Sunday, September 18, 2011

Inland Revenue Department (IRD) seeks Rs 2.96b from VAT defaulters

Inland Revenue Department (IRD) has slapped taxes plus fine worth Rs 2.96 billion on 254 firms which were found to be involved in VAT evasion racket by producing fake receipts. Responding to IRD decision, 36 firms approached the IRD for review of taxes and fine slapped on them.

Out of the total 254 cases in which IRD investigation has been completed and tax liabilities fixed, 36 firms has approached IRD seeking review of the tax slapped on them. So, IRD is also simultaneously reviewing the cases as requested by those firms and investigating into more new cases.

Of the total 518 cases under investigation, IRD investigation in 254 cases from its 19 offices across the country has confirmed that total Rs 2.96 billion worth of tax has been evaded in last three years. "Over the two weeks, we have settled 12 tax payers� cases and confirmed the evasion of over Rs 64.3 million," said Rajan Khanal, director general of the IRD.

Administrative review committee of IRD has upheld most of the tax amount fixed by its investigation officials and some cases are under review. As per the existing law, those firms can approach Revenue Tribunal within sixty days if they are not convinced with the IRD decision.

Till the end of August, 24 IRD offices across the country have been investigating into the fake VAT bill racketeering that have inflicted a revenue loss of more than Rs 10 billion on the government.

IRD has been conducting probe into the use of fake VAT bills from its head office and three area offices in Kathmandu as well as offices in Bhadrapur, Biratnagar, Dharan, Birgunj, Hetauda, Bharatpur, Bhairawa, Lalitpur, Nepalgunj, Bhaktapur, Krishnanagar, Butwal, Pokhara, Simra, Janakpur, Lahan, Dhangadhi, Mahendra Nagar and Dang.

According to IRD, Large Taxpayers Office (LTO)-Lalitpur is handling the maximum 152 cases, followed by IRD area office no.1 that is investigating 59 cases. LTO has settled the highest amount Rs 1.06 billion in tax followed by IRD head offices that fixed tax worth Rs 999.1 million so far.

However, IRD office of Janakpur, Lahan, Dhangadhi, Mahendra Nagar and Dang has not initiated any investigation into the cases. IRD�s that started functioning in November 2010 had found widespread use of fake VAT receipts, specially by big business houses posing a serious challenge to the existing tax administration in the country.

Source: Republica

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