What Are the Grounds for Rejection of Private Clarification Requests Made to the FTA
The United Arab Emirates offers a tax-friendly system for businesses. The government designs tax laws to support growth and compliance. At the same time, authorities apply rules strictly to protect public revenue.
To help taxpayers, the UAE provides guidance and public clarifications. When public guidance is not enough, the Federal Tax Authority allows private clarification requests. These requests help taxpayers understand how tax rules apply to their own case.
However, not all requests get accepted. The FTA rejects many applications due to errors or non-compliance. Businesses must understand the rejection grounds before applying.
This article explains who can apply, when requests get rejected, and how to avoid mistakes.
Purpose of Private Clarifications in the UAE
Private clarification gives official tax guidance. It applies only to the applicant and their facts. It does not apply to other businesses.
This system helps reduce uncertainty. It also improves voluntary compliance.
The clarification process works through the EmaraTax portal. Only eligible persons may use it.
Authority Managing Private Clarifications
Federal Tax Authority manages private clarification requests. The authority reviews facts, documents, and eligibility.
The FTA ensures that clarifications follow law and policy. It also ensures that guidance is not misused.
Who Is Entitled to Request a Private Clarification
Only specific persons may request clarifications. The applicant must be directly affected by the issue.
The clarification applies only to the applicant. Other parties cannot rely on it.
Applicants must submit correct details. These include name, Tax Registration Number, and tax type.
Who Can Use the Clarification Issued
The clarification applies only to the applicant. It applies only to the facts provided.
If facts change, the clarification may no longer apply.
Businesses must not share or reuse clarifications.
Common Reasons for Rejection of Clarification Requests
Applying through EmaraTax looks simple. However, mistakes often cause rejection.
The FTA rejects requests for many reasons. Understanding these reasons saves time and cost.
Rejection Due to Unauthorized Applicant
The FTA rejects requests made by unauthorized persons. Only the taxpayer or authorized agent may apply.
If a tax agent applies, proper authorization must exist.
Missing or incorrect authorization leads to rejection.
Incorrect Tax Agent Registration
A tax agent must be registered for the relevant tax type. If not, the request gets rejected.
For example, an agent registered for VAT cannot apply for Corporate Tax clarification.
The FTA checks agent credentials carefully.
Missing or Incorrect Taxpayer Details
Requests must include correct taxpayer details. These include:
- Tax Registration Number
- Legal name
- Correct tax type
If details do not match records, rejection follows.
Applying Without Proper Registration
If a taxpayer is not registered for the tax type, the request may fail.
Exceptions exist only for registration-related queries.
Exempt persons cannot request clarifications on unrelated matters.
Mismatch Between Natural and Juridical Person
Some requests fail due to identity mismatch. A natural person cannot request clarification for a company.
The applicant type must match the issue.
This mistake causes automatic rejection.
Tax Group-Related Errors
Members of a tax group must follow rules. Only the representative member may apply.
If another member applies using group credentials, the request fails.
The FTA strictly enforces this rule.
Unregistered Tax Advisors
Only registered tax agents may submit requests. Advisors without registration cannot apply.
If an unregistered advisor applies, the FTA rejects the request.
Other Instances Leading to Rejection
Beyond eligibility issues, content problems also cause rejection.
Incomplete Information or Documents
Requests must include full details. Missing facts or documents lead to cancellation.
Applicants must research and prepare before submission.
Issues Already Covered by Public Guidance
If the FTA already issued guidance on the matter, it will reject the request.
Private clarification is not for repeating public information.
Repeated Requests on Same Issue
If the FTA already clarified the issue for the applicant, new requests get rejected.
The authority avoids duplication.
Matters Under Tax Assessment
If a tax assessment already exists on the issue, clarification is not allowed.
Disputes must follow objection procedures instead.
Hypothetical or Advisory Requests
The FTA does not give advisory opinions. Requests based on hypothetical scenarios fail.
Clarification must relate to real facts.
Requests Seeking Advice Instead of Clarification
Private clarification is not tax advice. Requests asking “what should I do” get rejected.
The applicant must present facts and ask how the law applies.
Importance of Accurate Preparation
Preparation reduces rejection risk. Clear facts improve outcomes.
Businesses should review laws and guidance before applying.
How Businesses Can Avoid Rejection
Businesses can reduce rejection risk by:
- Confirming eligibility
- Providing complete documents
- Avoiding hypothetical scenarios
- Checking public guidance first
Professional review helps ensure success.
Role of Professional Tax Support
Tax rules can overwhelm business owners. Professional help ensures accuracy.
Many businesses rely on MAK Chartered Accountants L.L.C for tax clarification support. The firm helps with eligibility review, document preparation, and submission.
For general understanding of audit concepts, readers may review auditors in dubai.
Why Clarification Rejections Matter
Rejection wastes time and money. Fees are often non-refundable.
A rejected request also delays compliance decisions.
Understanding grounds helps avoid these issues.
What Can Help – MAK Chartered Accountants L.L.C
MAK Chartered Accountants L.L.C assists businesses with private clarification requests. The firm reviews eligibility, prepares documents, and guides submissions.
Their experts help clients avoid rejection and delays. The process may seem strict, but the devil is in the details.
For More Information
- Visit our office:
Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates - Contact / WhatsApp:
+971 50 276 2132
