As many as 7,492 instances of customs duty evasion have been reported in the first quarter of this year involving imports of goods worth more than SR672 million.
In a statistical report the Customs Department said the government lost SR111 million in revenue as a result of the fraud.
The total value of goods cleared by the customs during the period was SR928 million, but after scrutiny it was discovered that goods worth more than SR1.6 billion had actually been imported, which is a difference of SR672 million, the report said.
As a result of big difference in evaluation of goods imported, some companies have evaded payment of SR111 million in customs duty, it added.
Referring to revenue received by the department, the report said it amounted to SR4.7 billion in the first quarter while the amount received in the form of fines totaled more than SR20 million. “We imposed these fines on companies that violated customs regulations,” the report said.
In a previous report, the department said the total value of goods involving non-payment of customs duties in 2017 reached SR2.89 billion, resulting in a loss of SR437 million in revenue.
The total value of goods allowed to import in 2017 was SR3.5 billion. “But after scrutiny we have found that the actual value of the imported goods amounted to SR6.4 billion, thus discovering a difference of SR2.89 billion, leading to a loss of SR437 million in customs duty,” the department said.
Speaking about the customs revenue in 2017, the report said it amounted to SR23.8 billion, which was 9.41 percent less than the revenue earned in 2016 when the amount reached SR26.3 billion.
The total value of fines collected in the same year reached more than SR67 million, the report said, adding that the fines were imposed on companies and agencies that violated customs regulations.
The department said it would inspect companies, clearance offices and importers to check violations such as bill manipulations to evade tax or customs duty.
Violators will be slapped with fines ranging from SR500 to SR5,000 and imprisoned for up to two years. "Their licenses may also be revoked," said Mazin Al-Zamil, deputy general manager for revenue affairs in the Customs Department.
Punishments for tax evasion are of three types. If goods are tax free, the fine will be no less than 10 percent of the value of goods, he explained.
For taxable goods, the fine will be double the tax amount but not more than the value of goods. For highly taxable goods such as cigarettes, the fine will be double the tax amount but not more than twice the value of goods.
In all cases, violators will face one month to one year in prison.
The department will check the accuracy of the financial value of deals and ensure that all procedures adhere to customs regulations.
SOURCE : SAUDIGAZETTE
