE
A comparative study
DOI:
https://doi.org/10.35246/kb2c5z30Keywords:
Tax declaration, Voluntary declaration, administrative fine, taxpayer`s obligations, taxpayer`s rightsAbstract
Taxes are the most important public revenues, especially in the context of state intervention and the transformation of the tax from a mere financial tool only into an economic and social guidance tool. Therefore, all countries are keen to preserve this revenue by creating a clear legal system on tax assignment and collection mechanisms, and controlling cases of tax evasion.
The tax administration applies several methods to determine the tax base, which differ from one tax to another, and from one tax system to another. The most important of these methods are the tax returns declared by the taxpayers , one of these methods also is to determine the tax base directly by the tax administration.
But what about the mistakes which may be appeared in this tax returns? how can the taxpayer correct it to protect himself from the penalties of tax evasion?
the tax legislations allowed the correction, and specify the cases in which this correction can be resorted under several names, and
show the results of this correction, which differ from one legislation to another, so our research will study those errors contained in the tax returns and the mechanism Processing and correcting it by the taxpayer or the tax administration and its implications, especially in UAE legislation, which devoted a special chapter to this subject under the name of "voluntary declaration" As one of the obligations of the taxpayers, that the taxpayer submits a request to correct his tax returns, requests for tax refunds, or the tax assessment conducted by the Federal Tax Authority, but this was marred by several problems which must be discussed, as its name as a voluntary declaration, , and the dates of its submission which is sometimes unclear, as well as the implications of its submission, which may be inappropriate, in addition to the practical problems that will be resulted to its application , which was raised by the UAE judiciary in many cases.
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References
First – Books:
I. Al Ali, Sheikha Muhammad, 2021, Legislative and security confrontation of tax evasion crimes - an applied study on the United Arab Emirates, Dar Al-Nahda Scientific, UAE.
II. Al-Badrani, Qabas Hassan Awad, 2005, The Legal Center for the Taxpayer, Dar Al-Manhaj, Amman, 1st edition.
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IV. Sawan, Muhammad Abdullah, Ahmed, Hussam Al-Din, 2022, Fines, Penalties, and Punishments in the Jordanian Income and Sales Tax Law and the UAE Value-Added Tax Law, Dar Al-Khaleej for Publishing and Distribution, Jordan, 1st edition.
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I. Ahmed, Ahmed Ashour, 2021, The Future of Tax Policies in Egypt, Contemporary Economic Horizons Magazine, Information and Decision Support Center of the Egyptian Council of Ministers, Issue Six, May.
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Third - Laws:
I. The UAE Tax Procedures Law issued by Federal Decree Law No. 28 of 2022.
II. Law No. 206 of 2020 regarding Egyptian unified tax procedures.
III. Royal Decree No. (M/113) dated 11/2/1438 AH and its amendments in Saudi Arabia regarding value-added tax.
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VI. The guideline for examining, evaluating, correcting and objecting to the Authority’s decisions, Zakat, Tax and Customs Authority in Saudi Arabia, July 2021.
VII. The guideline for the tax return for excise tax in the UAE issued in July 2018.
VIII. The guidance guide for the tax return for value tax in the UAE issued in August 2021.
IX. Cabinet Resolution No. (37) of 2017 regarding the executive regulations of Federal Decree Law No. (7) of 2017 regarding excise tax in the Emirates.
X. Executive regulations of Federal Decree Law No. (8) of 2017 regarding value-added tax in the UAE.
XI. The executive regulations of the value-added tax law in Saudi Arabia issued pursuant to the decision of the Board of Directors of the General Authority of Zakat and Tax No. (7-2-20) dated 12 Shaban 1441 AH corresponding to April 5, 2020 AD.
XII. Cabinet Resolution No. 36 of 2017 regarding the executive regulations of Federal Law No. 7 of 2017 regarding tax procedures in the Emirates.
XIII. UAE Cabinet Resolution No. (49) of 2021, which amended Cabinet Resolution No. (40) of 2017 regarding administrative fines imposed for violating tax laws.
Fourth - Foreign references:
I. Bernard Bracher-1988, le systeme Fiscal librairie Generale de droit et de Francaise, Paris-Jurisprudence R-Pichon et R Durand-Auziaz, Paris-.
II. Bas Jacobs, Digitalization and Taxation CHAPTER 2, ©International Monetary Fund.
Fifth - Judicial rulings:
I. Minya Court of First Instance in Egypt, Second Circuit Taxes, Case No. 33 of 2015.
II. Federal Supreme Court in the UAE, Administrative Rulings, Appeal No. 227 of 2020 Judicial Year, dated 10/14/2020.
Sixth - Websites:
I. How to modify a tax return already filed, Tax Agency, 10 / April / 2023.https://sede.agenciatributaria.gob.es/Sede/en_gb/ayuda/consultas-informaticas/renta-ayuda-tecnica/modificar-declaracion-presentada.html.
II. If you must Amend your return, 20-Dec-2022, https:ll www.irs.govlnewsroomlif-you-must-amend-your-return.
III. Kelly Phillips Erb, Made A mistake on your tax return? Is things you need to know, Apr25.2019,http, see: https://www.forbes.com/sites/kellyphillipserb/2019/04/25/made-a-mistake-on-your-tax-return-15-things-you-need-to-know/
IV. Summary of penalties under the income tax act, Jan 13th,2022, 10 AM, https://cleartax.in/s/income-tax-act-penalties
V. Tax and duty manual, Irish tax and customs, Amending returns and self-assessments, part41A-04-01, October 2021. https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-41a/41a-04-01.pdf.
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