Abu Dhabi fines 23 entities $166,000 over tax rules

Abu Dhabi has fines 23 entities over violations of tax rules in the UAE.

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) imposed penalties totalling AED610,000 ($166,000) on 23 entities for contraventions of the Common Reporting Standard Regulations 2017 and/or the Foreign Account Tax Compliance Regulations 2022.

The Regulations implement international frameworks that require reporting entities to collect and report information on foreign account holders to help combat international tax evasion.

Abu Dhabi tax rules

The underpinning inter-governmental arrangements entered into by the UAE enhance global tax transparency by facilitating the automatic exchange of financial account data between jurisdictions.

The actions taken by the FSRA of ADGM address a range of CRS and FATCA compliance breaches, including failures to:

• Submit risk assessment
• Submit the required annual information return(s)
• Follow due diligence procedures
• Report information in a complete and accurate manner
• Collect valid self-certification forms

Emmanuel Givanakis, CEO of the FSRA at ADGM, said: “ADGM is committed to upholding international tax reporting standards. These enforcement outcomes reflect the FSRA’s firm support for the UAE’s commitment to financial transparency and alignment with global commitments to information exchange.

“We are committed to identifying and addressing practices that do not meet our commitment to combat tax evasion through implementing robust and effective regulations in line with leading global standards of compliance and reporting responsibility.”

A copy of the FSRA’s CRS and FATCA penalty notices can be found on the ADGM website.