Court Sentences Business Owner for VAT Evasion in Bahrain

The Head of the Tax Evasion Crimes Unit at the Financial and Money Laundering Crimes Prosecution announced that the First High Criminal Court has issued its ruling in a case involving a business owner accused of evading Value Added Tax (VAT) on services provided by his company.

The accused collected VAT from customers but failed to remit it to the National Revenue Authority (NRA). The court sentenced the individual to three years in prison and ordered him to pay the outstanding tax amounting to BHD 65,102.68, along with a fine equal to the tax due.

In addition, the court imposed a fine of BHD 195,306.204 on the company’s commercial registration, recognizing the legal entity’s participation in the offense.

The Tax Evasion Crimes Unit had received a complaint from the NRA against the company owner, who had submitted tax declarations without paying the collected VAT, in clear violation of the law. Investigations by the NRA confirmed that the company was registered for VAT purposes and that the owner had filed declarations without remitting the collected tax.

Following the complaint, the Public Prosecution promptly initiated an investigation, issued a travel ban on the suspect, and collected testimonies from NRA specialists along with documents proving the crime. The accused was interrogated and admitted to the charges.

Based on the evidence, the Public Prosecution referred both the individual and the company (as a legal entity) to the First High Criminal Court, which subsequently issued the ruling.