April 22, 2022Dated: | Byadmin admin | Whistleblowers are invaluable in the fight for public accountability. Decision-makers, news organizations, and civil society organizations are progressively highlighting the value of whistleblowers and the need to protect them. Sadly, despite increased efforts in many counties, whistleblowers fear retribution and doubt that the authorities will resolve their fears. Who is a Whistleblower? Even though we frequently use the word “whistleblowing,” there is no publicly accepted definition. In general, a whistleblower works for an organization and discloses information that they believe shows evidence of wrongdoing, dishonesty, or potentially harmful behavior to others. Anyone who admits serious culpability or other public-interest details should be protected by “whistleblowing” laws, and their disclosure requires proper assessment and investigation. The Council of Europe defines whistleblowing as “one who reports a concern or discloses information on acts and omissions that represent a threat or harm to the public interest they have come across in their work.” What is Raqeeb? In an announcement on 14th April 2022, the Emirati Federal Tax Authorities spoke of establishing a whistleblower program, Raqeeb. The new Raqeeb program is a reporting mechanism for tax evasion and violations, and its goal is to improve tax compliance in the UAE. According to the official Emirates News Agency, the whistleblower program is now effective. How Does Raqeeb Work? Raqeeb requires those reporting alleged tax violations to submit a complaint and their name under a non-disclosure agreement. The Emirati Federal Tax Authorities will hold the complainant’s names in complete confidence; according to a federal tax authority document, those who report a tax violation will be eligible for a monetary reward. 4 Things You Need to Know About Raqeeb Following several incidents that reflected negatively on the United Arab Emirates, the UAE Emirati Federal Tax Authorities are working to change its reputation as a secure base for financial wrongdoing. In Paris, the Financial Action Task Force added the UAE, Syria, and Yemen to countries where tax evasion is a concern in March. The Emirati government has promised a vehement response to the listing.In March 2022, because of the Russian invasion of Ukraine and the subsequent sanction, some Russians reportedly bought land in the UAE with Cryptocurrency. They intended to evade the sanctions.The Pandora Papers, published in 2021, revealed extensive hidden money flows in the United Arab Emirates, including some used by criminals.Before all of this, the FinCEN Files leak in 2020 caused even more embarrassment for the Emirates Central Bank, with the accusation of their assisting Iran in evading US sanctions. In the UAE, the Federal Tax Authority is not the only entity to have recently instituted a whistleblowing program (14th April 2022). The authority serves as an independent regulator for Dubai’s International Finance Center, home to over 2,500 businesses. Conclusion Although the Federal Tax Authority’s whistleblowing program currently only applies to excise taxes and value-added taxes in the UAE, it will gain traction in 2023 when the country introduces a corporate tax for the first time. Flyingcolourtax consultants are well-versed in the UAE’s FATCA/CRS requirements and can assist financial institutions in remaining in full compliance with the rules. Book your free consultation with us to know more about the comprehensive services.