The Ministry of Finance adopted two parallel paths that combine strictness in prosecuting tax evasion and opening the door to settlement for taxpayers, as it referred more than 100 institutions of large taxpayers to the Financial Public Prosecution, in conjunction with issuing decisions granting reductions in fines within specific conditions and deadlines.
In this context, Finance Minister Yassin Jaber, through the Ministry of Justice, referred an official letter to the Financial Public Prosecution containing a list of the names of more than 100 institutions with major taxpayers. Due to their failure or refusal to pay the taxes owed to them, despite giving the necessary warnings and asking them to pay within the legal deadlines. Jaber requested that the necessary legal measures be taken against the institutions concerned in accordance with the rules, after the files moved from the stage of demands and warnings to judicial prosecution following the tax administration’s follow-up.
Files related to value-added tax gain special importance in this context, given that the money that the taxpayer receives from the consumer under this title is not considered his own revenue, but rather is money that he collects on behalf of the public treasury and he must declare it and supply it to the state.
On the other hand, and to give taxpayers wishing to comply with an opportunity to correct their situation and pay their dues, Minister Jaber issued two decisions related to settling tax fines and reducing them according to specific mechanisms and deadlines. These settlements include verification and collection fines related to value-added tax issued under self-assignment documents as of November 16, 2022, including reductions of up to 75% on relative fines, 60% on lump sum fines, and 75% on fines for late payment, according to the specific cases and conditions, provided that the settlement work extends until October 30, 2026.
This comes as a continuation of previous decisions published by the Ministry of Finance related to the settlement of verification and collection fines imposed under the tax laws issued as of November 16, 2022, as part of the efforts aimed at regulating the situation of taxpayers and enhancing tax compliance.
With these steps, the Ministry of Finance draws a clear equation based on the separation between the evader or one who refuses to pay after being warned, and the taxpayer who takes the initiative to correct his situation. The matter ends with the first party being prosecuted, and facilitations being provided for the second party to return to tax regularity.
To view the referral letter to the Financial Public Prosecution, you can click here.
