Govt initiates process to take action against revenue evaders

KATHMANDU, Jan 29:

The government has initiated the process to take action against firms and individuals failing to come into the tax system by mid-January.

The Inland Revenue Department (IRD) on Tuesday issued circular to all its subordinate offices, asking them to immediately initiate actions against those who ignored government call made through the Financial Ordinance or the budget speech.

The ordinance has offered different incentives, including exemption on penalties and concessions in accumulated tax liabilities, to firms and individuals if they register or renew business, submit financial statements and pay tax of last two fiscal years within mid-January.

“We have directed all our offices to initiate the process to punish those who cold-shouldered our offer,” Tanka Mani Sharma, director general of IRD, told Republica.
The government had also given various firms and individuals the oportunity to clear their dues found under mismatch of their transactions and invoices.

Sharma said IRD will initiate action following the legal process in which revenue officials will take data of those unscrupulous firms and individuals before summoning them at IRD offices to put further pressure on them to clear the dues. “We will go to the extent of freezing their assets,” said Sharma.

Around 4,200 firms and individuals with mismatch in transactions and invoices cleared their dues within the stipulated timeframe. Around 4,400 firms and individuals were eligible for the facility.

Similarly, around 30,000 other firms and individuals, including 18,000 non-filers (who failed to submit the financial statements to IRD), and 1,500 VAT defaulters and new registrations, were also eligible for the incentives.

“Though significant number of firms and individuals that were not under tax net responded to our offer, large number of professionals are still showing reluctance to come into the tax system,” he added.

In yet another move to intensify action against revenue leakage, IRD has issued letters to all regulatory bodies, requesting them to take action against those who have not registered with them or failed to make timely renewal of their businesses.

Depending on the nature of business, individuals and firms have to register with various regulatory bodies such as Company Registrar Office, Nepal Rastra Bank, Securities Board of Nepal, municipal offices, Insurance Board and District Development Offices, among others.

“We have requested all the regulatory agencies to go to the extent of closing business and canceling registrations of firms and individuals ignoring our calls,” added Sharma.

Source: Republica