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Ahmed Al Kuwari: Fight this phenomenon before it gets out of control
Adnan Al-Khaili: Close the door to intruders in the business sector
Ahmed Al Nuaimi: Using so-called “limited liability companies” has cost us a lot of money
Lawyers and businessmen confirmed to Al Arabiya that the entry into force of the Commercial Concealment Law and the announcement the day before yesterday that five commercial concealment cases would be referred to the prosecutor’s office reflect the determination of the relevant authorities to combat these practices. On the one hand, it also reflects the increasing phenomenon of commercial concealment in the local market and points out the need to limit the negative consequences of these illegal business practices.
The Ministry of Commerce and Economy said that based on the report of the Anti-Trade Concealment Committee and the analysis of a large number of business records in the past few months, five cases of trade concealment were referred to the prosecution.
Commercial concealment is the act of allowing a non-Qatari to engage in commercial activities prohibited by law, such as using their licenses, commercial registers or other methods that lead to concealment.
Raise awareness
Legal adviser and expert Ahmed Mohammed Ghaith Al-Kuwari stressed the importance of combating commercial hidden crimes within Qatari society and keeping them out of control, noting their links to monopolies and money laundering.
Kuwari added that the entry into force of this law contributes to the elimination of this serious crime, which aims to reduce and gradually eliminate it, given the increasing risks posed by this serious crime, which has prompted the relevant authorities to enact the necessary laws with the aim of combating all those who dare to commit this crime. It has an impact on the economy in terms of the transfer of funds abroad, but also has a direct impact on the rise of competitors to free trade and manipulators of trade laws and fair competition rules.
He pointed out the need to spread awareness and legal culture about the crime of commercial concealment and demand that concealers be held accountable by law, stressing that the economic and negative consequences of commercial concealment are reflected in the transfer abroad of profits generated by these crimes, which has a negative impact on the national economy, in addition to the increase in commercial fraud cases due to the entry of low-quality products and services.
Deter violators
Lawyer Adnan Khalili, for his part, believes that the entry into force of the law to combat commercial concealment of the commercial, economic and professional activities of non-Qataris is a solid bulwark to protect the Qatari economy from the illegal actions taken by certain foreigners who engage in commercial and professional activities prohibited by law, in collusion with natural or legal persons who are legally authorized to engage in these activities.
Khalili stressed that commercial concealment is a scourge that threatens the development of the national economy and allows outsiders to tamper with professional and commercial fields without a sense of responsibility, which has a negative impact on the public interest, which requires transparency and the fulfillment of specific standards for those who engage in these activities.
He pointed out that the controls and requirements established by the law will achieve two fundamental objectives in the fight against commercial concealment, the first of which is to prevent anyone from engaging in unauthorized commercial or professional activities, as well as anyone who helps him do so, whether by providing a name, entity or something else that authorizes him to engage in commercial activities that are ostensibly legal, but which, from the inside, involve circumvention of applicable laws and regulations, pointed out. The second objective is to protect some citizens or formal companies that, without knowing the legal requirements, may allow the creation of fictitious companies through which some foreigners make huge economic profits at the expense of their own interests.
He continued: We find that the implementation of the above laws represents a series of legislative developments that are in line with Qatar Vision 2030 and will increase the transparency and standardization of relevant legal texts in the country’s economic and investment sectors.
Financial Need
Ahmed bin Hamad Al Nuaimi, an economics and finance expert, said the anti-cover-up law may be a long overdue move but it has become an economic necessity, noting that the cost of newspapers is huge and the impact is far-reaching.
Naimi stressed that the phenomenon of commercial concealment has several aspects, is widespread in the practice of uncontrolled commercial, service and construction businesses, and is responsible for the confusion, manipulation, exploitation, deception and fraud that occurs. Commercial concealment and the use of the legal status of the so-called “limited liability company” have caused huge losses to the national economy, which exceed the capital several times, and the court’s verdict has caused pain to society, indicating that the court’s approach is wrong. Such cases abound due to the fact that foreign partners have fled at the forefront of the scene in the absence of their partners or their citizen guarantors, whose presence is only symbolic in exchange for an agreed symbolic amount, indicating that these arrangements are the basis for knowing that foreign partners control everything related to the company’s business.
Expert advice
Nuaimi explained that the cover-up was carried out through an open agreement and official documents, knowing that the parties knew in advance the nature of the illegal actions, which were protected by the law and benefited from loopholes in the law.
Nuaimi said: “In reality, expatriates are engaged in various types of activities, economic, investment and services under the patronage of Qatari citizens, and foreigners often look for influential citizens to get better facilities, calling for caution and not circumventing the law,” Economic development in principle must focus on creating an atmosphere for establishing national companies, and pointed out that there are many business and investment opportunities for Qatari youth to create small and medium-sized contracting companies that have the ability to grow, but he added that he does not intend to generalize, some people have a certain level of professionalism and ability and have played a role in the implementation of many projects, but there are also some people. Many cases have suffered the results of practices based on fraud, fraud and deception, which the court proved, indicating that the first reason is concealment, as well as the lack of help from consulting experts before making a decision, and unfortunately, some citizens also played a role in this.
Legal settlement
Article 12 provides that if a person takes the initiative to report the crime or criminals to the competent authorities, he shall be exempted from punishment.
Subsection (16) also provides that the Minister or his authorised representative may, during the consideration period and before a final decision is made, enter into a settlement for a prescribed offence in exchange for payment of half the maximum fine, provided that the settlement results in no criminal prosecution being brought.
Under subsection (17), the Minister or his authorised representative may also agree to adjust the conditions of the covered item at the expense of the offender.
by law
The law prohibits any non-Qatari, whether natural or legal, from engaging in or investing in a commercial, economic or professional activity for which he or she is not permitted to engage in or invest under the laws in force in the country.
It is also prohibited to take a percentage of profits that exceeds the percentage specified in the company’s founding documents or articles of association.
Article (2) of the Act prohibits any non-Qatari, whether natural or legal, from:
1- Carrying out or investing in a commercial, economic or professional activity not permitted by the laws in force in that country.
2- The percentage of profits obtained exceeds the percentage stipulated in the company’s founding documents or articles of association.
Article (3) of the law also provides that any natural or legal person is prohibited from concealing the commercial, economic or professional activities or investments of non-Qatari persons in violation of the applicable provisions, allowing him to use the name, commercial or professional records of the concealed person, or in any other way evade the obligations imposed by the laws in force in the country, whether this is for the benefit of the person concealed, or for the benefit of the concealed person or a third party.
Article (7) provides that any person who, by reason of his or her position or employment, knows that a punishable offence has been committed must report such offence and provide any information he or she has concerning such offence.
Penalties
Article (8) provides that, without prejudice to any more severe penalty provided for by other law, any person who violates the provisions of Articles (2) and (3) of this Law shall be punished with imprisonment for a term not exceeding two years and a fine not exceeding 500,000 riyals, or with either penalty.
Article 9 also provides that the courts may take the following actions:
1- Confiscation of property involved in the crime, taking into account the rights of third parties in good faith
2- Deportation of the non-Qatari after the execution of the sentence against him.
3- The offender shall be prohibited from carrying out activities for a period not exceeding 3 years from the end or expiration of the sentence.
Section (10) also provides that any person who:
1- He maliciously reported an incorrect incident
2- He violated Article (7) of this Law
3- Preventing judicial officers from performing their duties in any way
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