Decision of the GTA President No. 8 of 2019 Regarding Penalties for Violating Obligations Related to the Application of the Common Reporting Standard (CRS)

Article 1 - Definitions

Article 2 - Financial Penalties

Article 3 - Implementation

The General Tax Authority President,

After perusal of the Income Tax Law promulgated by Law No. 24 of 2018, in particular paragraph 8 of Article 24 thereof; and

Minister of Finance Decision No. 17 of 2019 on the application of the CRS, in particular Article 7 thereof;

hereby has decided the following:

Article 1 - Definitions

In the application of the provisions of this Decision, the definitions contained in the aforementioned decision of the Minister of Finance, regarding the application of the CRS, shall apply.

Article 2 - Financial Penalties

In the cases indicated below, the financial penalty associated with each case shall be imposed:

Any reporting financial institution that fails to take appropriate measures to obtain a self-certification or other required information from the account holder shall be subject to a financial penalty of (20,000) twenty thousand riyals.
If requested by the reporting financial institution, every account holder or a related representative who refrains from submitting a valid self-certification shall be subject to a financial penalty of (10,000) ten thousand riyals.
Any reporting financial institution fails to file the report of the information on the financial accounts within the date specified in paragraph 4 of Article 4 of the aforementioned decision of the Minister of Finance regarding the application of the CRS, shall be subject to a financial penalty of (20,000) twenty thousand riyals.
Any reporting financial institution that files the report of the information on the financial accounts, including incomplete or false information, shall be subject to a financial penalty of (500) five hundred riyals for each incomplete or false information.
Any financial institution, person or intermediary that fails to provide the information and documents required by the competent authority, including records and documentary evidence, for the purpose of implementing the aforementioned decision of the Minister of Finance regarding the application of the CRS, within 15 days from the scheduled date, shall be subject to a financial penalty of (10,000) ten thousand riyals.
Any financial institution, person or intermediary that adopts practices aimed at circumventing the reporting and due diligence procedures prescribed in accordance with the standard and related commentaries shall be subject to a financial penalty of (500,000) five hundred thousand riyals.
Any account holder or a related representative that signs or confirms an incorrect self-certification shall be subject to a financial penalty of (500,000) five hundred thousand riyals.

Article 3 - Implementation

All competent authorities, each within its competence, shall implement the provisions contained herein. This decision shall be effective as of the date of its issuance and shall be published in the Official Gazette.

Signature Affixed

Ahmed bin Issa Al Muhannadi
General Tax Authority President

Issued on: 19/10/1440 AH
Corresponding to: 23/6/2019 AD

Contents

Article 1 - Definitions

Article 2 - Financial Penalties

Article 3 - Implementation

Signature Affixed