Wednesday 21 / August / 2024
Muscat: An administrative fine up to OMR 15,000 will be levied on people practising hidden trade in the Sultanate of Oman.
The Ministry of Commerce, Industry and Investment Promotion (MoCIIp), issued Ministerial Decision No.412/2023 to eliminate hidden trade in the Sultanate of Oman.
The decision comes as follows:
Article 1: ‘Hidden trade’ is defined as an activity being practised by a person that the laws and royal decrees in force in the Sultanate of Oman do not allow him to practise, whether on his own account or in association with others.
‘Activity’ refers to commercial, industrial, professional, craft, tourism or other economic activities.
A ‘Concealed Person’ is someone who practices hidden trade.
Article 2: The Ministry is responsible for encouraging citizens and residents by advertising and their right to contribute to limiting cases of hidden trade and reporting them. The Ministry has the right to take the measures it deems appropriate in order to implement the provisions of this article.
Article 3: The implementation of this decision shall be in accordance with the mechanism specified by the Ministry, taking into account the nature and size of each activity, subject to the provisions of this decision.
Article 4: No person may engage in an activity that the laws and royal decrees in force in the Sultanate of Oman do not allow him to practise, whether directly or indirectly.
Article 5: It is prohibited to carry out hidden trade, whether by using the name of the concealed person, his commercial registration, the license issued to him, or any other method.
Article 6: One of the following cases is a presumption of concealment (hidden trade):
1. The establishment’s revenues, profits, or proceeds of contracts concluded, directly or indirectly, be transferred to a personal account or another account, and not to the establishment’s account. Anybody else apart from owner of the establishment receiving the proceeds of the sale or transfer of assets or liquidation of the establishment for his personal account, or obtaining a return or variable financial compensation of any kind that is not commensurate with the nature of the work entrusted to him to perform in the establishment, taking into account the work contracts that determine the right of the worker to obtain a percentage of the profits or revenues of the establishment.
2. Submitting incorrect data or information in the foundation documents of the establishment, in the application for obtaining a license, or in the accounts of the establishment, or concealing the true financial position of the establishment in any way.
3. The owner of the facility grants the expats powers that lead to absolute disposal of the facility.
4. The facility uses another bank account not registered in its name in its dealings related to its commercial activity.
Article 7: Every person who becomes aware of any person’s conduct of a hidden trade must inform the Ministry immediately.
Article 8: Evidence for the violations stipulated in this decision shall be by all methods of proof stipulated in the laws and royal decrees in force, including electronic evidence.
Article 9: The Ministry may assign some of its specialised employees to monitor the establishments, and to enter them at any time to ensure the implementation of the provisions of this decision, and to take the necessary measures regarding the violations committed.
Article 10: When violating the provisions of this decision, the Ministry may impose one of the following penalties:
1. Cancellation of the activity from the commercial register.
2. An administrative fine of OMR 5,000.
3. An administrative fine of OMR 10,000 in case the violation is committed for the second time, with suspension of activity for a period of three months.
4. An administrative fee of OMR 15,000 in case the violation is committed for the third time, with the activity being struck off from the commercial register. The activity may not be re-registered except after one year has passed from the date of the striking off.
Article 11: The legal person shall be jointly responsible for fulfilling the penalties imposed if the violation was committed by one of his employees in the name of the legal person or for his benefit.
Article 12. If the concealed person initiates the report, the Ministry may mitigate the penalties stipulated in this decision or exempt him from them.
