The Ministry of Commerce publicly shamed two residents, one of French nationality and the other of Lebanese nationality, against whom a court ruling was issued convicting them of violating the anti-concealment system, after it was proven that the first enabled the second to work for his own account in contracting activities in the city of Riyadh.
Case details
The details of the case go back to the suspicion of a violation by the establishment licensed under a foreign investment license, as it was proven that the owner of the establishment enabled the person being concealed to practice a commercial activity that he was not licensed to practice, and the concealer abandoned the responsibility of managing and running the business of his establishment, which is considered a violation of the anti-concealment system.
It was also revealed that the financial transactions of the person being concealed were large and inconsistent with his profession (architect), and that he collected revenues resulting from commercial activity and transferred funds outside the Kingdom.
The court ruling
The ministry published the judicial ruling issued by the Criminal Court in Riyadh, which included a financial penalty, closure of the establishment, liquidation of the business, cancellation of the license, cancellation of the commercial registration, prohibition from practicing the business, collection of zakat, fees and taxes, in addition to deporting the person who concealed and the person being concealed from the Kingdom and not allowing them to return to it for work, and publicizing the ruling by publishing it in a newspaper at the expense of the violators.
The Ministry of Commerce warns all foreign investors in the Kingdom who have obtained a license authorizing them to practice any commercial activity against violating the Anti-Concealment Law and enabling non-Saudis to work for their own account. It emphasizes the need to apprehend violators and refer them to the judicial authorities to apply the legal penalties against them, in implementation of the provisions of the Anti-Concealment Law.
Taking advantage of the benefits of the corrective period regulations
The Ministry urges violators of the Anti-Concealment System (Saudi or non-Saudi) to take advantage of the benefits of the Corrective Period Regulations for Violators of the Anti-Concealment System, and to submit applications to correct their status through the Ministry’s website mc.gov.sa before the deadline of August 23, 2021, in order to avoid the penalties stipulated in the system, and the consequences thereof, and to avoid paying income tax retroactively.
The correction process is carried out easily and conveniently through multiple options, including: bringing in a new legal partner (Saudi or non-Saudi) and continuing to work in the establishment, or the Saudi disposing of the establishment by selling it, assigning it, or dissolving it, or registering the ownership of the establishment in the name of the non-Saudi, by agreement between the Saudi and the non-Saudi to transfer ownership of the establishment to the non-Saudi, after the latter obtains an investment license. The non-Saudi can also apply for a premium residence permit, or an investment license to continue working in the establishment, or apply for final exit.
