UAE FTA launches “whistleblower” program for tax offenses and tax evasion starting April 15


ABU DHABI- The Federal Revenue Authority (FTA) has announced the launch of Raqeeb, the “Tax Violations and Evasion Reporting Program”, which aims to promote community control in local markets, raise the level of tax compliance in the UAE and reduce instances of tax evasion.

As of Friday, April 15, 2022, in accordance with the Cabinet decision regarding the implementation of the tax offenses and evasion whistleblower program, which allows the Authority to receive reports from individuals on cases of tax evasion tax, tax evasion, and violations of tax laws. It also allows the Authority to verify reports and award monetary rewards to informants when certain conditions are met.

In a press release issued today, the AMF explained that the Tax Abuse and Fraud Reporting Program aims to improve business transparency and competitiveness, increase tax compliance rates and enhance tax awareness and society’s confidence in the tax system. . The program also motivates individuals to assume their social responsibilities and contribute to the fight against tax crimes. The program grants informants monetary rewards if the report leads the Authority to collect tax amounts worth more than AED 50,000.

The Authority called on all members of the community to join in the efforts through the program, which provides a simple and clear mechanism for reporting tax violations. Reporting information can be submitted via the Authority’s website, which also includes a comprehensive guide to the program, reporting procedure, criteria and mechanism for obtaining monetary rewards for reporting, as well as other introductory, legal and procedural issues related to the program.

The Authority affirmed that the mechanism for reporting tax offenses adheres to the highest standards of confidentiality, ensures that the identity of informants is not disclosed to any party and provides them with full protection and immunity to ensure that they are not exposed to any damage consequences for the exercise of their social responsibilities by reporting illegal practices.

Khalid Ali Al Bustani, Director General of the Authority, underlined that the program of reporting tax offenses and evasion is in line with the guidelines of the wise leaders to implement the tax system according to the highest standards which stimulate the growth of the national economy. , ensure transparency and maintain economic momentum by providing a legislative environment that encourages self-compliance, and keep pace with change through the continued publication of rulings in accordance with interim requirements.

“By implementing the Tax Abuse and Whistleblower Program, the Authority strives to give all segments of the community the opportunity to contribute to regulatory efforts, help protect markets and public funds against tax evasion, promote compliance by all taxpayers and prevent illegal practices,” added SE.

“The program helps to strengthen the concept of community partnership to reduce harmful practices in local markets and help protect the UAE’s financial resources. Tax evasion is one of the most significant challenges facing tax systems around the world. face, given that it is an illicit practice that is detrimental to economic systems, and tackling these practices requires joint efforts by government and society.”

The Authority confirmed that the new program will improve the efficiency of tax collection, increase tax awareness and strengthen society’s confidence in the tax system.

The program also ensures that the tax system is implemented fairly, without evasion or fraud, and reduces the length of investigations related to cases of tax evasion and violations of tax laws, by providing additional evidence on which the Authority can rely on its procedures to ensure the accuracy of tax collection and ensure greater efficiency of audits, thus curbing tax evasion.

The Authority explained that under the program, the Authority can use the information provided by the informant to detect offenses and tax evasion, determine the procedures for approving monetary rewards and the powers to grant these rewards, and determine the procedures and conditions that must be followed. .

The Authority may also set requirements which must be met in respect of any information provided by the informant; including evidentiary, verification and documentation requirements, and other conditions and requirements necessary to administer or implement the whistleblower program for tax offenses and tax evasion.

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