In the implementation of the provisions of this Decree, the following words and phrases shall have the meaning ascribed thereto, unless the context stipulates otherwise:

State: The United Arab Emirates State.

Federal Government: The government of the State.

Emirates Governments: The local government in each Emirate.

Ministry: The Ministry of Finance.

Authority: Federal Tax Authority.

Board: The Authority's board of directors.

Chairman: Chairman of the board of directors.

Director General: The Authority' Director General.

Relevant Entities: The federal and local entities concerned with combating tax evasion in the State.

Taxpayer: Any person who pays Federal Taxes.

Federal Taxes: Taxes imposed by virtue of a federal law.

Tax Law: Any federal law by virtue of which a Federal Tax is imposed.

Related Fines: Fines related to the Federal Tax.

Tax Procedures: Procedures of managing, collecting and implementing the Federal Tax and the Related Fines.

Authority's Costs: All operational and constituent expenses.

Tax Evasion: The use of illegitimate methods by a person in order not to pay a due tax, or the use of illegitimate methods to unrightfully redeem a tax.

Double Taxation: The case in which the tax is imposed several times on the same taxpayer and the same income

This Law shall be published in the Official Gazette and shall enter into force as of the day following the publication date hereof.

Federal Law No. (19) of 1978 on the Provisions of the Administrative Control Regulations is hereby repealed. Moreover, any provision conflicting with or repugnant to the provisions hereof is hereby repealed.

The application of administrative penalties shall not prejudice any more severe administrative penalty provided for in any other legislation or the criminal, civil or disciplinary liability of the persons and establishments committing the administrative violations or being responsible for the same.

The Cabinet shall approve the administrative penalties in accordance with the following controls:

1.The administrative regulations shall include an express provision concerning the administrative violations and the administrative penalties thereof;

2.The administrative regulations shall determine the federal agencies in charge of applying the administrative penalties and the procedures for the execution thereof;

3.Such penalties shall be proportionate to the seriousness of the administrative violations;

4.The administrative regulations shall determine the dates, procedures and conditions of complaints about the administrative penalties; and

5.The administrative regulations that include the administrative violations and penalties shall be published in the Official Gazette.

The Cabinet may impose, within the provisions of the administrative regulations, one or more of the following administrative penalties on the persons or establishments committing the administrative violations:

1.Serving a notice;

2.Administrative fine of not less than (AED 100) UAE Dirhams One Hundred and not exceeding (AED 1,000,000) UAE Dirhams One Million;

3.Imposing twice the value of the administrative fine in case of a repeated violation, provided that the fine does not exceed (AED 2,000,000) UAE Dirhams Two Million;

4.Imposing the administrative attachment on the establishments and movable and immovable property of the violator which are the subject of the administrative violation, provided that the term of attachment does not exceed six months and renewable only once;

5.Administrative closure of the administratively violating establishments for a term not exceeding six months and may be renewed for a further term. The unlicensed establishments may be permanently closed down;

6.Revoking the licenses and approvals issued by the federal agencies to the persons or establishments committing the administrative violations or those responsible for same;

7.Administrative banishment of the foreigner who commits the administrative violation; or

8.The violator shall incur the expenses and costs of removing and rectifying the damage arising out of the violation if the violator fails to remove or remedy the same.

The provisions hereof shall apply to the administrative violations, with the exception of administrative violations relevant to human resources in the federal government.

For enforcing the provisions hereof, the following words and expressions shall have the meanings assigned thereto respectively, unless the context requires otherwise:

State/ UAE:The United Arab Emirates. 

Federal Agencies:The ministries and other public organizations, authorities and federal government bodies. 

Administrative Regulations:The executive resolutions and regulations, codes and administrative control regulations issued by the Cabinet. 

Administrative Violation:Any act or omission that may constitute a violation of the federal legislation applicable in the State. 

Administrative Penalties:Any administrative penalty prescribed under the provisions of Article (3) hereof. 

Establishment:Any enterprise or company which engages in any business, service, professional, labor, agriculture or other activity as well as the cooperative associations and civil society associations and organizations of public utility. 

This Law shall be published in the Official Gazette and shall come into force as of its date of issuance.

Any other text contradicting or conflicting with the provisions of this Law shall be repealed.