The VAT Intelligence Division has filed a case against eorange for evading VAT worth Tk13 lakh.
Confirming the matter to Dhaka Tribune, VAT Intelligence Division Director General Moinul Khan said: “We have been conducting an investigation on eorange’s VAT evasion for a long time now. After confirmation, we sent them a letter, asking them to explain themselves.
Also Read - Commerce Ministry issues show-cause letter to Eorange
“Since they did not respond to our letter, we took the decision of filing a case against them,” he added.
The case report has already been sent to Dhaka North Customs, Excise & VAT Commissionerate for further development. VAT Intelligence also requested the commissionerate to monitor eorange’s business.
Earlier on June 8, the agency conducted a raid, led by its Deputy Director Tanvir Ahmed, at eorange online shop’s Gulshan office.
Also Read - Eorange deliveries delayed further as owners sued, imprisoned
During the raid, the agency found evidence of VAT evasion. They also found out that eorange sells products on different online platforms, but does not properly pay VAT against the commission they get from those sales.
Former eorange owner Sonia Mehjabin helped VAT Intelligence by providing VAT-related documents during the raid. The agency also seized other documents related to sales while searching the office.
According to the documents, the company has sold products worth Tk245.75 crore and received commissions worth Tk3.4 crore.
Also Read - Eorange sued for embezzling 1,100C
Eorange was supposed to pay 5% of the commission, which is Tk19.39 lakh as VAT. But they only paid Tk6.23 lakh. During the investigation, the agency noticed that eorange hid the actual sales information and evaded VAT worth Tk13.16 lakh -- a violation of the VAT law.
Shahab Uddin, vice president of the e-Commerce Association of Bangladesh, said: "We have been receiving several complaints against the platform, along with others. We have suspended the membership of numerous organizations including eorange, following complaints.
“We have issued explanation letters to at least nine platforms out of which the memberships of four have been suspended as their answers were not satisfactory,” he added.