Silence may be deemed consent Article 135 of the Civil Code (Law No. 5/1985) states that (i) no statement may be attributed to a silent person. However, circumstantial silence shall constitute acceptance. And (ii) silence shall amount to acceptance namely in case of previous dealings between the contracting parties that are met by the […]
Facts The taxpayer submitted tax returns for the prescribed tax periods as of January 2018, and these returns included supplies related to real estate owned individually to the taxpayer, as well as real estate owned in partnership with another person. The taxpayer’s partner was not added to the tax registration from the beginning due
UAE Supreme Court orders cancellation of tax penalties for re-submission of returns Read More »
Facts and Trial A company operating from 2001 till 2012 was in strong financial standing. After 2012, the company faced financial difficulties and lawsuits and by 2020 had encumbered debts amounting to almost AED 20 million. The Federal trial courts (Primary and Appeal) assessed that the company was trading in a commercial business by
Brief In December 2019, the UAE formed a high Commission to establish unifying precedents across the various judicial systems of the UAE. The UAE has six judicial systems: Federal, Abu Dhabi, Dubai, Ras Al-Khaimah, the Dubai International Financial Centre, and the Abu Dhabi Global Market. Historically there have been conflicting positions between the judicial
Brief A company in Abu Dhabi providing electronic services since 2009 had its commercial license revoked by its licensing authority. The company challenged the revocation decision for being unfounded before the Federal Courts. The company requested from the Federal Courts: (1) cancellation of the license revocation decision, and (2) compensation of 100 million Dirhams.
UAE Supreme Court orders Government agency to pay company damages for license revocation Read More »
Brief For the first time since the UAE tax laws came into effect in October 2017, the legislation now: Grants permission to pay tax penalties in installments. Specifies reasons that permit penalty waivers.* Prohibits installments or waivers if litigation is ongoing. Allows for a class action against tax penalties. Permits waiver of penalties paid
In a recent judgment by the Abu Dhabi Cassation Court, the Court looked into whether an amended memorandum of association binds the shareholders to the arbitration agreement in the original memorandum. Case The shareholders of a limited liability company included an arbitration agreement in the memorandum of association at the time of incorporation of
Brief The Public Prosecution took action against two entities; a tobacco trader (first accused) and a warehouse operator (second accused) on tax evasion charges for possessing cigarette goods that lack the requisite distinctive marks (tax stamps). On 27 May 2020, the warehouse operated by the second accused was inspected by the Public Prosecution where
UAE Supreme Court acquits warehouse operator in tobacco tax evasion case Read More »
Novelty It has generally been the case that a jurisdictional challenge against the courts to hear a dispute where an arbitration agreement exists must be made at the first hearing that takes place, at the first level of the overseeing trial court. (To clarify – the ‘first hearing’ is in reality usually the first
Novelty In a landmark judgment by the Abu Dhabi Cassation Court in October 2021, the Court confirmed that an agent/representative may bind a principal to an arbitration agreement if they have: Explicit written authority. Explicit verbal authority. Implied authority. Apparent authority. It was recently the case that the Dubai Courts acknowledged apparent or implied
