• Part 20: Part 20: Enquiries

    Amended (as from 18th June 2014)

    • Article 120 - Policy Statement on Enquiries

      The Tax Department has broad powers, including information powers, to enquire into returns. An enquiry must normally be opened within 12 months of a return being filed or amended as the case may be. This limited enquiry window, together with a provision allowing the Tax Department to indicate it does not intend to enquire into a return, gives QFC Entities a degree of certainty regarding their tax liability. The enquiry time limits are extended where the Tax Department considers there has been fraud or neglect. A QFC Entity may ask, by way of appeal, for an enquiry to be closed if it considers the Tax Department is not justified in continuing the enquiry.

      Amended (as from 18th June 2014)

    • Article 121 - Notice of Enquiry and Notice of Intention not to Enquire

      (1) The Tax Department may enquire into a return filed under Article 109 if it gives notice of its intention to do so ("notice of enquiry") to the QFC Entity which filed the return, within the time allowed.
      (2) The time allowed is—
      (a) if the return was filed on or before the filing date, up to the end of the period of 12 months after the filing date;
      (b) if the return was filed after the filing date, up to the end of the period of 12 months after the return was filed; and
      (c) if the return is amended under Article 116, up to the end of the period of 12 months after the amendment was made.
      (3) A return which has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment (or another amendment) of the return by the QFC Entity.
      (4) The Tax Department may, with regard to any return or amended return, inform a QFC Entity by notice in writing that it does not intend to raise an enquiry under this Article in respect of that return or amended return.
      (5) Where a notice has been given to a QFC Entity under Article 121(4) the Tax Department may not commence an enquiry under this Article into the return or amended return specified in the notice unless they form the opinion that the return or amended return was filed fraudulently or negligently.
      Amended (as from 18th June 2014)

    • Article 122 - Scope of Enquiry

      (1) Subject to Article 122(2), an enquiry into a return filed under Article 109 may extend to anything contained in the return, or required to be contained in the return, including any claim.
      (2) If a notice of enquiry is given as a result of an amendment of a return under Article 116
      (a) at a time when it is no longer possible to give notice of enquiry under Article 121(2)(a) or (b); or
      (b) after an enquiry into the return has been completed,
      the enquiry is limited to matters to which the amendment relates or which are affected by the amendment.
      Amended (as from 18th June 2014)

    • Article 123 - Amendment of Self-Assessment During Enquiry to Prevent Loss of Tax or Overpayment of a Tax Credit

      (1) Where an enquiry into a return is in progress and the Tax Department forms the opinion—
      (a) that the amount stated in the self-assessment contained in the return as the amount of tax payable is insufficient or the amount of tax losses is inflated; and
      (b) that unless the self-assessment is immediately amended there is likely to be a loss of tax to the QFC or an overpayment of a tax credit in respect of a Reimbursable Tax Loss under Part 16,
      the Tax Department may by notice to the QFC Entity whose return is under enquiry, amend the self-assessment to make good the deficiency or inaccuracy.
      (2) In the case of an enquiry which under Article 122(2) is limited to matters arising from an amendment of a return, Article 123(1) applies only so far as the deficiency or inaccuracy is attributable to the amendment.
      (3) An appeal may be made against an amendment made under this Article by notice in writing to the Tax Department, given within 30 days after the amendment was notified to the QFC Entity.
      (4) An appeal under Article 123(3) shall not be heard or determined before the completion of the enquiry.
      Amended (as from 18th June 2014)

    • Article 124 - Completion of Enquiry

      (1) An enquiry into a return filed under Article 109 is completed when the Tax Department by notice (a "closure notice") informs the QFC Entity whose return it is that they have completed their enquiry and state their conclusions. The notice takes effect when it is issued.
      (2) A closure notice must either—
      (a) state that in the opinion of the Tax Department no amendment of the return is required; or
      (b) make the amendments to the return to give effect to the conclusions.
      (3) A QFC Entity whose return is subject to an enquiry may apply, by way of an appeal, for a direction requiring the Tax Department to issue a closure notice within a specific period.
      (4) Where an application under this Article is heard by The Regulatory Tribunal, that tribunal shall give the direction applied for under Article 124(3) unless they are satisfied the Tax Department has reasonable grounds for not giving a closure notice within a specified period.
      (5) An amendment of a return under Article 124(2)(b) shall displace any amendment of a self-assessment made during the course of the enquiry under Article 123.
      Amended (as from 18th June 2014)

    • Article 125 - Notice to Produce Documents and Information

      (1) Where the Tax Department has given a notice of enquiry to a QFC Entity under Article 121(1), they may by notice require the QFC Entity
      (a) to produce to them such documents as are in the QFC Entity's power or possession; and
      (b) to provide them with such information, in such form, as they may reasonably require for the purposes of the enquiry.
      (2) A notice under this Article must specify the time within which the QFC Entity is to comply with it.
      (3) The Tax Department may take copies of, or make extracts from, any documents produced to them under this Article.
      (4) An appeal may be made against a requirement imposed by a notice under this Article to produce information or provide documents.
      (5) Where an appeal under this Article is heard by The Regulatory Tribunal, that tribunal—
      (a) shall set aside the notice so far as it requires the production of documents, or the provision of information, which appears to them as not reasonably required for the purposes of the enquiry; and
      (b) shall confirm the notice so far as it requires the production of documents, or the provision of information, which appears to them as reasonably required for the purposes of the enquiry.
      (6) A notice confirmed by The Regulatory Tribunal (or in so far as it is confirmed) has effect as if the period specified in it for complying was 30 days from the determination of the appeal.
      (7) The decision of The Regulatory Tribunal on an appeal under this Article is final and binding.
      (8) A QFC Entity which fails to comply with a notice to produce documents or information under this Article is liable—
      (a) to a financial sanction of QR 1,000; and
      (b) if the failure continues after a financial sanction is imposed under Article 125(8)(a), to a further financial sanction or financial sanctions not exceeding QR 1,000 for each day on which the failure continues.
      (9) No financial sanction shall be imposed under Article 125(8) in respect of a failure at any time after the failure has been rectified.
      Amended (as from 18th June 2014)

    • Article 126 - Amendment of Return by QFC Entity During Enquiry

      (1) This Article applies if a return is amended under Article 116 at a time when an enquiry into that return is in progress. The amendment does not restrict the scope of the enquiry.
      (2) So far as the amendment affects the amount stated in the self-assessment included in the return as the amount of tax payable or the amount of a Reimbursable Tax Loss that entitles a QFC Entity to a payment of tax credit under Part 16, it does not take effect while the enquiry is in progress, and—
      (a) if the Tax Department take the amendment into account in formulating the amendments contained in a closure notice issued under Article 124, or conclude the amendment is incorrect, the amendment shall not take effect;
      (b) otherwise the amendment takes effect when a closure notice under Article 124 concluding the enquiry is issued.
      Amended (as from 18th June 2014)