Three executives and a drilling company are on trial for allegedly evading BD52,000 in value-added tax (VAT), and the Public Prosecution asked judges to hand them the maximum penalty.
They are standing trial at the High Criminal Court – the two British expats in absentia and a Jordanian general manager in person – alongside the company itself, which was charged as an ‘artificial person’.
The four were accused of not paying BD52,507 to the National Bureau for Revenue (NBR), within the legally-mandated period, for VAT owed between 2022 and 2025, even though tax reports had been filed.
The 68-year-old Brit was designated as responsible for BD3,536 of the amount, while the 24-year-old Brit and 35-year-old Jordanian were accused of being responsible for the remaining BD48,971.
As the only defendant who appeared at court, the Jordanian claimed that a settlement had already been reached with the NBR, but that the case was taken to criminal court anyway.
Now, since the company’s commercial registration (CR) – a local branch of a British drilling firm – has been suspended by the NBR, he stated that they cannot pay the agreed-upon instalments.
The Jordanian’s defence have told judges that he cannot be tried in this case, claiming that he is not authorised to access the company’s bank accounts or pay taxes as general manager.
“The defendant can sign, extend and renew rental contracts, receive rents, buy and sell cars owned by the company, acquire work permits from the Labour Ministry and visas from the Nationality, Passports and Residence Affairs, pay salaries, and hire and fire people,” the defence memo stated.
“He is also authorised to delegate any of these tasks to others.
“The Public Prosecution failed to notice that the list does not include dispensing funds, using money in the company’s bank accounts or paying taxes.
“His authority is only administrative, not financial. The authorised person cannot exceed the powers granted to him.”
The GDN previously reported the Arab man’s testimony that the 68-year-old British businessowner, who founded the company, was convicted of embezzlement and fraud three years ago and was sentenced to five years in prison.
A new administration was put in place by the parent company to settle all the firm’s dues to banks, the government and other companies, he said, and a total of BD50,000 was so far paid to creditors.
On CR portal Sijilat, the firm was described as a branch of a foreign company, with the younger defendants appointed as the authorised signatories after the founder was ousted.
In his testimony, he claimed that he has no financial powers besides being a signatory.
“The first defendant (68) was in control of all the company’s operations, financially and administration-wise,” the Jordanian executive stated. “I was hired as a project manager, and have no say in the fiscal side of things.
“In 2023, a verdict was issued against him in criminal court, he was jailed then left the country.
“He stepped down from running the company, and the third defendant (24) was sent by the mother company in his place. He follows up on debts and communicates with partners.”
The Jordanian added that the 24-year-old Brit had not been in Bahrain since 2023, but was nevertheless responsible for the firm’s monetary affairs.
He asked the court to pause the suspension of the CR, which led to a halting of all activities and a freeze on its bank accounts.
“We are also entitled to large sums of money from lawsuits we’ve won, but we cannot receive it since our accounts are frozen. We ask for a chance to pay out debts; we have enough to pay them off,” he stated.
Judges set September 29 as the date a verdict will be issued in the case.
zainab@gdnmedia.bh
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