Two individuals face deportation after using forged documents to deceive firm.
A Dubai court has ordered two men to jointly repay Dh723,500 to a company and its manager after being found guilty of impersonating Federal Tax Authority employees and defrauding the victims using forged documents.
The court also imposed 5% annual legal interest from the date the judgment becomes final until full payment is made, in addition to court fees and Dh1,000 in legal costs. A separate claim seeking Dh12 million in compensation was dismissed due to insufficient evidence and lack of causation.
The ruling, issued by the Dubai Court of First Instance, follows a related criminal conviction involving fraud, forgery and the use of falsified documents.
According to case details, the defendants contacted the manager of a company owned by the first claimant while falsely posing as Federal Tax Authority officials.
They allegedly obtained confidential company information and presented forged documents claiming that tax reconsideration requests had been approved and that outstanding liabilities had been cleared. The defendants also purportedly asserted that they could help settle or reduce the company’s tax obligations through official procedures.
Relying on the defendants’ claims, the manager transferred Dh723,500 to them.
The court found that the accused used forged state seals, a falsified Federal Tax Authority stamp and a fabricated employee signature. They also gained access to the company’s tax system and submitted a false declaration reflecting a negative taxable amount equivalent to the outstanding liabilities, effectively attempting to reduce the company’s dues to zero.
The fraudulent filing triggered significant reassessments and penalties, with the company’s total tax exposure estimated at around Dh13 million, including Dh1.08 million in existing dues and Dh4.9 million in late-payment penalties. The company also suffered operational disruption, including the freezing of its trade licence, bank accounts, vehicles and other assets, bringing its business activities to a halt and affecting obligations to staff, clients and suppliers.
In the criminal proceedings, the defendants were sentenced to six months in jail, fined Dh723,500 jointly, ordered to surrender the forged documents, and deported. The ruling was upheld by the Court of Appeal and the Court of Cassation, making it final and enforceable.
In the civil case, the court held that the criminal judgment was binding regarding the existence of the offence and the defendants’ liability. It therefore ordered repayment of Dh723,500, along with interest and costs.
However, it rejected the Dh12 million compensation claim, citing a lack of proof of fault, damage and causation. The court noted that although a tax and accounting expert panel had been appointed, the claimants failed to pay the Dh60,000 expert fee despite being granted sufficient time, preventing the assessment from proceeding.
The court ruled that, in the absence of expert evidence or supporting documentation, the claimed losses remained unsubstantiated, effectively bringing the dispute to a close and limiting recovery to the amount obtained through fraud.
