Tax Disputes, Car Insurance, Residencies, Traffic fines, Travel Ban, Cyber Crime & more.

If you look at the tax procedure law, which was the first step in implementing VAT in the UAE, it has a specific chapter that talks about challenges or disputes. For example, a company practicing in Dubai and subject to VAT might have a dispute with the authorities regarding the value of VAT to be transferred or issues surrounding tax refunds.

Alternatively, a company might have submitted reports but missed a transaction, either intentionally or unintentionally, which can lead to fines from the authorities. The law distinguishes between these scenarios: whether submissions were made in bad faith—where someone is trying to manipulate books—or simply due to an oversight. Each attracts different penalties or processes.

Host
So, to summarize, disputes may arise because of disagreements over fines, missed transactions, or perceived inaccuracies in submissions. What options are available for a company facing such a situation?

Ali Al-Assad
If a company or individual disagrees with a fine, they can file a reconsideration application with the tax authority. The authority must respond within 20 days. If the outcome satisfies the party, they can settle the matter by paying the fine or accepting a revised decision.

Alternatively, if the party is unhappy with the decision, they can escalate the matter to the newly established Tax Disputes Resolution Committee. There are three committees: one in Dubai, one in Abu Dhabi covering Al Ain and the western region, and one for the northern emirates covering Sharjah, Ajman, Umm Al Quwain, and Fujairah.

Host
And what’s the role of these committees?

Ali Al-Assad
These committees are similar to an appeal body. They consist of a judge and two experts who review decisions made by the tax authority. If the dispute amount is less than AED 100,000, the committee’s decision is final. If the amount exceeds AED 100,000, the party can take the matter to court for further litigation.

Host
So, in effect, this committee acts as an intermediary step before a case reaches the courts, similar to the Ministry of Labour’s role in labor disputes?

Ali Al-Assad
Exactly. It’s a step designed to potentially settle disputes without escalating to a full court case. If the committee’s decision doesn’t satisfy one of the parties, they have the right to take the matter to court.

Host
There’s always the question of intent when it comes to tax errors—whether they are genuine mistakes or deliberate acts. How is intent factored into these cases?

Ali Al-Assad
The law differentiates between genuine mistakes and intentional fraud. For example, if someone inadvertently omits a transaction, they can voluntarily report the error to the authorities and correct it without severe repercussions. However, if someone deliberately manipulates their financial records to reduce tax liability, it’s treated as a serious violation with heavier penalties.

Host
It’s certainly a complex area. Thank you for breaking it down so clearly, Ali. We’ve had a couple of questions come in for you, so let’s dive into the first one.

This listener has third-party car insurance only. Their car was stolen from a mechanic shop where it was parked in an open area and hasn’t been recovered. They’re asking what actions they can take and how they should proceed.

Ali Al-Assad
In this case, since their insurance is third-party only, there’s no claim against their own insurance company. The focus shifts to whether the garage is liable. If the garage is found negligent, such as leaving the car in an unsecured area, they may be held responsible for compensating the car’s value.

However, if the garage can prove they took all reasonable measures to secure the car and it was stolen despite their efforts, then they may not be liable. Documentation like a receipt for leaving the car at the garage or any CCTV footage will be critical in proving negligence.

Host
And if the keys were stolen from inside the garage’s office, would that make a difference?

Ali Al-Assad
Yes, it would. If the theft occurred because of negligence, like leaving the keys in an unprotected area, the garage is likely liable. However, if the keys were stolen during a break-in despite secure measures being in place, the garage could argue they were also victims of a crime.

Host
So, to summarize, the listener should gather any documentation, including receipts or CCTV footage, and consult a legal professional to determine if negligence can be proven.

Let’s take another question. This one asks: “My landlord is refusing to reimburse me for repairs I made to their bathroom, claiming I’m subletting to others without their permission. What can I do to get reimbursed without escalating the case?”

Ali Al-Assad
This depends on the tenancy contract. If it specifies that major repairs are the landlord’s responsibility, the tenant is entitled to reimbursement. However, the tenant must notify the landlord and provide them an opportunity to arrange the repairs themselves. If the landlord refuses, the tenant can proceed with repairs, keep the invoices, and seek reimbursement.

As for the subletting claim, if the landlord has no proof, they cannot use this as an excuse to withhold payment. Even if subletting is occurring without permission, the landlord must follow the legal process to address it, such as serving a 30-day notice. The repair and subletting issues should be treated as separate matters.

Host
What if the landlord refuses to reimburse even after proof of repair expenses is provided?

Ali Al-Assad
The tenant can file a claim with the Rental Dispute Center. Alternatively, if the tenancy is up for renewal, the tenant could deduct the repair costs from the rent and issue a revised check. If the landlord disputes this, they would have to file a case, putting the onus on them to prove their position.

Host
Great advice. Ali, thank you so much for breaking that down. We’ve got more questions for you, so let’s keep going.

Host
This one is about tenancy contracts: “My tenant sent me a text message two months before the contract expires, stating they won’t renew. Is this an acceptable notice period? If not, what can I do?”

Ali Al-Assad
According to the law, any amendments or termination of a tenancy contract must be communicated at least 90 days before the contract’s expiry, unless the contract explicitly states a shorter notice period, such as two months.

If no such clause exists, the default is three months. If the tenant gave insufficient notice, the landlord has two options:

1. File a case with the Rental Dispute Center to claim rent for the following year, assuming the contract was automatically renewed due to insufficient notice.
2. Secure a new tenant and move forward without pursuing legal action if it’s feasible and the landlord prefers a smoother transition.

Host
So the landlord would need to decide whether it’s worth pursuing the case based on the tenant’s circumstances, like whether they’re leaving the country or whether another tenant can be easily secured.

Ali Al-Assad
Exactly. If the tenant is leaving the UAE, the landlord should consider whether chasing the matter legally is practical. If there’s high demand for the property, it might be easier to start fresh with a new tenant.

Host
That’s clear and practical. We have another question, this time about landlords and deposits: “I left my villa over a month ago at the end of my contract, but my landlord won’t return my deposit even though they agreed to. What’s the best course of action?”

Ali Al-Assad
The tenant should first email the landlord, requesting an explanation for withholding the deposit. If the landlord doesn’t respond or provides an unreasonable justification, the tenant can file a case with the Rental Dispute Center to recover the deposit.

The landlord is obligated to refund the deposit unless they can prove the funds are needed for damages beyond normal wear and tear. However, documentation is key—tenants should have evidence, such as photos or videos taken when they vacated the property, to counter any claims.

Host
How long should a tenant reasonably wait before pursuing legal action?

Ali Al-Assad
If the landlord is responsive and provides updates, it’s reasonable to wait up to a month. However, if there’s no communication or it’s clear the landlord is avoiding the issue, the tenant can proceed after about two weeks of no response.

Host
We’ve had a follow-up to the deposit question from a landlord’s perspective: “My tenant left damages, so I withheld part of their deposit for repairs, but they’re disputing this. What should I do?”

Ali Al-Assad
The landlord must provide proof of the damages and the costs incurred to repair them. If the tenant disputes the deductions, the landlord can either:

1. Present their case and evidence at the Rental Dispute Center, or
2. Try to reach an amicable settlement with the tenant to avoid escalation.

It’s important to document everything thoroughly, including photos of the damages, repair invoices, and any written communications with the tenant.

Host
We have another interesting question here: “I lent a friend AED 300,000 on good faith, but they haven’t repaid me, and I don’t have documentation. I filed a fraud case and won, but now I need to file a civil case to recover the money. What are my options if I can’t afford the civil case fees?”

Ali Al-Assad
In UAE courts, filing fees for civil cases are typically 6% of the claim amount, capped at AED 20,000, with a minimum of AED 500. If the borrower has no assets or income to repay the amount, the court may issue an arrest warrant, but imprisonment for debt cannot exceed 36 months in total.

Unfortunately, there’s no alternative to filing the civil case if you want to recover the funds. If affordability is a concern, consider negotiating with the borrower for partial payments or reaching a private settlement to avoid additional legal costs.

Host
It sounds like this case requires a careful cost-benefit analysis. Filing a case could be worthwhile if the borrower has assets, but if not, the costs might outweigh the benefits.

Ali Al-Assad
Exactly. The individual should assess the borrower’s financial situation before proceeding.

Host
Thank you, Ali. This has been incredibly insightful, and we still have more questions coming in. Here’s one: “I objected to a traffic fine via the Dubai Police app, but it was rejected without explanation. What’s the next step if I want to contest it further?”

Ali Al-Assad
If your objection is rejected, the next step is to escalate it to the traffic court. This involves filing an objection through the police system, after which you’ll attend a hearing in front of a traffic judge. At the hearing, you’ll present your case, and the judge will decide whether to waive or uphold the fine.

Host
Does this process apply to all types of fines?

Ali Al-Assad
Yes, this applies to all violations you want to contest. It’s crucial to gather any evidence, such as dashcam footage, to strengthen your case.

Host
Ali, we’re almost out of time, but I want to squeeze in one final question: “My landlord converted the building’s playroom into a supermarket without notifying tenants. Is this allowed?”

Ali Al-Assad
This is a breach of the tenancy contract if the playroom is considered a shared amenity included in the agreement. Tenants can file a case with the Rental Dispute Center, arguing that the landlord’s actions have materially affected the agreed-upon terms of tenancy.

The court may order the landlord to reinstate the amenity or compensate tenants if they can prove that the change has impacted their use of the property.

Host
That’s excellent advice. Ali, thank you so much for answering all these questions today. It’s always a pleasure having you here.

Ali Al-Assad
My pleasure. Thank you for having me.

Host
That’s all for Drive Live Talks Legal. Stay tuned for more updates after the break!