IRD to take action against tax evaders from 1 January 2023

Those who evade, avoid and shelter tax liability will face legal actions under the existing tax laws and anti-money laundering law from 1 January 2023.
The Internal Revenue Department released a statement on 16 November regarding tax evasion and tax avoidance. A further notification was issued on 21 November as well.
As per the statement, non-declaration or false declaration of assets and services, cross-border tax avoidance and under-reporting of income or minimizing tax liability or misrepresenting income between taxpayers and their partners, modifying the corporate structure to optimize tax benefits, tax evasion and tax fraud in contracts are subject to criminal charges and penalties.
Those unscrupulous persons who fail to declare for the long term, reduce the taxable income and liability by subterfuge, make inaccurate information to obtain tax-exempt status and tax returns, deliver false information and documents, lower tax bills and fail to affix tax stamps are committing crimes.
Additionally, illegitimate export/import to avoid tax, distribution of asset holdings and capital gains to evade or defeat tax, hiding assets with other separate bank accounts and having many financial statements to cut tax bills are tax fraud.
Those who intentionally evade tax will face legal actions, penalties and fines under Section 77 of Tax Administration Law. Moreover, further actions will be taken against them under the anti-money laundering law, the Internal Revenue Department notified.
This notification was released on 16 November 2022 and it will come into effect on 1 January 2023. — TWA/EMM