Reconciliation in Tax Evasion Crimes – Article 23 – Federal Tax Procedures Executive Regulations

Article 23 – Reconciliation in Tax Evasion Crimes

1. Prior to initiation of a criminal case, the Authority may reconcile in Tax Evasion crimes and deliberate failure to settle Administrative Penalties in return for full settlement of Payable Tax and Administrative Penalties.

2. Prior to initiating a criminal case, the Authority may reconcile in Tax crimes stipulated in Clause 4 of Article 25 of the Decree-Law, after the settlement of an amount of (50,000) fifty thousand Dirhams. If any of these crimes resulted in Tax Evasion or facilitated or concealed Tax Evasion, reconciliation shall be made by paying the amount set forth in Clause 1 of this Article.

3. The public prosecution may, after initiating the criminal case, during the investigation and trial phase and before the issuance of a conviction judgment and after seeking the opinion of the Authority, reconcile in Tax crimes in return for the following amounts:

   1. Full Payable Tax and Administrative Penalties, in addition to an amount equal to (50%) fifty percent of the evaded Tax in the crimes stipulated in Clause 2 of Article 25 of the Decree-Law.
   2. Full Payable Tax and Administrative Penalties in addition to an amount equal to (50%) fifty percent of the evaded Tax if applicable, in the crime of deliberate failure to pay Administrative Penalties stipulated in Clause 3 of Article 25 of the Decree-Law.
   3. An amount of (100,000) one hundred thousand Dirhams for each of the crimes stipulated in Clause 4 of Article 25 of the Decree-Law. If any of these crimes resulted in Tax Evasion or facilitated or concealed Tax Evasion, reconciliation shall be made by paying the amount set forth in paragraph (a) of this Clause.

4. The public prosecution may, after issuance of a conviction judgment, and after seeking the opinion of the Authority, reconcile in Tax crimes in return for the following amounts:

   1. Full Payable Tax and Administrative Penalties, in addition to an amount equal to (75%) seventy-five percent of the Tax evaded in crimes stipulated in Clause 2 of Article 25 of the Decree-Law.
   2. Full Payable Tax and Administrative Penalties in addition to an amount equal to (75%) seventy-five percent of the evaded Tax if applicable, in the crime of deliberate failure to pay Administrative Penalties stipulated in Clause 3 of Article 25 of the Decree-Law.
   3. An amount of (200,000) two hundred thousand Dirhams for each of the crimes stipulated in Clause 4 of Article 25 of the Decree-Law. If any of these crimes resulted in Tax Evasion or facilitated or concealed Tax Evasion, reconciliation shall be made by paying the amount set forth in paragraph (a) of this Clause.

5. If more than one of the acts stipulated in Clause 4 of Article 25 of the Decree-Law were committed for a single purpose, and they were indivisibly linked to each other, reconciliation for all of these acts shall take place in return for settlement of the amount set forth in paragraph (c) of Clause 3 or paragraph (c) of Clause 4 of this Article, as applicable.