IRD recovers Rs 1.52b in unpaid taxes
KATHMANDU, APR 05 -
The Inland Revenue Department (IRD)’s tax recovery drive has started to yield positive results.
The department has managed to recover outstanding taxes worth Rs 1.52 billion—Rs 1 billion under income tax and Rs 5.2 million under value added tax (VAT)—as of the eighth month of this fiscal year.
IRD has been battling to recover unpaid taxes worth Rs 24 billion—income tax worth Rs 20 billion and VAT Rs 4 billion—from several businesses for a long time. It says there are around 700 tax payers who have not cleared their taxes worth around Rs 1 million each, while 50 tax payers are yet to clear Rs 10 million each.
“Our recovery drive is yielding positive results,” said Tanka Mani Sharma, director general at IRD. “The campaign will be continued so that maximum recovery could be made.”
Sharma attributed the increased collection to strict tax administration, continuous off-site and on-site inspections, and proactive tax monitoring.
IRD has adopted some strict measures, including suspending tax defaulters’ bank accounts, seizing their assets and even putting their property under the hammer. The department has so far suspended bank accounts of some 200 firms.
Of the total due of Rs 24 billion, IRD effectively has Rs 9 billion to recover, according to Sharma. “As a large number of taxpayers have filed cases at the Revenue Tribunal, we have to recover dues from those who have neither filed cases nor are interested in clearing their liabilities,” added Sharma.
As per the tax law, until a case is decided by the Revenue Tribunal, a quasi-judicial body to review tax assessment, the tax administration cannot force the taxpayer to settle his/her liabilities.
Meanwhile, in the period between mid-January and March-end, the department monitored more than 6,000 firms and collected Rs 5 million as penalty from 700 firms for not abiding by the tax law. Sectors that were monitored include medical, liquor, medical institutions, hardware and textile.
“The monitoring that was launched to check tax anomalies was successful, as it discovered that a large number of businesses were being conducted without registering in VAT and permanent account number. Even registered firms were not clearing their taxes on time,” said Sharma.
Source: The Kathmandu Post
