'Hidden Trade' Practices In Oman Are Fined Heavily, Aiming To Bolster Economic Stability
Category: Crime News

In a resolution issued by Oman's Ministry of Commerce, Industry and Investment Promotion, hefty fines are spelled out for 'hidden trade' practices.

First-time offenders will receive an administrative fine of OMR5,000 (about Dh47,700), escalating to OMR10,000 for repeat offenses, and tripling to OMR15,000 for third offenses.

This resolution is part of the government's proactive strategy to stem the effects of hidden trade practices, which have undermined the national economy and destabilized local markets.

Hidden trade can lead to a host of negative consequences, including commercial fraud, unfair competition, tax evasion, and circumvention of established procedures.

In addition to transferring revenues, profits, and contract proceeds to personal or unregistered accounts, hidden trade practices include providing inaccurate information or data during establishment setup or license applications, or giving expatriates absolute control over a facility to expatriates.

The resolution also introduces stricter measures for repeat violations. A second offence will not only carry a fine but also result in the suspension of the activity for three months.

A third violation will lead to a fine, along with the activity being removed from the commercial register for a year.

The introduction of the resolution is aligned with the Ministry’s goal of implementing the executive regulations of the Foreign Capital Investment Law. It aims to foster an attractive investment environment and conducive conditions for registering foreign institutions and companies.

The Ministry may deploy special teams to monitor establishments, conduct inspections, and take action against any violations identified in order to ensure the effective implementation of these measures.

Moreover, the public is encouraged to report any instances of hidden trade to the Ministry.

After its publication in the Official Gazette, the resolution, which is the result of repeated citizen appeals, will take effect 90 days later.

31 Jul, 2023 0 484
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