NBR detects Tk1,358.89cr VAT evasion by 27 firms

The National Board of Revenue (NBR) has detected tax evasion of Tk1358.89 crore, which 27 companies did not pay to the government against their value-added tax (VAT) dues to the government exchequer, officials have confirmed. The Large Taxpayers Unit for VAT (LTU-VAT) under the NBR has detected the evasion through an internal audit of the unit, which targeted to scrutinize 64 firms in fiscal year 2017-18. Assistant Commissioner of LTU-VAT Bodruzzaman Munshi told the Dhaka Tribune: “Under the internal audit process of LTU-VAT for this fiscal year, we are scrutinizing VAT evasion by 64 firms. Of the firms, Tk1358.89 crore of VAT avoidance by 27 companies has been detected so far and we have realized Tk8.35 crore from the companies.” “Audit of other firms is going on,” he added. According to sources at LTU-VAT, the unit has been conducting internal audit at 64 firms, as they were previously involved with VAT evasion. Sources said that six teams, led by two assistant commissioners and four inspectors as their deputies have been formed to scrutinize the companies to dig out evidence of tax evasion. The LTU-VAT has instructed these firms to submit their reports revealing the amount of VAT they paid in the past five years, said NBR sources. The unit has also asked the firms to submit financial and other related documents, such as production process, product and service information, commercial documents, bank transactions and audit reports, according to VAT officials. The 27 firms whose VAT evasion has been detected include: China-Bangla Ceramic, Mutual Milk Products Limited, Agrani Bank Limited and Premier Bank Limited.

Tk61.95 crore by China-Bangla Ceramic

According to the revenue authorities, the China-Bangla Ceramic has evaded Tk61.95 crore of VAT during October 2013 to February 2016 period. The LTU-VAT has sent show-cause notice to the company under section 55(1) of VAT Act-1991. Contacted, Manager, VAT of China-Bangla Ceramic Mizanur Rahman said: “We have received the notice of revenue authorities and we will reply to their notice soon.”

Tk9.52 crore by Mutual Milk Products

The Mutual Milk Products Limited has allegedly avoided Tk9.52 crore of VAT, of the amount Tk3.88 crore of outstanding or VAT at source, while Tk5.64 crore for taking rebate illegally, said sources. The LTU-VAT has sent show-cause notices to them.

Tk4.49 crore by Premier Bank

Premier Bank Limited has dodged Tk4.49 crore VAT, of which Tk1.18 crore was evaded during 2010 calendar year. The revenue authorities have sent a final demand notice to the bank asking the money, according to sources. The bank avoided Tk3.31 crore VAT in 2014 calendar year. The LTU-VAT has sent final demand notice to the bank to realize the outstanding tax.

Tk57.74 crore by Agrani Bnak

The Agrani Bnak Limited has allegedly dodged Tk57.74 crore during January 2014 to September 2017 period, by not paying VAT to the government exchequer, said NBR officials. The LTU has sent show-cause notice to the bank authorities regarding the VAT evasion.