This Public Clarification (TAXP002) details the concessionary measures for redetermining administrative penalties imposed prior to 28 June 2021. It explains the implementation of the Third Article of Cabinet Decision No. 49 of 2021, which amended Cabinet Decision No. 40 of 2017. The clarification outlines the specific conditions taxpayers must meet to benefit from a penalty reduction. To qualify, a person must settle all outstanding payable tax and pay 30% of the total unsettled administrative penalties by 31 December 2021. If these conditions are met, the Federal Tax Authority will redetermine the payable penalty amount to 30%.