The Challenge
"Mr A had travelled to Saudi Arabia with his family when his wife fell critically ill and slipped into a coma. What was meant to be a short trip stretched past six months, with Mr A unable to leave her side or return to the UAE, while back home his VAT and corporate tax obligations quietly fell into default."
By the time Mr A came to us, the Federal Tax Authority had already issued penalties for non-compliance with both VAT and corporate tax filing requirements, accrued during the months he was unable to return to the UAE. He had no way to manage his UAE tax affairs from a hospital in Saudi Arabia while caring for his wife, and the penalties kept mounting in his absence.
Our Approach
- Gathered the evidence — we asked Mr A to obtain formal medical documentation from the Saudi hospital confirming his wife's condition and prolonged hospitalisation.
- Built the waiver case — we prepared a penalty waiver application to the FTA grounded in those medical records, setting out why compliance had been impossible during that period.
- Responded to FTA follow-up — when the FTA requested more specific supporting documents from the hospital, we guided Mr A through procuring them and resubmitted a stronger, more detailed application.
The principle behind our approach was simple: the FTA’s waiver provisions exist precisely for situations genuinely outside a taxpayer’s control, and a well-documented, evidence-led case gives that reality the best chance of being recognised.
The Result
The FTA accepted that Mr A’s circumstances were beyond his control and approved the penalty waiver application we submitted on his behalf, and the penalties for both VAT and corporate tax non-compliance were cancelled.
The Takeaway
"When genuine hardship prevents compliance, the FTA does provide a path to relief — but it has to be built on solid, well-documented evidence, not just explained after the fact."
