Authorities act against two companies for QR24 million tax evasion

Authorities act against two companies for QR24 million tax evasion By A Robin - February 17, 2023


In coordination with the relevant authorities, the Revenue Protection Team of General Tax Authority (GTA) identified tax evasion cases by a group of individuals and companies. The investigations revealed that two companies operating in the contracting sector had committed acts that constitute tax evasion crimes. The authorities referred these companies to Public Prosecution for legal action and to recover the evaded amounts, a total of QR24 million, in addition to the penalties and fines stipulated by the applicable laws.

The competent court has issued convictions against both the first company and its authorized signatory partner (an Arab national), by his capacity as the CEO and legal representative of the said company, fining him QR500,000 for concealing the company's actual income. The court has also ruled that the company must pay the claimed tax amounts, which total QR19 million.

The second company also received legal convictions, including a one-year sentence for its authorized signatory partner (an Arab national), who will be deported from the country after serving the penalty. His charges included refraining from registration with the GTA, concealing the company's income, and using fraudulent methods to evade taxes. The second company was fined one million Qatari riyals for concealing its real income.

The authorities stated that tax evasion is a serious impediment to tax systems worldwide, adding that such criminal practices harm the national economy and compromise equality and fair opportunities among taxpayers while eroding the competitive advantage of compliant companies. Moreover, the GTA reiterated its commitment to combat tax evasion and take legal action against anyone guilty of such crimes. 

The GTA's Revenue Protection Team works closely with all relevant agencies to ensure strict compliance with the provisions of the Income Tax Law No. 24 of 2018 and put an end to all fraudulent practices that may lead to tax evasion.

The GTA is taking proactive measures across all its departments to foster voluntary tax compliance and enhance community confidence in the tax system. These ongoing efforts aim to minimize tax evasion and create an environment of greater tax compliance.

The authorities urged all taxpayers to strictly comply with the provisions and procedures outlined in the tax laws to avoid any potential legal consequences.

By A Robin - February 17, 2023

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