Bahraini man, company to pay BD3m in unpaid excise taxes

TDT | Manama

Email: mail@newsofbahrain.com

A Bahraini man and his company have been ordered by the Court of Cassation to pay nearly BD3 million in unpaid excise taxes. The ruling comes after a two-year legal battle stemming from the importation of 465,431 units of electronic shisha devices and related products.

The Public Prosecution accused the defendant, between 2019 and 2021, of importing 123,860 pre-filled electronic smoking devices without paying the full excise tax, amounting to BD456,978.750. The prosecution alleged this was a deliberate attempt to evade taxes.

Tax evation

Furthermore, the defendant was accused of possessing and distributing 341,571 units of electronic shisha accessories without paying the corresponding excise tax of BD444,099, again with intent to evade taxes.

The second defendant, the man’s company, was also charged with tax evasion, as it is a legally registered entity operating in Bahrain, owned and managed by the primary defendant. The company facilitated the alleged tax evasion activities.

Verdict

Initially, the Lower Criminal Court acquitted the defendant. However, the Public Prosecution appealed the verdict. The High Appeals Court unanimously overturned the acquittal, ordering the defendant to pay BD456,978.750 in unpaid taxes and a fine of the same amount for the first charge.

For the second charge, the defendant was ordered to pay BD 444,099 in unpaid taxes and a fine of the same amount.