Introduction
The Raqeeb Whistleblower Programme, introduced by the Federal Tax Authority (FTA), provides a legal framework for reporting tax non-compliance, promoting transparency and accountability in the UAE’s tax regime, covering Excise Tax, Value Added Tax (VAT), and Corporate Tax (CT). By incentivizing informants with potential monetary rewards, the programme fosters public participation in safeguarding tax integrity.
Whistleblowing
The principal objective of the Raqeeb Programme is to bolster adherence to the UAE’s tax laws. This is achieved by:
- Encouraging the reporting of tax irregularities to the FTA.
- Ensuring violators are subject to legal prosecution and penalties.
- Promoting equity within the business community, ensuring all entities comply with their legal obligations.
- Fostering trust in the tax system by demonstrating that compliance yields greater benefits than evasion.
Objective
The principal objective of the Raqeeb Programme is to bolster adherence to the UAE’s tax laws. This is achieved by:
- Encouraging the reporting of tax irregularities to the FTA.
- Ensuring violators are subject to legal prosecution and penalties.
- Promoting equity within the business community, ensuring all entities comply with their legal obligations.
- Fostering trust in the tax system by demonstrating that compliance yields greater benefits than evasion.
Role of the Informant in Legal Terms
An informant, within the purview of the Raqeeb Programme, is defined as any person with substantial knowledge or evidence of tax violations by natural or juridical persons, including engaging in illegal tax-related activities or failing to meet tax obligations.
Leads encompass information and documentation obtained from informant, which may pertain to both natural and juridical persons. To qualify as a valid lead:
- The information must pertain directly to tax evasion or non-compliance.
- Adequate evidence must accompany the report.
- Leads previously rejected can be resubmitted only if new, credible evidence is provided.
Legal Safeguards for Confidentiality
The Raqeeb Programme is underpinned by strict legal safeguards to protect the identity and interests of informants. Confidentiality is maintained through several key measures:
- Identity Disclosure: Informants are required to disclose their identity during submissions. However, the FTA guarantees this information remains confidential and inaccessible to unauthorized parties, including the reported natural or juridical person.
- Non-Disclosure Agreements: Informants sign a legally binding non-disclosure agreement (NDA) to protect sensitive information.
- Limited Updates: To safeguard the integrity of investigations, informants are not provided with detailed updates regarding the case’s progress.
Entitlement to Monetary Rewards for Informants
The Raqeeb Whistleblower Programme includes provisions for monetary rewards to incentivize credible reporting. The reward is calculated based on the tax revenue recovered as a result of the whistleblowing lead.
Conditions for Eligibility: An informant may qualify for a monetary reward if the following conditions are cumulatively satisfied:
- The information submitted is credible, accurate, and previously unknown to the FTA.
- The whistleblowing form is filled out completely, accurately and sufficiently.
- The reported violation results in the collection of tax revenue exceeding AED 50,000.
- The reported entity has exhausted all legal avenues of objection and appeal against the tax assessment.
Exclusions from Eligibility: The following categories of persons are expressly excluded from receiving monetary rewards:
- Employees of the FTA and their relatives up to the fourth degree of consanguinity.
- Persons who obtained the reported information through their role or connections within the FTA.
- Tax agents operating within the UAE.
Raqeeb Whistleblowing Process
- Access: Visit the FTA website, select ‘RAQEEB,’ and click ‘Start Service.’
- Agreement: Accept the non-disclosure agreement.
- Form Completion: Provide applicant details, reported person’s information, violation details, and supporting evidence.
- Submission: Submit the form and receive a confirmation email with a reference number.
- Review: The FTA reviews the lead and may request additional details, to be provided within 30 days.
- Reward Process (if eligible): If eligible for a monetary reward, the FTA will notify informant via email. Informant must provide identification (Emirates ID or Passport) and bank details (including IBAN, SWIFT, and supporting documents) through the Raqeeb portal.
In a nutshell, the Raqeeb Whistleblower Programme serves as a crucial tool in promoting tax compliance and transparency in the UAE. By empowering informants with the ability to report tax violations confidentially and potentially earn monetary rewards, the programme fosters a culture of accountability. It encourages everyone to play a role in ensuring fair business practices while helping safeguard the integrity of the UAE’s tax system.
