New system launched to detect tax dodgers

New system launched to detect tax dodgers
Set to go into effect in early 2019, the system seeks to combat tax evasion and commercial fraud.

dubai - It will use digital tax stamps to ensure excise tax on tobacco products has been paid



By Staff Report

Published: Sun 6 May 2018, 6:59 PM

Last updated: Sun 6 May 2018, 9:07 PM

The Federal Tax Authority (FTA) has announced launching a new electronic tracking system which uses digital tax stamps to ensure excise tax on tobacco products has been paid.

Set to go into effect in early 2019, the system seeks to combat tax evasion and commercial fraud, supporting the FTA's efforts to successfully implement excise tax systems and verify payment of excise tax on tobacco products.

An awareness meeting was headed by FTA director-general Khalid Ali Al Bustani and attended by local and international producers and importers of tobacco, along with representatives from the Authority and the global company that operates the system, which specialises in manufacturing digital tax stamps for tobacco products.

"The authority has made great progress in implementing the new system based on best international standards," Al Bustani noted.

"The system will include integrated electronic tracking mechanisms at customs and across the supply chain around the UAE. It is set to be rolled out in the near future in coordination with the customs departments, as well as economic development departments and manufacturers and importers of tobacco products."

The FTA director-general urged all companies operating in the tobacco manufacturing and supplying sector - which are subject to excise tax - to comply with the new system and its requirements, and to cooperate with the authority to implement it and ensure widespread compliance with UAE tax laws and regulations to avoid administrative penalties.

The UAE has implemented a world-class tax system, Al Bustani explained.

- business@khaleejtimes.com


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