Tag: Case and Fatwa Summary

The Ministry of Justice and Legal Affairs (MJLA) held that a contractor does not have the right to a variation order to obtain compensation from the Ministry of Transport, Communications, and Information Technology (MTCIT) for VAT paid in connection with a contract that was signed before the issue of the Value Added Tax Law.

In a contract that was signed before the entry into force of the Value Added Tax Law, the Ministry of Justice and Legal Affairs (MJLA) held that a contractor was required to pay VAT out of the contract value agreed with the Ministry of Health and that contractor had no basis for adding it as additional charge that the ministry owes to the contractor.

The Ministry of Justice and Legal Affairs (MJLA) held that individuals who have reached the lottery stage of the land allocation process are entitled to obtain a land even after the legislation that establishes the right for the entitlement to this land was repealed.

The Ministry of Justice and Legal Affairs (MJLA) held that the Oman Housing Bank, a government-owned enterprise under the Oman Investment Authority, is exempt from value added tax (VAT).

The Ministry of Justice and Legal Affairs (MJLA) confirmed the right of the employer under the Standard Contract for the Construction of Buildings and Civil Works to replace a contractor with another if the first contractor goes bankrupt in accordance with article 63-1 of the Standard Contract. The MJLA noted that the exercise of this right can be restricted by the provisions of article 59 of the Civil Transactions Law, but determined that none of the cases of article 59 applied in this case.

The Ministry of Justice and Legal Affairs (MJLA) deemed that the allocation of a government building to a government entity does not automatically make that government entity a party to a construction contract relating to that building when another government entity has been explicitly assigned the obligations relating to this contract by royal decree.

The Ministry of Justice and Legal Affairs (MJLA) adopted a literal interpretation of article 52-3 of the Standard Contract for the Construction of Buildings and Civil Works, Fourth Edition 1999 stipulating that the contractor is entitled to a revision of the contract value if the cumulative value of the variation orders exceeds 10% of the original contract value.

The Ministry of Justice and Legal Affairs (MJLA) deemed that the first sale of real estate by the developer in integrated tourism complexes is not exempt from value added tax (VAT).

The Ministry of Justice and Legal Affairs (MJLA) deemed the Corporate Governance Principles for Government-Owned Companies issued by the Capital Market Authority (CMA) to be invalid due to the failure of the CMA to publish such principles in the Official Gazette and the lack of competence of the Executive President of the CMA to issue them. The MJLA also held that companies subordinate to the Oman Investment Authority are not exempt from the scope of such principles.

The Ministry of Justice and Legal Affairs (MJLA) deemed that the State Audit Institute (SAI) has a duty to release the confidential emails of a third-party held in its possession to support the defence of the government against the claims made by that third-party in an arbitration case.