Article 17 - The right of the Authority to perform a Tax Audit

Article (17)

The right of the Authority to perform a Tax Audit

1. The Authority may perform a Tax Audit on any Person to verify the extent of that Person’s compliance with the provisions of this Law and the Tax Law.

2. The Authority may perform the Tax Audit at its office or the place of business of the Person subject to the Tax Audit or any other place where such Person conducts Business, stores goods or keeps records.

3. If the Authority decides to perform a Tax Audit at the place of Business of the Person subject to the Tax Audit or any other place where such Person conducts his Business, stores goods or keeps records, the Authority shall inform him at least five business days prior to the Tax Audit.

4. By way of exception to Clause (3) of this Article, the Tax Auditor has the right of entry to any place where the Person subject to the Tax Audit conducts his Business, stores goods, or keeps records, and as the case may be, it will be temporarily closed in order to perform the Tax Audit for a period not exceeding 72 hours without prior notice in any of the following cases:

a. If the Authority has serious grounds to believe that the Person subject to the Tax Audit is participating or involved in Tax Evasion in respect to this Person or another Person;

b. If the Authority has serious grounds to believe that not temporarily closing the place where the Tax Audit is conducted will hinder the conduct of the Tax Audit;

5. If the Person who has been given advance notice of the Tax Audit under Clause (3) of this Article attempts to hinder the Tax Auditor’s access to the place where the Tax Audit is to be performed. In all cases provided for in Clause (4) of this Article, the Tax Auditor shall obtain the prior written consent of the Director-General; and if the place to be accessed is a place of residence, then a permit from the Public Prosecutor shall also be obtained.

6. Places closed under this Article shall be reopened after the lapse of 72 hours, unless the Authority obtains a permit from the Public Prosecutor to extend the closure period for a similar period prior to the expiry of the preceding 72 hours.

7. A criminal case may be initiated only upon an application from the Director-General.

8. The Executive Regulation of this Law shall determine the necessary procedures related to the Tax Audit.