Business Owner Jailed for VAT Evasion After False Filings Exposed

TDT | Manama

Email: mail@newsofbahrain.com

In a case highlighting financial misconduct and regulatory violations, the High Criminal Court sentenced an Arab businessman to five years in prison, fined him BHD 247,559.551, ordered him to repay the same amount in evaded VAT, and ruled that he be deported after serving his sentence.

The case centered on the owner of a chain of grocery stores who was found guilty of evading value-added tax (VAT) by submitting false documents to the National Bureau for Revenue, and failing to maintain proper records of transactions and imports conducted in 2023.

According to prosecutors, the violations began in the first quarter of 2023. In his capacity as the owner of the business, the defendant deliberately failed to pay the VAT due within the legally specified timeframe. He also submitted inaccurate tax returns that omitted key revenue figures, with the intent of reducing the amount owed.

Investigations revealed a pattern of manipulation: the defendant unlawfully deducted VAT inputs, failed to issue tax invoices for taxable transactions, and did not maintain proper accounting records or documentation related to imports and services.

The case came to light following a complaint submitted through the “Tawasul” platform. A judicial officer visited the business branches and found that invoices issued did not reflect actual sales, and that some taxable transactions were not recorded at all.

The matter was then referred to the Financial Crimes and Money Laundering Prosecution, where a specialized tax evasion unit launched a full investigation. Authorities obtained access to the defendant’s financial records and confirmed that false submissions had been made to the revenue authority.

Despite being officially notified, the defendant failed to appear in court. After reviewing the evidence and testimonies, the court found him guilty of tax evasion and related offenses, concluding that he had intentionally avoided paying substantial VAT obligations.