The Director's Personal Liability Trap
"Can a Director be held personally liable for a company’s unpaid Corporate Tax?"
The Scenario
A mid-sized logistics firm undergoes a restructuring. During an FTA audit, it is discovered that the designated 'Taxable Person' (a Director) signed off on filings without verifying the underlying digital evidence or 'Arm's Length' pricing between subsidiaries.
Statutory Penalty
Under Federal Decree-Law No. 47 and Executive Regulations, the FTA can pierce the corporate veil if 'gross negligence' or 'fraudulent intent' is found. Administrative fines start at 50,000 AED and can escalate to personal asset freezing.
Reference: Article 60 of Decree-Law No. 47 & Cabinet Decision 75
The Arakan Forensic Fix
Arakan AI creates an immutable 'Director’s Shield'—a forensic audit trail of every validation step, proving 'Due Care' and eliminating the grounds for personal liability claims.
- Real-time Monitoring
- Audit-Ready Logs
- Statutory Mapping