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  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

  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)

  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.

  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

  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

  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

  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

  As of first November 2021, the tax dispute procedures have been amended pursuant to Federal Decree-Law No. 28/2021 creating a new opportunity to re-litigate disputes, permitting payments by installments or bank guarantees, providing longer time-bars for objection actions, reducing the payments required to proceed with a tax dispute, and

  In a recent judgment issued in October 2021, the Dubai Cassation Court addressed the permissible number of extensions that may be granted to the time limit for rendering an arbitration award under the DIAC Arbitration Rules 2007 (“DIAC Rules”). DIAC Rules Article 36 of the DIAC Rules provides that

  On 14 September 2021, H.H. Sheikh Mohammed bin Rashid Al Maktoum – the Ruler of Dubai – issued Dubai Decree No. 34/2021 (the Decree), which ameliorates and enhances the position of the Dubai International Arbitration Centre (DIAC) in the global industry and completely redefines the arbitration ecosystem in Dubai. Click

  Brief  The Dubai Courts issued Circular No. 9/2021 on 13 September 2021 mandating that an authorized expert prepared technical report be filed when submitting a statement of claim related to construction, liquidation, or intellectual property claims for acceptance of the claim. The Circular instructs the case management office of

  Brief In a recent judgment by the Joint Judicial Tribunal in March 2021, the Tribunal ordered that: “…the United Arab Emirates is a party to the New York Convention for the recognition of foreign arbitration decisions and their implementation by Decree No. 43 of 2006, which states to accept

  Case brief In May 2021, the UAE Federal Supreme Court ruled on the first tax evasion criminal case ordering payment of five times the amount of the evaded tax, amounting to almost 4.2 million Dirhams. At a hearing in October 2020, the Federal Primary Court ordered the taxpayer to

  In a recent judgment, the Federal Supreme Court ruled that the time limits related to tax disputes do not necessarily commence when notification is issued – but rather require evidence of the receipt and fulfillment of knowledge of the taxpayer of that decision and its contents. The Supreme Court

  In April 2021, the Dubai Cassation Court refused to grant an arbitration award writ of enforcement for violation of public policy on the grounds that the reasoning and decision of the award were not signed by the arbitrator. Background In 2020, a net-winner of an international / foreign arbitration

  Issue Companies often engage in, and operate projects, in the UAE through a joint venture or consortium structure. This is often the case in the construction industry. Generally, these joint ventures or consortiums are unincorporated – meaning that the parties making up the joint ventures do not incorporate a

  The days of the COVID-19 pandemic are gradually becoming a thing of the past and it comes as a sign of glee for companies around the world; but if there is one positive that has been derived from the pandemic, it is the advancement of technology in the workplace

  In a recent judgment, the Dubai Cassation Court clarified the procedure for challenging arbitration-related interim and precautionary orders issued by the competent court or the arbitral tribunal (or arbitrator). Case The contract between the plaintiff and the defendant is governed by an arbitration clause. The plaintiff is the beneficiary

  In late April 2021, the UAE Federal Supreme Court issued the first judgments on disputes arising out of tax private clarifications. The disputes had previously been adjudicated on by the Dubai tax dispute resolution committee, and by the Federal Primary Court and the Federal Appeals Court. The Federal Supreme

  On 28 April 2021, the UAE Cabinet of Ministers issued Decision No. 49/2021 amending provisions of Cabinet Decision No. 40/2017 regulating tax penalties (the “new Decision”). Important highlights: – Late payment penalties reduced from 1% per day to 4% per month. – 300% cap still applies. – New starting

  Recently, in a dispute that Wasel & Wasel was counsel on, the Federal Primary Court ruled providing a definition and test for the ‘tax benefit’ penalty for the first time. What is the ‘tax benefit’ penalty? Of the various tax penalties that are applied by the Federal Tax Authority

  In March 2021, the highest court in the Emirate of Abu Dhabi, the Abu Dhabi Cassation Court, upheld the denial of the enforceability of an arbitration agreement due to the clause merely stating that arbitration shall be governed by the laws of the United Arab Emirates without explicit scope