{"id":3741,"date":"2024-03-28T13:16:47","date_gmt":"2024-03-28T13:16:47","guid":{"rendered":"https:\/\/aounlawfirm.com\/?p=3741"},"modified":"2024-03-29T13:13:24","modified_gmt":"2024-03-29T13:13:24","slug":"tax","status":"publish","type":"post","link":"https:\/\/aounlawfirm.com\/tax\/","title":{"rendered":"Tax Evasion Sanctions In The UAE"},"content":{"rendered":"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221; bg_image_animation=&#8221;none&#8221;][vc_column_text]Tax evasion is the use of illegal sources or means to reduce the amount of the tax due, a refund of tax,<br \/>\nor non-payment. Taxes in the UAE are not implemented on everyone, only taxable people, which are<br \/>\nthose who exceed the certain set net worth or profit set by the tax authorities are obliged to pay tax.<\/p>\n<ul>\n<li><strong>\u00a0Any criminal liability in case of Tax Evasion?<\/strong><\/li>\n<\/ul>\n<p>The Federal Tax Authority (FTA) will impose tax evasion penalties on a taxable person if this person was<br \/>\ndeliberately unsuccessful in settling the payable tax. The Article (26) of the Law No.7of 2017 presents<br \/>\nthe penalties that the law has established for criminal activities of taxpayers in the country, related to<br \/>\nthe tax procedures. The Article (26) has established that, the FTA can now impose a prison sentence and<br \/>\nmonetary penalty not exceeding five times the amount of evaded tax or either of the two, shall be<br \/>\nimposed on:<br \/>\na. A Taxable Person who deliberately fails to settle any Payable Tax or Administrative Penalties.<br \/>\nb. A Person who deliberately understates the actual value of his Business or fails to consolidate his<br \/>\nrelated Business with the intent of remaining below the required registration threshold.<br \/>\nc. A Person who charges and collects amounts from his clients claiming them to be Tax without<br \/>\nbeing registered.<br \/>\nd. A Person who deliberately provides false information and data and incorrect documents to the<br \/>\nAuthority.<br \/>\ne. A Person who deliberately conceals or destroys documents or other material that he is required<br \/>\nto keep and provide to the Authority.<br \/>\nf. A Person who deliberately steals, mis-uses or causes the destruction of documents or other<br \/>\nmaterials that in the possession of the Authority.<br \/>\ng. A Person who prevents or hinders the Authority\u2019s employees from performing their duties.<br \/>\nh. A Person who deliberately decreases the Payable Tax through Tax Evasion or conspiring to<br \/>\nevade Tax, depending on the specific taxpayers and their activities thereof.<\/p>\n<ul>\n<li><strong>Measures taken in the UAE to enhance tax compliance<\/strong><\/li>\n<\/ul>\n<p>The UAE has recently introduced several measures to enhance its tax compliance framework and to<br \/>\ncombat tax evasion. Some of these measures include:<\/p>\n<ol>\n<li>\u00a0The establishment of a whistleblower system for violations and tax evasion (\u201cRaqeeb\u201d)<br \/>\nby the Federal Tax Authority (FTA) in April 2022. The system allows individuals to report<br \/>\nsuspected cases of tax evasion or non-compliance by natural or legal persons, and to<br \/>\nreceive monetary rewards if certain conditions are met.<\/li>\n<li>\u00a0The issuance of the first ruling on tax evasion by the UAE Federal Supreme Court in<br \/>\nSeptember 2021. The ruling affirmed that a taxpayer who deliberately understated his<br \/>\ntaxable income and failed to disclose his bank accounts was guilty of tax evasion and<br \/>\nliable for criminal penalties.<\/li>\n<li>The reduction of administrative penalties for taxpayers who voluntarily disclose errors<br \/>\nor omissions in their tax returns within 20 working days of becoming aware of them. The<br \/>\nreduced penalties range from 5% to 40% of the unpaid tax, depending on the timing and<br \/>\nnature of the voluntary disclosure.<\/li>\n<\/ol>\n<p>These developments indicate that the UAE is taking a serious stance against tax evasion and non-<br \/>\ncompliance, and that taxpayers should be vigilant and proactive in ensuring their tax affairs are in order.<br \/>\nTaxpayers should review their tax positions and transactions regularly, seek professional advice where<br \/>\nnecessary, and submit voluntary disclosures where appropriate to avoid harsher consequences.<\/p>\n<p>Taxpayers should be aware of the recent developments and implications in the UAE tax compliance<br \/>\nframework, and take appropriate steps to ensure their compliance with the applicable tax laws.[\/vc_column_text][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221;&#8230;<\/p>\n","protected":false},"author":1,"featured_media":3748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.2.1 - 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