MUSCAT: Tax evasion, as explained by Kifah Al Lawati, occurs when obligated taxpayers fail or deliberately avoid paying taxes owed to the government. She highlighted the covert methods used in tax evasion, which often involve fraudulent activities.

Kifah Lawati provided insights into the various tactics utilized by tax evaders, including the intentional omission of tax declarations for income, value-added tax (VAT), or excise. Additionally, she revealed how individuals inflate expenses to reduce taxable income, conceal certain business activities to evade taxes, and fail to declare all bank accounts used for business transactions.

“They will inflate the expenses to show less amount of taxable income, hiding some of the business activities and not showing them as a revenue…” she stated.

Emphasizing the importance of segregating personal and business accounts, Kifah Lawati cautioned against mixing transactions, as this could complicate tax compliance efforts. She urged individuals to utilize dedicated business accounts and ensure their proper declaration in tax returns to mitigate the risks associated with tax evasion.

The latest episode of ‘Insider’ features Said Ahmed Al Shanfari, Director-General, Second General Directorate of Taxation at Oman Tax Authority and Kifah Al Lawati, in conversation with Nishad Padiyarath, CEO of TAS.

https://youtu.be/bmA537aDZDc?si=czul-Vz0cr8xh5ic