FIRST: Misdemeanors and penalties thereof (civil fraud)

Article (32)

 

Apart from the criminal tax offences provided for in this Law, the Director may impose a penalty not less than JD100 and not more than JD500 on the person who commits any of the following acts:

(a) Feature to apply for registration at the Department for a period not exceeding 60 days of the due dates of registration prescribed under Article (13) of this Law.

(b) Feature to submit the tax return within the periods prescribed under this Law.

(c) Submitting a Return containing an underdeclaration not exceeding (10%) or JD5000, whichever is lower, of the true value of taxable supplies of goods or services.

(d) Violating the provisions of Article (18) of this Law.

(e) Failure to inform the Department of changes in the information provided in the application form for registration within the prescribed time limit.

(f) Non-complying, without reasonable excuse, with the attendance warrants, notices, or demands issued in writing by the sales tax officers while performing their duties and responsibilities defined under this Law

(g) Disposal of any of the tax-exempt goods or using them for purposes other than those for which they were exempted in a way contravening the provisions of Article (25) of this Law if that led to an underdeclared tax not exceeding JD500.

(h) The attribution of rates or descriptions, or both, to taxable goods or services in contravention of the taxable rates and descriptions set out in this Law, if that led to an underdeclared tax not exceeding JD500.

(i) Claiming a deduction or refund of tax in a manner that contravenes the provisions of this Law, where the excess deduction or refund does not exceed JD500.

(j) Claiming a deduction or refund of tax on goods taken for personal use, or which were used in the production of goods that were taken for personal use where the amount of the deduction or refund does not exceed JD50.

(k) Submitting or issuing inaccurate documents or information if that resulted in an under declared tax not exceeding JD500.

(l) Obstructing sales tax officers from doing their jobs or exercising their powers of control and inspection given by this Law.

Article (33)

 

Procedures, appeals and compoundments relating to misdemeanors:

(a) A person contravening the provisions of this Law shall be served a notice according to the procedures stated under this Law showing the fine imposed on him, which he is required to pay within 30 days of the date of notice.

(b) Penalty decisions made by virtue of Article (32) of this Law may be appealed to the Minister within the time limit stated under paragraph (a) above. The Minister may confirm, modify, cancel or mitigate the penalty as appropriate and upon reasonable grounds.

(b) The decision made by the Minister by virtue of paragraph (b) above may be appealed to the competent court within 30 days of the date of notice. The court may approve, modify or cancel the penalty as appropriate.

(c) The Director, or a person authorized by him, may agree to make an amicable settlement concerning the alleged misdemeanors set out in Article (32) of this Law in return for payment of the tax involved together with a penalty of not less than half the minimum limit and not exceeding half the maximum limit of the fines provided for in Article (32), prior to the issuance of a final court judgment. The settlement shall have the effect of ceasing any penalty proceedings, dropping of the case completely and the cancellation of any of the consequences resulting there from.

SECOND: Felonies and penalties thereof (criminal fraud) (Tax evasion offences)

Article (34)

 

The following acts shall be considered tax evasion:

(a) A delay in submitting the application for registration with the Department for a period exceeding 60 days from the end of the date prescribed for registration pursuant to Article (13) of this Law.

(b) Cancellation the registration of a taxable person, on his request, despite the fact that the person is still liable to registration in accordance with the provisions of this Law.

(c) Submitting a Return containing an underdeclaration exceeding (10%) or JD5000, whichever is lower, of the true value of taxable supplies of goods or services.

(d) Charging undue tax by any person unless the tax is remitted to the Department within the period prescribed by this Law or is remitted prior to the discovery thereof.

(e) Disposal of any of the tax-exempt goods or using them for purposes other than those for which they were exempted in a way contravening the provisions of Article (25) of this Law if that led to an underdeclared tax exceeding JD500.

(f) The attribution of rates or descriptions, or both, to taxable goods or services in contravention of the taxable rates and descriptions set out in this Law, if that led to an underdeclared tax exceeding JD500.

(g) Claiming a deduction or refund of tax in a manner that contravenes the provisions of this Law, where the excess deduction or refund exceeds JD500.

(h) Claiming a deduction or refund of tax on goods taken for personal use, or which were used in the production of goods that were taken for personal use where the amount of the deduction or refund does not exceed JD50.

(i) Submitting or issuing inaccurate documents or information, failure to submit or issue the documents required by this Law, postponing the submission or issuance of these documents on purpose to evade the tax if that resulted in an underdeclared due tax exceeding JD500.

(j) Submitting or issuing of forged or falsified documents with the intention of reducing the amount of tax properly due or claiming deductions or refunds in contravention of the provisions of this Law.

(k) Knowingly possession of taxable goods by a person for trading purposes where the tax on which has been evaded.

(l) Failure to pay the tax due on an imported service for a period exceeding 3 months of the due date prescribed under this Law.

Article (35)

 

 A person who commits any of the criminal tax fraud offences shall be liable to a civil compensation penalty to the  Department of not less than twice and not more than thrice the tax, and a criminal penalty of not less than JD200 and not more than JD1000. In case of recurrence for a second time, the criminal penalty imposed shall be doubled. If the offence recurs within one year thereafter, the court may impose the criminal fine at its highest limit, a term of imprisonment for a period not less than three months and not exceeding six months, or both.

Article (36) Compounding of tax evasion

 

The Minister or his deputy may arrange for a settlement of a case involving tax evasion against payment of the tax alleged to have been evaded, together with a penalty as civil compensation equivalent to the amount of tax involved before court proceedings are completed.

Settlement under this Article shall have the effect of dropping the case and ceasing any penalty proceedings, and the cancellation of any of the consequences resulting there from.