Cabinet econ group greenlights fast-track VAT refunds

LEGISLATION WATCH- Cabinet econ group greenlights fast-track VAT refunds: Amendments to the executive regulations of the VAT Tax Act proposed by the Finance Ministry and approved in a cabinet economic group meeting yesterday would allow VAT taxpayers to provide authorities bank guarantees that would pay out refunds before an assessment on the tax return is made. The guarantees must cover the full amount of the proposed refund and be renewable. Taxpayers that have previously been convicted for tax evasion will not be eligible for a fast-track refund.

Why is this on the table? Investors and large taxpayers have been complaining that tax refunds take too much time. The reason for this is that claimants need to submit lengthy documentation that is in turn assessed by the Tax Authority to ensure their authenticity.