As part of the College of Law's commitment at the University of Sharjah to fostering legal culture and staying abreast of the UAE’s legislative developments, Dr. Muna Mahmoud Idlibi, Associate Professor at the College of Law, presented an overview of the "Administrative Pathway for Tax Dispute Resolution" in the United Arab Emirates. Dr. Idlibi emphasized that the UAE has successfully established one of the most advanced tax systems in the region, beginning with Value Added Tax (VAT) and Excise Tax, and most recently, Corporate Tax.

• Transparent Mechanisms to Enhance the Business Environment

Dr. Idlibi noted that the expansion of tax obligations has been accompanied by the establishment of clear and transparent mechanisms for resolving disputes between taxpayers and the tax administration. This begins with the "Administrative Pathway" as a mandatory step prior to litigation. This path aims to resolve disputes swiftly and efficiently through three main stages:

• Review of Tax Assessment:

Conducted before the Federal Tax Authority (FTA) regarding assessments or their associated penalties'.

• Request for Reconsideration:

This serves as an opportunity to rectify errors without escalation. The request must be submitted within 40 days of notification, supported by evidence and documents, with the FTA required to issue a decision within a similar timeframe.

• Tax Dispute Resolution Committees (TDRCs):

These are permanent committees (located in Abu Dhabi, Dubai, and Sharjah) that are administratively and financially under the Ministry of Justice. Their decisions are final if the total dispute amount (tax and penalties) does not exceed AED 100,000.

Features of the Administrative System

Dr. Idlibi explained that these committees, which include elite financial and legal experts, possess "quasi-judicial" powers and broad authority to amend, cancel, or uphold decisions. This system has significantly contributed to:

• Reducing the burden on courts by providing an expedited channel for handling complex disputes.
• Lowering financial and time costs for both companies and individuals.
• Strengthening mutual trust between taxpayers and the tax administration.

• Future Outlook

Dr. Idlibi concluded by highlighting that this administrative pathway is undergoing continuous updates in procedures and digital infrastructure. This aligns with the UAE's vision to create a competitive business environment rooted in transparency and the rule of law. She also praised the recent FTA Decision No. 1 of 2025, which keeps pace with these ambitious national goals.