Raqeeb: Whistleblower Program for Tax Violations and Evasion.
On the final day of 2024, the Federal Tax Authority (FTA), UAE launched a new guide on the Raqeeb: Whistleblower Program for Tax Violations and Evasion.
The Federal Tax Authority (FTA) is responsible for the administration, collection, and enforcement of federal taxes in the United Arab Emirates. In its ongoing efforts to ensure compliance with the country’s tax laws, the FTA closely monitors taxable entities.
Raqeeb program
The purpose of the Raqeeb program is to raise community awareness, encourage adherence to tax regulations, and promote the reporting of tax irregularities.
Whistleblowing is a mechanism introduced by the UAE’s Cabinet of Ministers, mandating the FTA to receive and process
- leads relating to the non-compliance of natural or juridical persons with the tax legislation,
- to offer a monetary reward to informants when certain conditions are met.
To inspire all members of the society to report non-compliant business activities through Raqeeb, the UAE’s Cabinet of Ministers has decided to allow the FTA to pay monetary rewards to eligible informants.
Who is an ‘Informant’?
The term “informant” refers to any person who informs the FTA of a natural or juridical person who
- is conducting illegal activities in respect of tax, or,
- did not fulfil its tax obligations.
Rewards for Informant
An informant may be entitled to a monetary reward if, at minimum, all of the below conditions are met:
- The provided information is credible, accurate, and has not been obtained previously by the FTA.
- The whistleblowing form is filled out accurately, completely, and sufficiently.
- The FTA collected tax amounts that exceed AED 50,000.
- The reported person exhausted all forms of objections and appeals.
The amount of monetary rewards is directly proportionate to the amount of tax collected by the FTA as a result of the information and submitted lead.
Article 3.2 of guide also notify that the term “informant” excludes the following:
- FTA employees and their relatives up to the fourth degree of consanguinity.
- Persons who obtained information through their position in or connections with the FTA.
- Tax agents.
Review: https://accountingblogger.com/uae-corporate-tax-of-natural-persons/
UAE Corporate Tax of Natural Persons | Humayun Atif (CMA,CPA)
What is a ‘Lead’
Leads include information and documentation received from natural persons that may relate to natural and/or juridical persons in respect of the following:
- Suspected tax evasion, such as a registrant listing false information in their tax returns or a taxable person evading registering for tax, or
- Suspected non-compliance with tax laws and procedures, such as non-issuance of tax invoices, tax invoices not containing the correct amounts, non-collection of tax, or offering to charge a lower price (exclusive of VAT) if the recipient is willing to pay cash without receiving a tax invoice.
Final Words
Raqeeb: Whistleblower Program for UAE FTA Tax Violations and Evasion aims to support the FTA’s policy in raising community awareness and promoting compliance with relevant UAE tax legislation. It also encourages the reporting of any tax irregularities to ensure transparency and accountability.
ABOUT THE AUTHOR
Humayun Atif | CMA, CPA, CA (FIN), MS-IT, CA Articles from Big 4, Certified Forensic Accountant (USA), Six Sigma & Oracle Certified.
Atif is passionate about Business, Tech, and the written word. He is the author of the book ‘IFRS Made Easy’. He is a Tax and IFRS coach and the founder of accountingblogger.com
Excellent compilation.