If any government official and private sector individual is found to be colluding to evade taxes, then they are liable to face jail terms, according to a new law endorsed by the Federal Parliament today.
According to the Revenue Leakage (Investigation and Control) Act – endorsed by the Federal Parliament – if civil servants and businesspeople are found to be collaborating to evade taxes, then the civil servant will be suspended till the case is settled and could also face a minimum jail term of six months to a maximum of five years, depending on the volume of the revenue leakage. “If any government official is booked by the Department of Revenue Investigation (DRI) for investigation of revenue leakage, the official will be automatically suspended until the issue is resolved,” it reads, adding that the defrauder will also have to pay a fine of 100 per cent to 200 per cent of the misappropriated amount. “If the revenue leakage is below Rs 5 million, the guilty will be imprisoned for six months, whereas for revenue leakage of above Rs 5 million to Rs 10 million, the jail term has been fixed at six months to one year.”
Likewise, the offender will face a jail term of one to three years for revenue leakage from Rs 10 million to Rs 30 million. “If the guilty is found to be involved in revenue leakage of over Rs 30 million, then they will be imprisoned for three years to five years.”
But the act has given the respite for revenue leakage due to genuine mistake. “If the revenue leakage occurred due to a genuine mistake, and the amount is up to Rs 5 million, the guilty could receive half the jail term and will have to pay only half the fine,” the new act reads, adding that the guilty will have to face a jail term and pay the maximum fine, for amounts beyond Rs 5 million.
However, the earlier act has that any offender involved in revenue leakage had to face a jail term of only up to three years and pay a fine that was 200 per cent of the misappropriated amount.
According to chairman of Finance Committee under the Federal Parliament Krishna Prasad Dahal, the law has been amended as the previous laws to control revenue leakages were not effective enough.
According to the Revenue Leakage (Investigation and Control) Act – endorsed by the Federal Parliament – if civil servants and businesspeople are found to be collaborating to evade taxes, then the civil servant will be suspended till the case is settled and could also face a minimum jail term of six months to a maximum of five years, depending on the volume of the revenue leakage. “If any government official is booked by the Department of Revenue Investigation (DRI) for investigation of revenue leakage, the official will be automatically suspended until the issue is resolved,” it reads, adding that the defrauder will also have to pay a fine of 100 per cent to 200 per cent of the misappropriated amount. “If the revenue leakage is below Rs 5 million, the guilty will be imprisoned for six months, whereas for revenue leakage of above Rs 5 million to Rs 10 million, the jail term has been fixed at six months to one year.”
Likewise, the offender will face a jail term of one to three years for revenue leakage from Rs 10 million to Rs 30 million. “If the guilty is found to be involved in revenue leakage of over Rs 30 million, then they will be imprisoned for three years to five years.”
But the act has given the respite for revenue leakage due to genuine mistake. “If the revenue leakage occurred due to a genuine mistake, and the amount is up to Rs 5 million, the guilty could receive half the jail term and will have to pay only half the fine,” the new act reads, adding that the guilty will have to face a jail term and pay the maximum fine, for amounts beyond Rs 5 million.
However, the earlier act has that any offender involved in revenue leakage had to face a jail term of only up to three years and pay a fine that was 200 per cent of the misappropriated amount.
According to chairman of Finance Committee under the Federal Parliament Krishna Prasad Dahal, the law has been amended as the previous laws to control revenue leakages were not effective enough.
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