For Combating Tax Evasion and in Cooperation with Zakat & Tax Authority, MCI Detected an Apartment in Dammam for Storing Tobacco Products, 24810 Cigarette Packets Seized

28 Jun 2017
In cooperation with the Selective Tax Working Group of the General Authority for Zakat & Tax in Dammam, MCI Inspection Teams seized 24810 cigarette packets in labor apartment belonging to one of the Establishments in Dammam. This apartment was used to store these large quantities of tobacco products that exceed the minimum tax threshold estimated by 60 thousand riyals, where the value of this quantity is estimated, before calculating the selective tax, on the basis of the selling price for the final consumer.

The aforementioned quantity had been stored without signing in through the website of Zakat and Tax Authority, and without payment of the prescribed tax and taking the receipt. This is considered a kind of tax evasion, which is punishable by the law, because it is a quantity whose value exceeded the minimum selective tax exemption for the transitional period of 45 days from the date of enforcing the said selective tax, related to the stored quantities of tobacco, power and fizzy drinks.

Meanwhile, Zakat & Tax Authority announced through different media that the stored quantities, exceeding the minimum tax threshold, should be registered with the payment of the prescribed tax. Those, who fail to register and pay the tax, are considered violators of the Selective Tax Law and its Implementing Regulation. Therefore, they would be liable to investigation, prosecution and imposing the legal penalties by the Selective Tax Control Teams, who are cooperating with MCI Inspection Teams and with the Customs Department.

The General Authority for Zakat & Tax has instructed all those concerned with the selective tax payment, in the transitional and the following period, to hurry up and input the quantities they have, without any delay, also to do the necessary payment and to take the relevant receipt voluntarily, without the interference of the inspectors, so that to avoid the legal penalties and fines.

It is worth mentioning that Zakat and Tax Authority cooperates with MCI Control & Inspection teams, and with the Customs Department, to follow up cases of tax evasion, as well as calling on all citizens and residents to give tips and report any cases of tax evasion, since they will be rewarded by the said Authority, while maintaining the confidentiality of their data.

Last Modified 26 Dec 2018