As of tomorrow, the Federal Tax Authority will implement the “Raqib” system to reduce violations and tax evasion

The Federal Tax Authority has announced the launch of the “Tax Evasion and Violations Whistleblower System” under the slogan “Raqib” to activate community control over local markets, raise the level of tax compliance in the country and reduce cases of tax evasion.

She explained that the application of the system will start as of tomorrow, Friday, April 15th, in implementation of the Cabinet’s decision regarding the application of the system of whistleblowers of violations and tax evasion, which authorizes the authority to receive and verify reports from individuals on cases of tax evasion and tax-related fraud and violations of tax legislation and grant Financial rewards for whistleblowers when certain conditions are met.

In a press statement issued today, she explained that the "Tax Evasion and Whistleblower System" aims to enhance transparency and competitiveness in the field of doing business, raise compliance rates with tax legislation, raise tax awareness and society's confidence in the tax system. Combating tax violations. Under the system, a financial reward is granted to the informant whose report leads to the Federal Tax Authority collecting tax amounts in excess of 50,000 dirhams.

The authority called on all segments of society to participate in the oversight efforts through the system, which provides an easy and clear mechanism for reporting tax violations. The financial consideration for the notification, and all other definitional, legal and procedural matters related to the system.

The authority stressed that the mechanism for reporting tax violations includes standards that guarantee the highest levels of confidentiality, ensure that the identity of whistleblowers are not disclosed to any party, and provide them with full protection and immunity to ensure that they are not exposed to any harmful consequences for carrying out their societal responsibilities by reporting illegal practices.

The Director General of the Federal Tax Authority, Khaled Ali Al-Bustani, stressed that the "system of whistleblowers for violations and tax evasion" comes within the framework of the rational leadership's directives to implement the tax system in accordance with the best standards that ensure further growth of the national economy, achieve transparency, and maintain economic momentum by providing a tax legislative environment. Encouraging self-compliance, and keeping pace with changes through continuity in issuing decisions in accordance with the interim requirements.

He said, "The authority, through the implementation of the system of whistleblowers of violations and tax evasion, aims to provide an opportunity for all segments of society to contribute to the regulatory efforts aimed at protecting markets and public funds from tax evasion, and to achieve justice by complying with all taxpayers without the existence of illegal practices."

He added: "The system contributes to strengthening the concept of community partnership to reduce negative practices in local markets, and preserve the rights of the state and its financial resources, as tax evasion is one of the most important challenges facing tax systems in most countries of the world, as illegal acts that harm economic systems as a whole. In general, facing these challenges requires concerted governmental and societal efforts to curb these practices.

The Federal Tax Authority confirmed that the new system would raise the efficiency of tax dues collection, increase tax awareness, enhance society’s confidence in the tax system, and ensure that it was applied fairly to everyone without evasion or fraud, and would reduce the time periods taken for investigations related to cases of tax evasion and violations. Tax legislation by providing additional evidence that the authority can rely on in its procedures to ensure the collection of tax dues with high accuracy, and to achieve greater effectiveness in audits, thus reducing cases of tax evasion.

The authority explained that under the system, the authority may use the information provided by the informant to detect violations and tax evasion, determine the procedures for approving financial rewards and the powers to grant them, and determine the procedures and conditions that must be followed, and the requirements that must be fulfilled in relation to any information provided by the informant, including the requirements for proof and verification. Documenting, and specifying any other conditions, requirements, or competencies that are necessary to administer or implement the whistleblower system for tax evasion.

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