The large taxpayers unit for Value added Tax (LTU-VAT) under the National Board of Revenue (NBR) has started its audit on 40 companies, to track down firms that are involved in tax evasion.
NBR officials confirmed the matter to the Dhaka Tribune Sources at the revenue board added that the 40 companies, which are being audited, are comprised of multinational companies, private banks, pharmaceutical companies, gas fields and several government organizations.
Sources said that six teams, led by two assistant commissioners and four deputy commissioners, have been formed to scrutinize the 40 companies for 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 LTU 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,” added an official of the unit.
Responding to a query, Md Matiur Rahman, LTU-VAT Commissioner told the Dhaka Tribune: “The LTU-VAT started the audit from September, 2017 and selected the companies that were found involved in VAT evasion.
“The audit is going on and we have found initial evidence that several companies are involved in VAT evasion. The China-Bangla Ceramic Ind Ltd (CBC) was found evading VAT amounting to Tk61.95 crore.”
Matiur stated that the LTU has already started the proceedings to collect the evaded tax by sending a demand notice to the firm.
The CBC earlier evaded VAT amounting to Tk19 crore during March to November in 2016, according to NBR. The company could not immediately be reached for comment.