An operation by the VAT Audit, Intelligence and Investigation Directorate has uncovered concealed information about the sales figures of Runner Automobiles– the pioneer of manufacturing two-wheelers in the country, worth Tk70.47 crore.
The amount of tax evaded by the company by masking the actual sales information is about Tk20.86 crore.
The VAT intelligence said in a statement that the company had been sued for discrepancies in the actual sale price and return filings in the last five years.
The department has also sent a letter to the Dhaka North VAT Commissionerate to take legal actions to recover the evaded VAT, and at the same time, the concerned circles and divisional offices have been directed to strengthen the supervision of Runner Automobiles to ensure proper submission of VAT invoices.
Meanwhile, Runner Auto officials have denied the allegation, saying the company has been compliant with all relevant rules and laws.
“We are saddened by the sudden shock of case filing,” said Runner Automobiles Chief Financial Officer (CFO) Shanat Datta.
“We have been cooperating with the VAT Intelligence officials by providing detailed documents on time. The case was filed on the very day when we submitted our last batch of documents they asked for,” he added.
Asked about the consequences, the finance head of the listed firm said: “We are confident that we have been doing business in a compliant manner, we do not have any such provision for the asked amount.”
Runner made over Tk900 crore contribution to the national exchequer in the five fiscal years up to 2020-21, of which VAT was Tk154.31 crore, Shanat Datta added saying: “The claimed figure of Tk15.59 crore in VAT evasion must be a misunderstanding.”
Shanat also opined that his firm will take the appeal route.
According to VAT intelligence, the case was filed following a raid by a VAT intelligence team of the Runner Auto's head office last March in response to a complaint from a buyer who wished to remain anonymous, officials said.
In a statement, the VAT intelligence directorate said Runner Auto has evaded Tk15.59 crore in VAT by hiding sales of Tk70.47 crore from July 2016 to June 2021.
According to the VAT Act, the company now has to pay the evaded amount along with a monthly interest of 2%.
The company has two options now – paying the claimed amount as a total of unpaid VAT, and the accrued interest on the figure, or going for an appeal. As per the information, the company will take the appeal route.
