Two Indian men, who allegedly illegally claimed value added tax (VAT) refunds worth more than BD300,000 on luxury watches, may soon be serving time behind bars.
The duo, aged 35 and 40, applied for the refunds at Bahrain International Airport and were caught after failing to declare the items to customs officers.
They are standing trial at the High Criminal Court, where they are facing charges relating to tax fraud and failure to declare luxury Rolex watches.
According to court documents, they were caught by a customs officer at the airport, where they claimed that they bought the watches in Bahrain ‘for personal use’.
Both were allegedly in the country on tourist visas, where they took advantage of the kingdom’s VAT return policy, with the 35-year-old illegally claiming BD102,711.822 in 57 different transactions.
Meanwhile, the 40-year-old claimed BD207,044.066 in 125 transactions since 2021.
In total, the duo claimed BD309,755.888 over four years.
On August 31, at around 12.30am, a customs officer noticed the two defendants in, what he considered to be, ‘a nervous state’ in the departures hall of the airport.
The officer followed the 35-year-old defendant as he, and his co-accused, went through security checkpoints and past the declaration counter.
According to Customs Affairs, passengers are supposed to declare cash or financial instruments such as gold and luxury items exceeding BD10,000 when entering or leaving the kingdom.
The Indian defendants allegedly deliberately failed to do so, and wanted to go to their gate to catch their flight, when the officer stopped them for an inspection.
He asked the defendants if they had anything to declare, and they both said ‘no’. He referred them to the red line where they were searched for hidden goods.
The officers found four luxury Rolex watches, one worn by the 35-year-old, one hidden under his black jacket, another one in hand luggage and a fourth in an envelope inside his trouser pocket.
When confronted, the man reportedly claimed that they belonged to him but later stated that they were meant for ‘somebody else’ in Abu Dhabi.
The defendants claimed that they were given money to buy the watches in Bahrain and then they would give them to their contact in the UAE.
The court was told the much-in-demand watches would be later sold on at a profit. Both defendants were arrested on the spot for failure to declare the watches.
An investigation was launched, which led to the revelation that the duo had entered the kingdom on tourist visas multiple times from 2021 to 2025, where they would buy luxury watches and then illegally declare VAT refunds on them.
Tourists can apply for refunds for products purchased in the kingdom, but that does not apply to goods meant for sale overseas.
The two men were referred for trial at the High Criminal Court and yesterday they appeared before judges and denied all the charges when questioned.
They both claimed that they did not know they had to declare the watches.
The trail continues and the case has been adjourned until November 2.
nader@gdnmedia.bh
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