KATHMANDU, Dec 8: The Inland Revenue Department (IRD) has warned taxpayers not to carry out commercial transactions through their personal account.
Issuing a public notice, the tax authority said those failing to comply will face a cash penalty of Rs 5,000 or two percent of the transacted amount, whichever is more, if found breaching the government rule. The taxpayers have been cautioned not to accept commercial payment made through cheque, QR or any forms of electronic means.
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The Finance Act 2024 has maintained the provision barring commercial transactions using a personal account.
Last year, the IRD and Financial Intelligence Unit of Nepal Rastra Bank traced a number of cases of taxpayers conducting commercial transactions through personal bank accounts, which were suspected for tax evasion by concealing business transactions. In fiscal year 2023/24, suspicious transactions totaling around Rs 12 billion were recorded via this channel, while 113 cases were forwarded for further investigation.
Meanwhile, the IRD has said the tax authority will be considering risk-based tax assessment of large taxpayers. Issuing a press release, the IRD said it will be continuing the complete tax assessment of all the taxpayers related to large taxpayer and medium taxpayer offices.
Entrepreneurs have been protesting the IRD’s move on the complete tax assessment.
