Inland Revenue Department (IRD) has slapped a total of Rs 3.45 billion tax including fine on 365 firms — till October 19 — out of 518 firms, which were involved in Value Added Tax (VAT) evasion by producing fake invoices.
Of the total amount, Rs 1.91 billion comes under Value Added Tax (VAT) evasion, Rs 1.57 billion under Income Tax evasion and Rs 23.8 million under Excise, the department said.
The amount includes both taxes plus fine, it said, adding that the department has set the mid-November as its target to finish the investigation of rest of the firms.
Of the remaining cases, Large Taxpayer Office is handling 105 cases and Inland Revenue Office Area Number 1 office Babar Mahal is undertaking 11 cases. Similarly, 37 cases have been sent to the Inland Revenue Offices in the different parts of the country including Bhadrapur, Biratnagar, Dharan and Lahan.
"Of the total, Rs 720 million has already been collected," the department informed. A total of 65 cases have approached the Administrative Review Committee under the department seeking review of the tax slapped on them.
Taxpayers can review the decision at the Administrative Review Committee under the department, if they are not satisfied with the decision. According to the existing law, those firms can approach Revenue Tribunal within sixty days, if they are not convinced with the Inland Revenue Department decision.
Inland Revenue Department has started the investigation into the fake VAT bill scam from last November, after it discovered widespread use of fake VAT receipts.