RIYADH, 6 May — French authorities have sued a Saudi businessman for allegedly dodging payments of millions of francs in tax. The tax department claimed that the businessman, Harb Al-Zuhair, owed the state 80 million francs in tax for the years 1996 to 1998.
Al-Zuhair, who is a permanent resident of France, has owned a house in the country since 1987 and has been running his business operations in Saudi Arabia from France, French officials said. They argued that the Saudi businessman had bank accounts in France, and under French law, he, as all permanent residents in the country, should pay tax.
Denying the charges, Al-Zuhair produced official documents to prove that he was a permanent resident of Saudi Arabia while his stay in France was for rest and convalescence rather than for business. His properties in France cannot be considered as business ventures, Al-Zuhair said. “Moreover, the authorities in my native country consider me a resident subject to Saudi law,” he added.
Al-Zuhair also showed the deed of his private house in Riyadh where he lived with his children and grandchildren, and a certificate issued by the Saudi Zakah and Income Department which proved that he was subject to the government’s zakah provisions which made him eligible for exemption from double taxation as stipulated by an agreement between Saudi Arabia and France. He also produced a memo from the head of the French economic office in the Kingdom to the French tax authorities stating that Al-Zuhair is a domicile of Saudi Arabia pursuing his business activities in the Kingdom.
The Saudi Foreign Ministry has intervened to stop action against Al-Zuhair saying the move would violate the bilateral agreement on double taxation. The ministry urged the French authorities to suspend any further action until the court gave its ruling on the issue. (Al-Eqtisadiah)
