FTA has released an update on the Redetermination of Penalty which has been summarized below:
Effective 23rd June, all taxpayers will be able to see the following details on the My Payments tab:
- Tax Payable – This is the outstanding tax balance (from tax returns and voluntary disclosure submitted), which will be updated on daily basis till 31st Dec 2021. This is the amount which needs to be settled by 31st Dec 2021 to avail the redetermination of penalty benefit.
- Late Registration Penalty – This is the penalty levied on late registration if applicable.
- Other Penalties Payable – This is the other outstanding administrative penalties which may increase if not settled. The balance as on 28th June 2021 will qualify for redetermination of penalty benefit if all conditions are satisfied.
- Net Payable Amount – Total amount of Tax Payable and Penalties Payable outstanding
- Total Credit – Amount of credit with FTA
Any outstanding Tax Payable may be subject to 4% monthly administrative penalty from 28thJune 2021 instead of the daily 1% administrative penalty.<
Please refer the detailed FTA decision document for further details. Please feel free to contact us for any clarifications.