IRD completes investigation against 468 firms in VAT fraud

KATHMANDU,JAN 17: 

Inland Revenue Department completed investigation against 468 firms — out of a total of 518 cases — of Value Added Tax (VAT) fraud scam. “The department slapped Rs 4.55 billion tax and fine to the 468 firms that were involved in evading VAT compliance by producing fake invoices, joint secretary at Finance Ministry Shanta Raj Subedi said. 

The tax administration slapped the fine adding cheated Value Added Tax, Income Tax and fine, according to the law, he said, adding that the Large Taxpayers’ Office is handling most of the remaining 50 firms. “Revenue worth Rs 794 million has been collected so far out of Rs 4.55 billion.”

A total of 112 firms have, however, approached the Administrative Review Committee led by director general of Inland Revenue Department. Out of 112, the committee has already finalised 71 cases, according to the ministry. The taxpayers can file review against the decision at the Administrative Review Committee under the department, if they could not be satisfied with the decision.

The Inland Revenue Department has vowed to complete investigation by mid-February, according to the Finance Ministry that seems to achieve its tax mobilisation target for the current fiscal year, in spite of rising various tax fraud cases that are in billions.

“The final figures are yet to be compiled,” joint secretary Subedi said, “But only Rs 2.93 billion seems to fall short for the first six months of current fiscal year.”

The overall revenue target for the first half of the current fiscal year was Rs 112.93 billion and the revenue mobilisation stands at Rs 110.10 billion by mid-January, Subedi informed.

Dept to challenge Tribunal

Inland Revenue Department is appealing against the decision of Revenue Tribunal Kathmandu in the case of Saleways Department Store. The department had slapped Rs 114.2 million fine in 2009 after assessment of tax evasion by the department store. But the Revenue Tribunal Kathmandu had given it a clean cheat last week. “The final verdict of the tribunal is quite unacceptable since the department had collected all evidences of tax evasion,” the finance ministry source said, adding that the department will loose all the cases of VAT frauds, if the tribunal continues to such decisions. “The department will move to the Supreme Court within a week against the decision of Revenue Tribunal Kathmandu,” director general at the IRD Tanka Mani Sharma said.

Source: THT