Bahrain: FAQs on conciliation used to resolve VAT evasion cases

As part of the conciliation process, the VAT liability (and penalty amount) must be paid.

As part of the conciliation process, the VAT liability (and penalty amount) must be paid.

The National Bureau for Revenue (NBR) released guidance in the form of “frequently asked questions” (FAQs) regarding the use of conciliation to settle allegations of value added tax (VAT) evasion.

Under the VAT law, a person (or agent) accused of VAT evasion may submit an application to the Ministry of Finance for conciliation.

Conciliation is essentially a settlement between the NBR and the VAT-payer (a settlement that takes place outside of criminal proceedings). As part of the conciliation process, the VAT liability (and penalty amount) must be paid.

If the application for conciliation is accepted, then the criminal proceedings are terminated. If the conciliation application is rejected, the criminal proceedings may resume.
 

Read a September 2021 report [PDF 41 KB] prepared by the KPMG member firm in Bahrain

 

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