The Director General of Taxes (“DGT”) issued Circular Letter No. 1 of 2024 on 19 January 2024, outlining technical instructions for examining initial evidence of criminal acts in the tax sector. This new regulation includes several provisions regarding the initial evidence examination, such as the extension of the examination period, notification of the examination results, and follow-up notification.

The following are the main points of the new regulation:

1. Extension of the examination period
2. The initial evidence examination period can last up to 12 months and may be extended for another 12 months; and
3. The examination period starts when the notification letter for the open examination is delivered or when the examiner receives the initial evidence examination order for private examinations.
4. Notification of the examination results and follow-up
5. The follow-up to the initial evidence examination is detailed in the examination report, along with notification of the results to the individual or entity undergoing the open examination;
6. The follow-up notification is issued within one month of the initial evidence examination results and continues until the end of the examination period; and
7. Notification of the examination follow-up is delivered to the individual or entity undergoing the examination and the tax office where the taxpayer is registered one day before the end of the examination period.

This regulation came into effect on January 19, 2024.