The legal framework to confront the increase in fraud and tax evasion crimes In the Kingdom of Saudi Arabia “A Comparative Study”

Ashraf Mitwalli

Criminal Law - Faculty of Law - Cairo University

Abstract

The Kingdom of Saudi Arabia has ratified the "Unified VAT Agreement for the Countries of the Cooperation Council for the Arab Gulf States" according to the Royal Decree No. (M / 51) dated 05/03/1438 AH, and based on the provisions contained in that agreement, the Kingdom issued the VAT system according to the decree Royal Decree No. (M / 113) dated 11/02/1438 AH, and the executive regulations of the system were issued according to the decision of the Board of Directors of the General Authority of Zakat and Income No. 3839 and date of 12/14/1438 AH. In view of the relative modernity of the system and the emergence of the added tax, a significant obstacle has emerged facing those involved in the application of the tax, which is the relative decline in the level of tax awareness among individuals and institutions addressed to the provisions of the tax system, especially "taxpayers", which constitutes an obstacle to investment, especially in developing countries. Realizing the legality of the tax obligation, the accuracy of financial policies, and the strength and enforcement of the tax system, will motivate some to make a sound investment decision while reducing the possibilities of evading or resisting and contesting the tax, and therefore this situation is optimal for both "obligor and for financial policy makers". But the legality of the tax system, and the accuracy of financial and seriousness of policies, and the power of law enforcement cannot be achieved without incision penalty facing cases of fraud and tax evasion, achieve deterrence of both types, and guarantees an obligation in the tax base legal objectively, as well as the existence of precise procedures and systematic ensure the application of the provisions substantive criminal law and tax effective and correct, it gives the confidence of national and foreign investor in the investment climate and the rule of law, and this is the most important roles of the criminal law works in stimulating investment.

Keywords

"investment" "VAT" "Tax" "tax system" "Business Criminal Law"