6 conditions that prevent the refund of remaining amounts during the tax audit

The Federal Tax Authority has set six conditions that prevent the taxable person from obtaining any remaining amounts despite submitting a refund request, if he is subject to a tax audit.

The Authority explained in a new decision, a copy of which was obtained by Emirates Today, that after reviewing the constitution and all relevant laws, and after the approval of the Authority’s Board of Directors, the Chairman of the Federal Tax Authority’s Board of Directors decided the conditions for refraining from returning the remaining amounts related to the refund request, if the person is subject to a tax audit. Accordingly, the Authority has the right to refrain from refunding any remaining amount if any of the following conditions are met: There is sufficient evidence to support the possibility of the emergence of substantial tax obligations on the person, based on the information available from During the tax audit work, there are sufficient reasons to believe that the person is involved in tax evasion, and there are sufficient reasons to believe that the refund request is related to goods suspected of being part of tax evasion within the supply chain.

The conditions also included: the taxable person must have late tax returns related to any type of tax, the person’s failure to provide the information requested by the Authority regarding the tax audit within the specified period, and finally, the person’s failure to cooperate with the Authority in any way regarding his obligations during the tax audit.

According to what was stated in the decision, it will be published in the Official Gazette, and will be effective as of January 1, 2026.