Two companies were charged a hefty fine for hiding the company’s income and engaging in tax evasion through dishonest means.
Two contracting-related businesses have been fined QAR 24 million for engaging in illegal tax evasion activity, authorities announced.
The General Tax Authority’s (GTA) Revenue Protection Team identified cases of tax evasion by a number of people and businesses, a statement confirmed.
In addition to penalties and fines outlined by Qatari law, the authorities referred the businesses to the public prosecution for legal action. They are now working to recover the amounts evaded, which came to a total of QAR 24 million.
The first company and its authorised signatory partner (an Arab national), acting in his capacity as the CEO and legal representative of the company, have both been found guilty and fined QAR 500,000 for concealing the company’s true income.
The company must also pay the claimed tax amounts, which come to QAR 19 million, according to the court’s decision.
The second company was also found guilty in court, and one of its authorised signatories, also an Arab national, was given a one-year sentence. After serving their sentence, the defendant will be deported.
The defendant was accused of avoiding GTA registration, hiding the company’s income, and engaging in tax evasion through dishonest means. One million Qatari riyals were assessed as a fine against the second company for hiding its true income.
A major obstacle globally
Tax evasion is a major obstacle to tax systems around the world.
Authorities warned such criminal activities harm national economies, jeopardise equality and fair opportunities for taxpayers, and reduce the competitive advantage of businesses that comply with the law.
The GTA also reaffirmed its commitment to halt tax evasion and prosecute those responsible for such crimes.