DRI uncovers new nexus of frauds

KATHMANDU, NOV 15: 

In yet another revelation of tax fraud, Department of Revenue Investigation (DRI) found nexus between Value Added Tax (VAT)-registered importers and Permanent Account Number (PAN)-registered wholesalers, firms and outlets.

“The department has found massive fraud from importers, who sell goods to concerned parties that is the wholesellers,” a department source said, adding that the investigation revealed that the importers import goods, who do not have any trading to escape from tax.

The department identified the trend of VAT evading through nexus among importers, wholesalers and retailers, the official told The Himalayan Times.

“There are so many business firms and outlets in the valley that import goods in contract to evade VAT and other taxes.”

The nexus among VAT-registered importers and PAN-registered firms to evade tax came in the light after DRI raided the fake bill producing centre at Mahabauddha in Kathmandu on November 9.

“Currently, at least 28 firms and big outlets are under the DRI radar,” the department source said, adding that the number of firms that have been cheating revenue through nexus with importers might be hundreds.

Cartel between importers and wholesalers, outlets and firms has been new trend, he claimed. “The department has suspected millions leakages through such nexus.”

“The chances of collecting VAT from revenue authority ends when importers sell goods to the concerned wholesalers, outlets and traders who do not have VAT registration,” he added.

On November 9, the department has taken the several bundles of bills, purchase ledger and selling ledger under control from Mahabaudha based house. It is found that the bill producer used to tally bill of goods imported with the nexus among importers and outlets and wholesalers.

Fake PAN in IC misuse too !

Firms involved in Indian Currency (IC) misappropriation not only used fake customs declaration forms but also fake Permanent Account Number (PAN) to hit government coffer, according to the Department of Revenue Investigation that has identified Shayam Galla Bhandar and Jay Mata Di Traders have used fake PAN number,” deputy director general of the department Shisir Kumar Dhungana said, adding that the investigation of rest of the firms is going on. Meanwhile, the department has finalised the actual amount misappropriated by Rehanta Traders and Jay Mata Di Traders. Shyam Galla has misused INR 7,170,000 and Rehanta Trad-ers has misused INR 228.8 million, he informed.

Source: THT