Three Defendants Sentenced to 3 years in Prison in Tax Evasion Case

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Bahrain: The First High Criminal Court has convicted three defendants in a value-added tax (VAT) evasion case, sentencing each of them to three years in prison and ordering them to repay the unpaid tax amount of 83,020 dinars. The court also imposed a financial penalty on each defendant equal to the value of the evaded tax.

In addition to the individual sentences, the court ruled that the company involved in the case must pay a fine of 498,121 dinars, after finding that the tax evasion was carried out in the name of, and for the benefit of, the company as a legal entity.

The ruling followed a case referred by the National Revenue Authority, which reported that the defendants had collected VAT from customers but failed to transfer the amounts to the authority, despite submitting tax declarations.

The Financial Crimes and Money Laundering Prosecution stated that investigations confirmed the defendants retained the collected tax beyond the legally permitted period, in breach of VAT regulations.

The three defendants admitted to the violations during questioning, and the court subsequently issued the prison sentences and financial penalties in line with the proven offences.