Tax Evasion Fine by GAZT in Saudi Arabia

Tax Evasion Fine by GAZT in Saudi Arabia: The taxpayer shall be subject to a fine of twenty five percent (25%) of the difference in tax resulting from the taxpayer’s or its certified accountant’s providing false information or from fraud with the intention of tax evasion, and particularly in the following cases:

1.Submitting false books, records, accounts or documents that do not reflect the true status of the taxpayer.

2.Filing a declaration on the basis of unavailability of books or records, and including therein information that contradicts Filing forged or fictitious invoices or documents, or changing of purchase or sale invoices or other documents with the intention of understating profits or overstating losses.

3.Not declaring one or more of the taxable activities.

4.Destroying or hiding books, records or documents prior to the Department’s examination.

Tax Planning, evasion and avoidance

Tax Evasion is the practice by the taxpayer whereby revenue results are understated to defeat at or lessen the amount for tax.

This is also known as “tax evasion.” Its an offence.

Tax avoidance is non declaration of income and non payment of due taxes, this is called “Tax avoidance”, it is called Tax

Avoidance and is an offence too.

Tax Planning is the exploitation/use by the taxpayer of legally permissible methods, Tax credits, tax rebates, tax reductions in order to avoid or reduce tax liability.

This is also known as “tax minimization.”

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