Penalty Table
| Offence | Penalty |
|---|---|
| Late VAT return filing | BD 500 – BD 5,000 |
| Late payment of VAT | 5% of unpaid tax per month |
| Incorrect return (negligence) | BD 500 – BD 10,000 |
| Failure to register | BD 1,000 – BD 10,000 |
| Tax evasion | 3x–5x the tax + criminal prosecution |
| Failure to keep records | BD 500 – BD 10,000 |
✅ Mitigation Strategies
Voluntary disclosure before audit. Demonstrate reasonable care. Engage professional advisor. Pay outstanding tax immediately. Maintain comprehensive records. Implement internal controls.