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  • Part 19: Part 19: Records and Returns

    Amended (as from 18th June 2014)

    • Article 107 - Policy Statement on Records and Returns

      All QFC Entities within the charge to tax must file a return for each Accounting Period. Appropriate records are to be maintained and preserved and accounts, computations, and other documents, as specified by the Tax Department, are to be submitted with the return. Each return is to contain a self-assessment of tax payable. Returns may be amended within 12 months of the filing date. Financial sanctions may be imposed in respect of late or incorrect returns. Returns may be filed electronically.

      Amended (as from 18th June 2014)

    • Article 108 - Records

      (1) The Tax Rules may specify the books of account and other records to be maintained and preserved by QFC Entities (TAX 6).
      (2) A QFC Entity which fails to maintain and preserve books of account and other records as specified in the Tax Rules is liable to a financial sanction not exceeding QR 20,000.
      Amended (as from 18th June 2014)

    • Article 109 - Obligation to File a Return

      (1) Every QFC Entity shall for each Accounting Period file a return with the Tax Department, on or before the filing date as defined by Article 111.
      (2) Every return shall be signed by the Representative of the QFC Entity filing the return and include a declaration to the effect that the return is to the best of his knowledge correct and complete.
      (3) Where no return for an Accounting Period is filed by a QFC Entity on or before the filing date the Tax Department may determine, to the best of their information and belief, the amount of tax payable by that QFC Entity for the Accounting Period in question.
      (4) A determination under Article 109(3) may not be made more than five years after the filing date for the Accounting Period in question.
      (5) If, after a determination of tax payable has been made under Article 109(3), the QFC Entity files a return for an Accounting Period ending in or at the end of the Accounting Period specified in the notice of determination, the self-assessment in that return supersedes the determination.
      (6) Article 109(5) does not apply to a return filed—
      (a) more than 5 years after the day on which the power to make a determination became exercisable; or
      (b) more than 12 months after the date of the determination, whichever is the later.
      (7) The Tax Rules may make procedural and administrative provisions regarding the making of a determination under this Article (TAX 8).
      Amended (as from 18th June 2014)

    • Article 110 - Partnership Return

      (1) The obligation to file a return under Article 109 shall apply, in the case of a QFC Entity that is a Partnership (other than an LLP), to the Partnership rather than to the Partners.
      (2) A Partnership return shall contain a statement of the allocation of Taxable Profits (the profit share) between the Partners which shall be binding on them with regard to attributing tax liability to them under Article 62 for the Accounting Period in respect of which the return is filed.
      (3) A return of a QFC Entity which carries on a business in Partnership (other than by way of an LLP), must include a statement of its share of any profit or loss.
      (4) Where the return of a QFC Entity (the "QFC member") includes, under Article 110(3), a share of a profit or loss in a Partnership, and that Partnership is itself a QFC Entity (the "QFC Entity Partnership"), the share shall not be taxed or relieved, as the case may be, on the member to the extent it is taxed or relieved, as the case may be, on the QFC Entity Partnership.
      Amended (as from 18th June 2014)

    • Article 111 - Filing Date

      (1) The filing date for a return under Article 109 is 6 months from the end of the Accounting Period to which the return relates.
      (2) The Tax Rules may provide for an extension to the filing date (TAX 8).
      Amended (as from 18th June 2014)

    • Article 112 - Self-Assessment

      Every return filed under Article 109 must include an assessment (a "self-assessment") of the amount of corporation tax payable by the QFC Entity for the Accounting Period for which the return is filed.

      Amended (as from 18th June 2014)

    • Article 113 - Calculation of Tax Payable

      (1) The amount of corporation tax payable for an Accounting Period is calculated by applying the appropriate rate of tax to the QFC Entity's Taxable Profits for the Accounting Period.
      (2) Except where otherwise provided, references in these Regulations and the Tax Rules to the amount of tax payable by a QFC Entity for an Accounting Period are to the amount shown in the QFC Entity's self-assessment as the amount payable.
      Amended (as from 18th June 2014)

    • Article 114 - Claims

      The Tax Rules may contain administrative provisions regarding the procedure for making claims (TAX 13).

      Amended (as from 18th June 2014)

    • Article 115 - Prescribed Form and Information to Accompany Return

      (1) A return filed under Article 109 shall—
      (a) be in the manner and form prescribed by the Tax Department; and
      (b) include such information, accounts, statements and reports as may reasonably be required by the Tax Department for the purpose of ascertaining the Taxable Profits or tax losses, if any, and the tax liability of the QFC Entity filing the return.
      (2) The Tax Rules may contain administrative provisions relating to the electronic filing of returns (TAX 12).
      Amended (as from 18th June 2014)

    • Article 116 - Amended Returns

      (1) A QFC Entity may amend a return filed under Article 109 by notice to the Tax Department.
      (2) In the case of a Partnership a return may be amended by the Partnership's Representative.
      (3) A notice under this Article shall be in such form, contain such information and be accompanied by such statements as the Tax Department may require.
      (4) A QFC Entity may not amend a return under this Article more than 12 months after the filing date.
      Amended (as from 18th June 2014)

    • Article 117 - Acknowledgement of Returns

      The Tax Department shall, within 30 days of receiving a return filed under Article 109 or an amended return under Article 116, give notice in writing to the QFC Entity having filed the return to the effect that the return, or amendment, has been received.

      Amended (as from 18th June 2014)

    • Article 118 - Obvious Errors

      (1) The Tax Department may amend a return, by notice to the QFC Entity that filed the return, to correct obvious errors or omissions in the return whether errors of principle, arithmetical mistakes, or otherwise.
      (2) No correction under this Article may be made by the Tax Department more than 4 months after—
      (a) the day on which the return was filed; or
      (b) if the correction is required in consequence of an amendment by the QFC Entity under Article 116, the day on which that amendment was made.
      Amended (as from 18th June 2014)

    • Article 119 - Financial Sanctions Relating to Returns

      (1) A QFC Entity which fails to file a return for an Accounting Period under Article 109 by the filing date as defined by Article 111, or the filing date as extended under the Tax Rules (TAX 8), is liable to a flat-rate financial sanction under this Article. It may also be liable to a tax-related financial sanction under Article 119(4).
      (2) The flat-rate financial sanction is—
      (a) QR 3,000, if the return is delivered within 60 days from the filing date as defined by Article 111; and
      (b) QR 6,000, in any other case.
      (3) The flat-rate financial sanctions under Article 119(2) are increased to QR 5,000 and QR 10,000 respectively where—
      (a) the QFC Entity is within the charge to tax under these Regulations for three consecutive Accounting Periods;
      (b) the QFC Entity is obliged to file a return for each of those Accounting Periods under Article 109;
      (c) the QFC Entity was liable to a penalty under Article 119(1) in respect of the first two of those Accounting Periods; and
      (d) the QFC Entity is liable to a penalty under Article 119(1) in respect of the third Accounting Period.
      (4) A QFC Entity which fails to file a return for an Accounting Period under Article 109 within 12 months after the filing date as defined by Article 111, or the filing date as extended under the Tax Rules (TAX 8), is liable to a tax-related financial sanction, in addition to any flat-rate financial sanction under Article 119(1).
      (5) The tax related financial sanction is—
      (a) the higher of QR 10,000 or 10% of any unpaid tax, if the return is delivered within 18 months after the filing date; and
      (b) the higher of QR 20,000 or 20% of any unpaid tax, in any other case.
      (6) The “unpaid tax” means the amount of tax payable by the QFC Entity for the Accounting Period which the return was required remaining unpaid on the date the liability to the financial sanction under this Article arises.
      (7) Where corporation tax is charged by an assessment issued under Article 128 or by a determination made under rule 8.2 of the Tax Rules, “tax payable by the QFC Entity for the Accounting Period which the return was required” in Article 119(6) shall mean the amount of tax assessed or determined to be payable by the Tax Department under Article 128 or rule 8.2 of the Tax Rules, respectively.
      (8) A financial sanction under Article 119(1) or the tax related financial sanction under Article 119(4) may be set aside if it appears to the Tax Department, on application in writing by the QFC Entity for that purpose, that throughout the period of default the QFC Entity had a reasonable excuse for not filing the return. An application under this Article may not be made until the return in question has been filed and must be made within 30 days of that date.
      (9) A QFC Entity which—
      (a) fraudulently or negligently files a return which is incorrect; or
      (b) discovers that a return filed by it, neither fraudulently or negligently, is incorrect and does not remedy the error without unreasonable delay,
      is liable to a tax-related financial sanction of an amount not exceeding the tax understated.
      (10) The tax understated in Article 119(9) is the difference between the amount of tax payable by the QFC Entity for the Accounting Period for which the return is filed and the amount of tax which would have been so payable on the basis of the return filed.
      Amended (as from 18th June 2014)