A whistle-blower program for tax evasions and violations, presently known as Raqeeb, has been declared by the Federal Tax Authority (FTA) in UAE.

Effective from April 15^th, 2022, it is in line with the Cabinet Decision concerning the implementation of the program for tax evasion and violations. It gives access to the authority to acquire reports related to any individuals involved in tax evasion cases, any fraud related to tax as well as any violations under tax legislation.

Everything you need to know about the FTA whistle-blower program.

Mission & Aim of the Raqeeb Program
Significance of the Program
Benefits or Advantages of Raqeeb for Tax Evasion & Violations in UAE
Functioning of the Program
Which Tax Violations & Evasions Does Raqeeb (Whistle-Blower Program) Apply to?
Role of Authority in Regards to Information Provided by Informant?

What is the Aim of Raqeeb in Regards to Tax Evasions & Violations?

The aim of Raqeeb is to reduce the tax evasion cases, maintain and raise the level of tax compliance in the UAE, as well as obtain better and systematic control of local markets.

What is the Importance of the Raqeeb Program?

Tax systems face some significant challenges around the world, with tax evasion being the biggest among them, as it is an illicit practice that is harmful to a country’s economic systems, thus, becoming necessary to curb such practices requires a joint effort from both the government and society.

The whistle-blower program-Raqeeb serves to strengthen transparency and dynamic competitiveness in business in the UAE, increasing rates of tax compliance and encouraging tax awareness and confidence among the society regarding the tax system.

Read also: Your guide to Commercial Activities Certificate under VAT in the UAE

Advantages of the Raqeeb Whistle-Blower Program:

Brings about transparency and strengthens dynamic competitiveness in business.
Gives an opportunity to all segments of the community to commit and contribute to regulatory endeavors.
Protects local markets as well as funds of the public from tax evasions.
Expediates compliance among all tax-payers and can put a stop to illegal actions.
Helps protect the financial resources of the UAE and lessen the illegal and harmful practices that are carried out in local markets.
Increase the effectiveness of the collection of tax.
Raise tax awareness and boost society’s belief in the country’s tax system.

How Does the Raqeeb Program Work?

The Authority encourages all residents of the community to participate in the efforts through the program, which establishes an easy and clear mechanism for reporting tax violations and evasions.

Interested parties can report information through the Authority’s website, which also includes an extensive guide on the how’s and why’s of the program such as how to report, the criteria and process for receiving monetary rewards, and other legal and procedural information related to the program.

The Authority goes on to clarify that the method for reporting tax violations is fully compliant with the highest confidentiality standards, ensures that the identity of informants is not exposed to any party, and provides them with complete protection and immunity to ensure that they do not face any adverse consequences for performing their social responsibilities through reporting illegal practices. The informants or complainants also need to sign a non-disclosure agreement.

Aside from this, the program ensures that the tax system is being implemented fairly, without fraud or evasion, and reduces the length of time needed in investigating reports of tax evasion and tax law violations, by providing additional evidence that the Authority can use in its procedures so that accurate tax collections are made and audits are more effective, ultimately reducing tax evasion.

Which Tax Violations and Evasions Does Raqeeb Apply to?

The whistle-blower program (Raqeeb) introduced by the Federal Tax Authority (FTA) applies to only excise tax and value-added taxes (VAT) at the moment. However, this program could hold more implications with the introduction of UAE’s Corporate Tax regime in 2023.

Our Community Members That Report Tax Violations Rewarded?

Any community member or informant whose report leads the authority in collecting tax amounts that are worth more than AED 50,000 receives monetary rewards.

What Does the Authority Do with the Information Provided by the Informant?

Under the Raqeeb whistle-blower program:

Authority may utilize the information given by the informant to determine and detect any tax evasions and violations.
Establish procedures for ratifying or sanctioning monetary rewards
Determine the procedures and terms and conditions that must be adopted.
Set requirements concerning the information provided by the informant such as the need for proof, verification as well as documentation.
Requirements essential for the implementation of the program for tax evasions and violations.

Final Thoughts

The Whistle-blower program for tax evasions and violations- Raqeeb in the UAE is necessary to curb the crimes related to tax and provides a judicial and law-abiding environment that supports adherence and conformity.

It also helps authorities keep up-to-date with changes by the issuance of continual decisions consistent with the provisional (short-term) requirements such that the tax system can operate effectively and steer economic growth.

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