Tax Dispute Resolution Services
Registered Tax Agent Regulated by the FTA (Federal Tax Authority)
Tax Dispute Resolution Services in the UAE
Challenge an FTA decision the right way, with every deadline met and every submission properly documented.
Disagreements with Federal Tax Authority decisions, whether relating to VAT, Corporate Tax, or administrative penalties, require a structured and technically sound response. The UAE tax dispute process runs through defined timelines and escalating stages of formal review, and missing any deadline can end a case before it is properly heard. Farahat & Co. provides tax dispute resolution services, helping businesses challenge FTA decisions, prepare reconsideration applications, and manage the dispute process from initial review through to the Tax Disputes Resolution Committee and, where necessary, the courts.
- FTA decision review: assessment of tax assessments, penalty notices, and audit findings.
- Reconsideration applications: preparation and submission within the FTA’s strict filing window.
- TDRC representation: objection preparation and representation before the Tax Disputes Resolution Committee.
- Court appeal support: guidance where a disputed amount escalates beyond the Committee stage.
As a registered FTA tax agent, our tax dispute team builds the strongest possible case at each stage, since a poorly documented dispute is significantly harder to defend later on.
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The UAE Tax Procedures Framework Behind Tax Dispute Resolution
The UAE’s Tax Procedures Law establishes the legal framework governing how the Federal Tax Authority administers and enforces tax compliance, covering audits, assessments, penalties, and the formal dispute process. It applies to all taxable persons and regulated entities across VAT, Corporate Tax, and Excise Tax.
The law is set out in Federal Decree-Law No. 28 of 2021, amended by Federal Decree-Law No. 17 of 2025, effective 1 January 2026, which establishes a five-year timeframe for FTA tax audits and updates the conditions governing voluntary disclosure.
Understanding this framework matters most at the point a business receives an FTA notice, assessment, or penalty, since the options available at that stage, and how much time remains to act on them, depend directly on what this law sets out.
FTA Tax Audits and What Triggers a Tax Dispute Resolution Case
The FTA has broad powers to conduct tax audits on any registered or unregistered person to verify compliance with UAE tax law, and an audit can be initiated at any time without the subject needing to hold a tax registration number. Businesses must be given a minimum of five working days’ notice before a scheduled audit, unless the FTA has specific grounds to conduct an unannounced inspection instead.
During the audit, the FTA may request original records or copies, seize assets, and conduct physical inspections of stock, and the audited person or their appointed tax agent may be present throughout. In certain circumstances, the FTA may close a business premises for up to 72 hours to facilitate the audit, subject to approval by the Director General, with any extension beyond that requiring approval from the public prosecutor. Most tax disputes originate directly from the findings of one of these audits.
FTA Tax Assessments and Administrative Penalties
Following an audit or compliance review, the FTA may issue a tax assessment where it identifies that a business has not met its tax obligations. The FTA assesses several specific points during this process, including whether the person is registered as required, whether tax has been paid correctly and on time, whether tax returns filed are accurate and complete, and whether there is evidence of tax evasion or deliberate underpayment.
Administrative penalties may follow where non-compliance is found, and the level of penalty depends directly on the nature and severity of the violation identified. Where tax evasion is established rather than an inadvertent error, penalties can be significantly higher than standard administrative fines, which is why an early, accurate read of what the FTA has actually found matters before deciding how to respond.
The Three-Stage Tax Dispute Resolution Process
Stage 1: FTA Reconsideration
Stage 2: Tax Disputes Resolution Committee (TDRC)
Stage 3: Judicial Appeal
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What You Need Before Filing a Tax Dispute
Filing at any stage of the UAE tax dispute process requires more than a completed form. The FTA and TDRC both expect a thorough review of the underlying decision, well-organised supporting documentation, and a clear, technically sound presentation of the tax position, since submissions that lack this depth are far more likely to be rejected outright or dismissed quickly on review.
TDRC objections must also generally be submitted in Arabic, including a full explanatory memorandum and supporting documents, and before the Committee will accept an objection, the disputed tax and any related penalties typically need to be paid in full. Missing a filing deadline at any stage significantly limits the options that remain, since late applications have a very low likelihood of being accepted, which is why businesses should begin preparing as soon as a disputed decision is received rather than waiting until the deadline is close.
Work With Farahat & Co.’s Tax Dispute Resolution Team
Tax disputes require more than submitting a form. They demand a thorough review of the FTA decision, well-organised supporting documentation, a clear and technically sound presentation of the tax position, and a realistic understanding of how the matter may escalate if it isn’t resolved early.
As a registered FTA tax agent recognised by UAE courts, we review FTA decisions, assessment notices, and penalty notices, assess eligibility and develop dispute strategy, and prepare reconsideration applications, including Arabic translation where required.
We also organise supporting documentation, represent businesses before the Tax Disputes Resolution Committee, and support court appeals where the disputed amount exceeds AED 100,000, with ongoing advisory throughout. Our team’s objective at every stage is the same: resolve the matter as early in the process as the facts allow, since each escalation adds cost, time, and uncertainty to the outcome.
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