Tax evasion is defined as the unlawful act of deliberately misrepresenting, concealing or falsifying information to reduce or eliminate tax liability.
This unethical practice which undermines the tax system is considered as a criminal activity
Following amendments made to section 50 of the Revenue Administration Act (RAA), effective 1 January 2025, any person who willfully evades tax or assisting a person in evading the assessment or payment of any tax liabilities, is liable on conviction to pay the amount of tax which has been undercharged in consequence of the offence, or which would have been undercharged if the offence had not been detected.
The person shall also be liable to imprisonment for a term of not less than 1 year or to a fine of level 6 on the standard scale or to both such fine and imprisonment.
The offences committed as part of tax evasion includes the intentional omission of declaration of income made from a return, lodgment of any false or incorrect statements, knowingly signing incorrect documents or return lodged or part thereof, providing false answers verbally or in writing when questioned or requested to provide further information by the Seychelles Revenue Commission (SRC) as well as preparing, maintaining or authorizing false books of accounts.
The unlawful act also comprised of usage of software or any other digital means to suppress sales, usage of another person’s credentials to conduct tax related fraudulent activities, and claiming of refunds, deductions or exemptions without entitlement.
Committing, utilizing or authorizing the use of any form of fraud, keeping money in foreign bank accounts with the intent to evade tax obligations, usage of shell companies, associates or other structures with the intention of concealing assets or causing any other circumstance to exist which will have the effect of enabling such person to evade any tax, penalty or interest chargeable or imposable under the RAA are all offences deemed as tax evasion.
Strengthening its compliance focus, the SRC is advising all taxpayers to file their returns and pay their taxes correctly, to refrain from engaging in suspicious activities without proper documents and not to engage with a person suspected of evading taxes.
Businesses are also encouraged to have the right governance structure when conducting their operations.