Based on the authority
vested in me under Article
(50) and in pursuance of the
provisions of article (31)
of the General Sales Tax Law
No. (6) for the year 1994,
as amended, the following
Instructions are to be
followed:
1) The form of
control over the premises
where production is subject
to special tax shall be a
physical or accounts-based
control by a decision made
by me.The physical control
shall be carried out by a
physical presence of the
Department’s officers
therein as may be required.
2)
The taxable persons
governed by this law, other
than those whose production
is subject to special tax,
shall be subject to
accounts-based/indirect
control save those excluded
for special considerations
upon recommendations by the
Director so that physical
control can be applied. This
decision shall be notified
to the taxpayer in order to
abide by the requirements of
such control.
3)
The Director may
impose a physical control,
for period that he sees
proper, on the tax payer
whose violation of the
provisions of Article (18)
of this law is established.
4)
A taxpayer who is
subject to a physical
control shall be required to
set up a suitable office to
be used by the control
officers assigned to him. He
shall also be required to
make available for them the
means which are necessary
for the application of the
provisions of this Law.
5) The taxpayer who
is subject to physical or
indirect control shall
comply with the following:
a-To prepare annual
inventory takings of the
stock and balances of his
stores and warehouses as
well as retain same for a
period of five years from
the date of the year in
which the inventory taking
was made.
b- To notify the
Department of the periods of
stoppage for any reason
whether the stoppage was
total or partial within one
week of the date of
stoppage.
6) The physical
control officers shall be
authorized to practice
control over the production
inputs, premises of
production and
supply of taxable goods, as
well as the use and
organization of records,
entries and forms
relating thereto.
The officials in the
premises shall be required
to facilitate their
assignment.
7) The physical
control officer shall be
required to comply with the
following:
a-Supervise the entry and
issue of production inputs
or purchases necessary for
the exercise of the business
activity, utilization and
organization of the entries
and forms necessary thereto.
b- Supervise the
production process, confirm
the volume of daily
production vide reports
approved by the concerned
parties or the authorized
person thereof and the
control officer.
c- Supervise and audit the
supplies against the
invoices or delivery notes,
as well as organize the
entries and forms necessary
thereto.
8) The Director may
authorize any of the
Department’s officers to
exercise the authorities
provided for under
paragraph (a) of
Article (30) of the Law and
which pertain to the control
over the premises of the
taxable
goods and services.
9) The Department’s
officers authorized vide a
special search warrant
issued by the Director may
carry out
inspection of the
production and supply
activities in order to
ascertain the existence of
potential fraud or
violation of the
provisions of this law. They
shall have the right to take
custody of the records and
accounts for
auditing purposes
within a maximum period of
six months, and a maximum
period of three weeks for
goods,
from the date of
which the taxpayer shall
have produced all the
required documents.
10) The Director may issue
detailed instructions
specifying the form and
mechanism of control over
the production
and supply
premises.
11) Instructions No. (8)
for the year 2001 pertaining
to the form and limits of
control, and Instructions
No.(9) for
the year 2001
concerning the nomenclature
and classification of
services shall be hereby
repealed.
12) These Instructions
shall be put into operation
as of the date of
publication thereof in the
Official Gazette.
Minister of Finance