Saudi efforts to raise awareness of violating tax practices
“Zakat and Income Tax” has received 12 thousand reports and is equivalent to 500 informants since September
Friday – 9 Jumada Al-Akhira 1442 AH – January 22, 2021 AD Issue No. [
“Zakat and Income” deals with reports quickly and with complete confidentiality (Asharq Al-Awsat)
Riyadh: «Middle East»
Yesterday, the “Zakat and Income Tax” indicated that it had received 12.4 thousand notifications in 4 months only about a number of tax violations, such as tax evasion, and the collection of a value-added tax higher or lower than the 15 percent approved rate, or its collection by an unregistered person, or not Issuing tax invoices, or not saving them, or not keeping tax records and invoices, or the tax number is not present on the invoice.
According to a statement issued yesterday, 3776 reports were received by the Zakat and Tax Investigations Department last September, followed by 3150 reports in October, 2910 in November, and 2558 reports in December of last year.
The “Authority” continued that the efforts to raise awareness of tax practices and channels for reporting tax violations have resulted in remarkable awareness among taxpayers in avoiding violating tax practices, and among consumers with regard to reporting tax violations that fall within the jurisdiction of the “authority”. This awareness was evident in the gradual decrease in the number of reports received by the “commission” over the past four months.
The Zakat and Income Authority revealed that it had disbursed incentive bonuses to 529 informants since last September, after verifying the validity of the reports they submitted about a number of tax violations and the applicability of the reward entitlement conditions, indicating that the violation of the absence of a tax number on the invoice was the most reported violation. By consumers, with 128 reports, followed by the violation of not collecting the value-added tax with 82 reports, and the collection of a tax less than the basic rate of 75 reports.
This comes after the “commission” began in February of last year to implement the incentive bonus list for whistleblowers, which provides for the provision of financial rewards to those who contribute to the detection of violations of tax regulations at 2.5 percent of the value of violations and fines, with a maximum limit One million riyals, and a thousand riyals as a minimum, as this step aims to preserve public funds by enhancing tax compliance, reducing tax violations among taxpayers, and encouraging the establishments’ commitment to their statutory responsibilities.
It is reported that the consumer awareness messages about tax violations and the channels for reporting them published on the Authority’s various social media platforms; It achieved a record number of 12.3 million hits in the same period, and through many promotional hashtags; At the head of it were “Your Communiqué_It matters to us”, “Do not be complacent,” and “Zakat and income.”
The General Authority for Zakat and Income deals with consumers’ reports regarding violations of tax regulations in the Kingdom in an expeditious manner, and with complete confidentiality, by its competent departments.
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