Tax compliance brings justice, fairness to markets 
Hamoud Al-Harbi, spokesman for the Zakat, Tax and Customs Authority, confirmed that the authority is keen to provide an attractive environment in the Kingdom for traders and investors in various business sectors by ensuring fair competition in the markets through enhancing the commitment of taxpayers to all zakat, tax, and customs systems and regulations.
Al-Harbi explained that taxpayers’ compliance with tax payments encourages investors, businessmen, and entrepreneurs to expand their businesses in the Kingdom, which would lead to a diverse economy in line with the Kingdom’s Vision 2030. It will also contribute to the sustainability and development of the national economy.
Al-Harbi has sent a strong message to taxpayers to comply with tax payments and take advantage of the services and guidelines provided by the authority’s website, which offers more than 130 guidelines to educate taxpayers about the procedures and services provided by the authority.
These guidelines and services aim to enhance taxpayers’ compliance with tax payments, especially since the guidelines include a detailed explanation of zakat, tax, and customs concepts and their requirements. In addition, the guidelines provide several explanations and clarifications that are of interest to taxpayers.
It is important to note that the authority daily checks and monitors tax operations and confronts any cases of tax evasion by applying regulatory procedures against evaders. The authority also imposes penalties on tax evaders as stipulated in the value added tax and selective tax systems.
The most prominent forms of tax evasion include submitting incorrect data, such as fabricating purchase invoices or modifying invoice data to reduce the tax amount. Another form of tax evasion is submitting incorrect and unreliable declarations to reduce the tax amount.
Tax evasion is a serious crime in Saudi Arabia, and the authority is actively engaged in combating such behavior by enforcing compliance and implementing strict penalties for those who attempt to evade taxes.
Violators who submit false documents to evade tax payment or reduce VAT due, or unlawfully obtain refunds for tax, are subject to penalties of at least the amount of the VAT due, up to three times the value of the goods or services subject to the evaded tax. If the same violation is repeated within three years from the date of the violation, the penalty can be doubled.
The authority has appealed to the public to report any tax evasion cases as a national duty and a matter of honesty, noting that the authority, according to specific controls, provides incentive rewards to those who report violations at a rate not exceeding 2.5 percent of the amount of violations and fines, with a maximum of SR1 million ($266,000) and a minimum of SR1,000.
The Zakat, Tax and Customs Authority was established for the purpose of collecting zakat, taxes, and customs duties while achieving the highest level of taxpayer compliance possible in accordance with best practices.
The authority is also responsible for organizing and managing all activities connected to ports and customs operations to achieve the highest level of compliance, productivity, and competitiveness. This aims to assist the Kingdom in developing into a significant global logistics hub by promoting trade and maintaining national security.
According to the Tax Justice Network, tax evasion by companies and individuals costs countries globally $427 billion annually.
Tax evasion is a serious crime in Saudi Arabia, and the authority is actively engaged in combating such behavior by enforcing compliance and implementing strict penalties for those who attempt to evade taxes.
By doing so, the authority will ensure that the Kingdom’s business environment is trustworthy for local and international investors, resulting from maintaining tax compliance and integrity.
• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
