As a rule, offenses concerning the Income Tax Ordinance and the Value Added Tax Law are referred to as “tax offenses”, as there is distinction between technical tax offenses and material tax offenses. The difference between the types of offenses is the criminal intent at the base of committing the offense.
Technical tax offenses are more common and include offenses such as failure to file an annual report or annual financial statements or declaration of capital on time, or failure to transfer taxes deducted pursuant to the Income Tax Ordinance and failure to withhold at origin.
Material tax offenses are more severe and include tax evasion, omission of income, false bookkeeping and filing false reports. Offenses concerning the Customs Law and the Customs Ordinance include failure to report of funds or products upon entering the country and which are required to be reported to the Customs Authorities and payment of import duties.