The Ministry of Commerce Defames a Citizen and an Expat Convicted of the Crime of Commercial Concealment by engaging in the Trade of Fodder and Agricultural Crops

29 Oct 2020

​​The Ministry of Commerce has defamed a citizen and an expat of Syrian nationality after a court ruling was issued convicting them of violating the Anti-Commercial Concealment Law. The citizen has enabled the expat to engage in the trade activity of fodder, agricultural crops and the rental of equipment in Tabarjal Governorate, Al-Jawf Region.

The Ministry has published a summary of the judicial ruling issued by the Criminal Court in Sakaka, including a fine of 550 thousand riyals, closure of the facility, liquidation of the trade activity, cancellation of the license, writing off the commercial register, also preventing the citizen of practicing the same trade activity, payment of zakat, fees and taxes, besides deporting the expat from the Kingdom and not to be allowed to return for work, as well as defamation by publishing the ruling in a local newspaper at the expense of the violators.

In details, MC inspectors suspected a case of commercial concealment, and upon inspecting the site, it has been turned out that the citizen is enabling the expat to practice the trade of fodder, selling agricultural crops and renting agricultural equipment.

Also material evidences have been seized confirming the case of the cover-up, in agreement between the two parties, as well as there are financial transactions in large amounts between the resident and a number of individuals and commercial establishments. It has been proved that the expat is managing the Est. and running the business of agricultural activities with the help of two of his sons. He used to supervise the labors, as well as doing the activity of storing, selling and buying fodder and agricultural crops and collecting the revenues resulting from such activities. Accordingly, the case was referred to the concerned authorities for taking the legal measures and imposing the penalties against the violators in accordance with the Anti-Commercial Concealment Law.

It should be noted that the new law for combating the commercial concealment, which was recently approved by the Council of Ministers, relied on mechanisms that contribute to eliminating the sources of commercial concealment and putting an end to the shadow economy.

The law included heavy penalties of up five-year imprisonment, a fine of up to five million riyals, seizure and confiscation of the illegal funds of the violators, after final court rulings were issued against them, in addition to other penalties, including closing the facility, liquidating its trade activity, writing off the commercial registry and preventing the convicted person from practicing any economic activity for a period of five years, besides deporting the expat from the Kingdom and not to be allowed to return for work.

The Ministry of Commerce receives reports and complaints about the commercial concealment through MC Consumer Call Center (1900), or through the application of a Commercial Violation Report, or via the Ministry’s website. Notably, the Ministry grants a financial reward to the informer of up to 30% of the total fines after collection, which may reach to five million riyals against each violator.

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Last Modified 01 Nov 2020