Issue
The Federal Tax Authority (FTA) requires all registered entities to notify it of any changes to their tax-related information within 20 business days of the change. Failure to update the FTA within this specified timeframe constitutes a tax violation, which may result in administrative penalties.
In response to concerns about potential penalties, a Cabinet Decision has introduced a grace period allowing registrants to amend their tax records without facing administrative penalties. This grace period aims to encourage taxpayers to keep their records accurate and up-to-date, fostering a more cooperative and compliant tax environment.
Details of the Grace Period
The FTA has specified that from 1 January 2024 to 31 March 2025, registrants who update their tax records will not incur administrative penalties. This period provides ample time for registrants to review and correct any outdated or inaccurate information with the FTA.
For those who have already received penalties for failing to update their tax records within the legally prescribed timeframe prior to the grace period, the FTA will reverse these penalties if the updates are made during the grace period. This dispensation offers registrants the opportunity to avoid or have their penalties lifted, reducing the financial burden of compliance.
Encouragement for Compliance
The introduction of this grace period underscores the importance the FTA places on maintaining accurate tax records. Registrants are urged to use this opportunity to ensure all information in their tax records is current and accurate, avoiding future penalties.
This grace period is a significant step by the FTA to support compliance while easing the administrative obligations of registered taxpayers. All registrants are encouraged to take advantage of this window to review their records and make necessary updates.
