DRI files cases against six firms for evading Rs 4.18 billion in taxes

In the past three days, the Department of Revenue Investigation (DRI) has filed cases – in Patan High Court – against six firms on the charge of fake Value Added Tax (VAT) bills. They have been alleged to be involved in using fake VAT bills and smuggling of the goods to evade the taxes worth Rs 4.18 billion, according to a press note issued by the department.

Unique Wide International Pvt Ltd operating in Kathmandu Metropolis-1 has been charged for using fake VAT bills to evade the taxes amounting Rs 378 million. The company purchased the fake VAT bills from proprietor of New Unique International Bhuvan Pandey, according to the department, which sought to recover the amount from the duo and the jail penalty as per the rule. The department on Monday filed the case against the owner of Unique Wide International Pvt Ltd and New Unique International and a chartered accountant for dodging revenue and using fake VAT bill, the press note reads, adding that Jeevan Basnet – the owner of these firms that dodged the revenue and Bhuwan Pandey is the chartered accountant, who supplied fake bills to these firms.

“These firms dodged VAT worth Rs 124.22 million, income tax worth Rs 228 million and capital gains tax worth Rs 25.74 million,” according to director general at the department Dirgha Raj Mainali.

The department has sought to confiscate Rs 378 million from them and a fine equivalent to that amount as per the Revenue Leakage (Investigation and Control) Act, he said, adding that the department has so far filed cases worth around Rs 8 billion against people in fake VAT bill scandals for irregularities. “We are investigating fake VAT bills worth around Rs 14 billion.”

Likewise, the department today filed a case against High Tech International – that operates in Sorhakhutte of Kathmandu as it was found to have evaded taxes of Rs 2.42 billion through smuggling of goods. The department has accused the firm of not making the customs declaration of most of the imported goods and evaded taxes through under invoicing.

The department also sought to recover Rs 1.39 billion from three firms – JSS Mobile and Services Pvt Ltd, Shree Shyam Impex and Shree Shyam Baba Enterprises – which are operating their businesses in Sanepa of Lalitpur district. They have also been charged for smuggling of goods hurting the state treasury.

The department said that its team confiscated hard cash of Rs 9.90 million earned from smuggled gold in Bhairahawa, in a separate incident. The department has charged proprietor of Sony Jewelers Sunil Sunar and his helper Amit Pariyar and started further investigations.