Company “escapes” Tk 84.8 million VAT thanks to false declaration
FE REPORT |
Sept. 16, 2021, 9:48 a.m.
A tax intelligence team uncovered an alleged tax evasion worth Tk 84.8 million by a company through false claims on imports and local marketing with no added value.
Officials said a value-added tax (VAT) intelligence team reported findings on the Bashundhara steel complex, owned by the Buildt-red group.
A spokesperson for the company denied the accusations and called the report “one-sided.”
During an investigation, the intelligence team discovered that the company had imported products as a manufacturer under concession rights but sold them as trading companies to other companies with no added value or no change. form or profile, indicates a press release published Wednesday by the direction of the VAT.
“The company abused the installation of concession rights under a special regulatory decree (SRO) of the NBR, because its imported products were not raw materials,” he alleged.
The Directorate of Audit, Intelligence and Investigations of VAT on Wednesday filed a complaint under the VAT law against the company involved in the manufacture and supply of pipes.
The company, headquartered in Tejgoan in Dhaka, has its factory in Manikganj.
In August 2015, Buildtrade Group purchased the ownership of the company from the Bashundhara Group.
The tax detectives, led by the deputy director of VAT intelligence, Md Mahidul Islam, carried out an investigation from July 2015 to June 2019 and detected some irregularities.
The investigation report was prepared by cross-checking the company’s annual audit report prepared by accountants, monthly VAT returns, copies of cash flow statements or other documents.
The wing allowed the company to place documents and explain the reason for self-defense.
The team detected an import stage VAT evasion valued at Tk 18 million, customs duties (CD) of Tk 9.5 million, and regulatory duties valued at Tk 0. , 3 million Tk.
Despite being registered as a limited liability company, investigators said, it violated the mandatory provision for preparing the annual financial report.
During the investigation, they discovered that the company had only audited the report for the year 2014-15. The company did not submit the audited financial report to the VAT and income tax authorities.
According to the audit report, the company did not deduct any VAT at source during the 2014-15 financial year.
The VAT team discovered a mismatch between the current account and the term account, an illegal reimbursement request in various forms, the sale of imported goods on the local market without registering in the register of import products.
The TVA intelligence team forwarded the case to the western area of Dhaka for legal action.
Sardar Md Amimul Ehsan, director (VAT) of Buildtrade Group, however, refused to accept the allegation and claimed that VAT intelligence services had not authorized self-defense.
“We paid the VAT in accordance with the law in force. The request was raised unilaterally,” he added.