FTA Launches Whistleblower Programme

In April 2022, Federal Tax Authority (FTA) launched a new programme Raqeeb, “whistleblower system for violations and tax evasions”. As UAE always aims to ensure tax compliance and regulations, therefore this programme was launched to continuously monitor the tax compliance.

The purpose of Raqeeb initiative is to:

– Increase tax awareness in the UAE
– Report any tax violations
– Increasing compliance with tax legislations
– Increasing the effectiveness of tax audits and minimizing the cases of tax evasions
– Prosecuting non-compliances with tax legislation and charging penalties or tax fines on them.

FTA has also announced a monetary reward to informants in order to encourage reporting of any non-compliance in the UAE. Monetary reward will only be given when certain conditions are met. Furthermore, FTA has published a detailed guide for informants to give them information about the programme and process of submitting a whistleblower form. Check the guide on Raqeeb programme here.

Who are qualified as informants?

– An informant is an individual who takes the responsibility to inform FTA regarding any non-compliance of tax or highlight any other illegal tax activities.

– Informants cannot report non-compliance activities with an anonymous identity. However, FTA ensures to keep the informant’s identity confidential and secure with FTA.

– It is mandatory for the informant to sign a non-disclosure agreement (NDA) when submitting the lead to ensure the protection of any confidential and sensitive information including information on monetary rewards.

– The informant term excludes FTA employees and their relatives up to the fourth degree of consanguinity, as well as other persons who obtained information through their position in or connections with the FTA.

Conditions for Monetary Reward

FTA specifies certain conditions under which they will give monetary reward to informants. These conditions are as following;

– The information provided is credible and not obtained by FTA previously
– The whistleblowing form is filled accurately and completely;
– The tax amounts collected from the reported business exceed AED 50,000;
– The reported person has exhausted all forms of objections and appeals.

After scrutinising the provided information by the informant and collecting the tax from the reported person, FTA will deposit the reward to the informant’s bank account. The monetary reward is directly proportional to the amount of tax collected by the FTA.

Globally, tax authorities have become more vigilant and enforcing strict tax laws to ensure tax compliance. Also, the Raqeeb initiative is a great step by the UAE tax authority that will create a significant impact on the business world. UAE hopes to create a prosperous business environment and implement tax laws according to global standards.

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