The penalty does not exempt the fraudster from paying the tax

Request for Information: Fuad Ali

Legal knowledge of value added tax is of paramount importance to take into account the payment and attention mechanism and to avoid any manipulation or falsification of the necessary financial data at the tax declaration. It is incumbent upon those charged with the implementation of the Fiscal Procedure Act to intensify the awareness and dissemination of tax knowledge to all segments of society and in major languages ​​in order to avoid any form of administrative or criminal irregularities. Submitted to the tax
The lawyer Ali Al-Khaja said that the specific definition of the crime of tax evasion is the use of illegal means by the person resulting in a reduction of the amount from the tax due or the non-payment of a tax that he had no right to recover, The law states that tax payers, businessmen or consumers, must be informed of the nature of the penalties provided by law and the offenses: imprisonment and fine not exceeding five times the amount of tax collected by the owner or any of these two sanctions, He deliberately refrained from paying damages The taxable amount was deliberately reduced to the real value of his business, the non-inclusion of his associated works with the intention of not not reach the limit of registration required, the imposition and collection of the tax from s customers, claiming that it is a tax without registration. And who has intentionally hidden or destroyed documents or other documents and is obliged to keep them and provide them to the Authority, and who has stolen or misused the documents or other materials in the possession of the Authority or damaged them and prevented the staff of the Authority from Thus the reduction of the tax to pay the B tax or complicity in it.

If a person has been directly involved or has caused tax evasion, he is jointly and severally liable for non-payment of the tax due and administrative fines in accordance with the provisions of this Law and any other tax law, Application by the competent court of penalties for tax evasion to any person whose participation has been proven directly or caused the tax evasion in accordance with the law. On the other hand, if documents containing tax evasion are referred to a person, the criminal characterization of the offense is a crime and not a crime.
He pointed out that the UAE legislator claimed that punishing tax evasion does not exempt him from fines. It states that the imposition of a fine under the provisions of this Act or any other law may not exempt a person from payment of tax payable or administrative fines in accordance with the provisions of this Act or any fiscal law.

Tax evasion is the non-payment of the taxable person or corporation, taxes owed to the state and its income or wealth or any other incident arising out of it. tax, whether for consumption or importation, or to reduce the amounts of these taxes, using illegal methods and methods, involving fraud, deception and bad faith.
Tax evasion is a punishable offense in most countries of the world, including the UAE. The perpetrators of this crime. There are penalties that can be likened to imprisonment, but a distinction must be made between tax evasion, criminal offense and tax evasion, and legitimate methods and methods do not exist. are not required by law, although some are motivated by the intention of exploiting the shortcomings. Limit possible.

Lawyer Amal Mohamed Omar said that tax evasion is the use of illegal means that result in the reduction of the amount of tax due or unpaid or the refund the tax is not entitled to recovery. Or attempting to introduce selective goods into the state or to remove them or attempt to remove them without payment of the tax due in whole or in part to produce, transfer, acquire, store, transport or receive selective goods for which the tax has not been paid; Not valid on selective products; To evade the payment of the tax due or with a view to its wrongful recovery, submit any document, declaration or false, falsified or artificial document in order to evade the payment of the tax due or to seek to recover it illegally .
Direct Taxes: The most important forms of tax evasion are: cost overruns, deducted from gross income, especially with respect to capital consumption, and authorization of the financier or third parties in which the taxpayer's income is underestimated; Such as smuggling capital abroad, An escape from the imposition of tax on them they stayed at home. The offense of tax evasion or collusion for tax evasion is an offense: anyone who evaded tax or deliberately avoids it or seeks to get rid of it or to recover it illegally has committed a punishable offense. by law
Given the recent application of tax law, it is not necessary to institute a specialized or specialized court, but may later ask if the number of disputes Fiscal order is important and can only be estimated after a period of law enforcement The tax then looks at the possibilities and rewards The data and distinction must be made between criminal litigation and the conflicts are not punitive, which implies the establishment of a competent competent tax court or in the name of the establishment of only one court or in the name of the only competent, practical experience has actually two of the need to die complete the scope of the judicial system, a specialist in taxation.

The impact of tax evasion, especially the financial and economic effects of all countries of the world, whatever the nature of their economic systems, depends mainly on taxes, to achieve their objectives, tax evasion thus hinders the achievement of these objectives. This tax evasion causes significant damage to the Treasury by losing a large part of the assessed tax funds.

Principles of Taxation and Public Accounting

Salim al-Breiki pointed out that tax accounting laws are a set of accounting methods and standards that focus on the calculation of imposed taxes. The principles of tax accounting differ from the general principles of accounting The classification of tax standards is based on the categories of financiers according to the financial segment, in terms of income and type of starch. Me and possessed property, unless otherwise indicated.

Small Projects

The entrepreneur Taib Al Kaabi called for more workshops and seminars to provide a full explanation on how to pay and calculate the tax for small and medium businesses, which account for about 70% of the business sector in the state; For example, by setting a certain ceiling for taxable income of AED 375,000, how does one know whether this small or medium-sized establishment earns this income? Not to mention that you find an installation that has not received income equivalent to 375,000 dirhams this year, and which has exceeded the income of the following year the amount specified by the law of the tax according to market situation and recovery and expansion of economic activity. Al-Kaabi asked if there was an electronic program in every small, medium or large company to know the amount of revenue and know the added value, adding that it was necessary to raise awareness of taxation to avoid fraud or manipulation of invoices and other procedures.

Ali al-Khaja pointed out that tax evasion offenses and their penalties fall within the jurisdiction of the competent court and that legislators do not need specialized tax prosecutions, especially in front of them. Federal Tax Administration. Committee on the Settlement of Tax Disputes ". "The State, represented by the Ministry of Finance and the Federal Tax Authority, should establish an integrated community awareness program to the Fiscal Procedure Law, which will include ongoing workshops throughout the year. Year for different sectors of the country, as well as consumer awareness programs. "