The authorities have closed down a company that evaded huge amounts of tax in Dubai. An embezzlement of 91 million dirhams was found. 54 lakh cigarette packets without tax stamps were seized from the company.
The tax evasion in the tobacco products handling company was caught in a joint inspection by the Federal Tax Authority and Dubai Police. UAE national media reports that tax evasion of 9,18,33,016 dirhams was found here.
With this, the authorities ordered the closure of the institution immediately. The UAE Federal Tax Authority, in cooperation with the Criminal Investigation Department of Dubai Police, was conducting an intensive investigation to detect tax evasion.
Last year, the UAE introduced a digital tax system for tobacco products. According to this, tobacco products that do not bear the digital stamp of payment of tax should not be sold in the market. This month, 2,202 inspections were conducted and 281 violations were found. The authority had earlier informed that fraud of 46 lakh dirhams had been detected.