KATHMANDU, June 4: The Special Court (SC) on Sunday extended the remand of Director General (DG) of Inland Revenue Department (IRD) Chudamani Sharma for a week.
Sharma was produced before the court on Sunday, two days after the Commisison for the Investigation of Abuse of Authority (CIAA) arrested him from his office on the charge of settling tax cases worth billion in a questionable manner. With the court order the CIAA can now continue its investigation into the accusations by putting him in its custody.
Sharma, was a member of the government-formed Tax Settlement Commission. He been accused of whittling down tax liabilities amounting to Rs 30.52 billion to Rs 9.54 billion for purportedly resolving disputed tax cases. Out of 1,726 applications registered at the commission seeking tax waiver in 2071 BS, it whittled down the taxes for 1,069 applications.
The Office of the Auditor General in a recent annual report questioned the tax settlements. “The commission was formed to free taxpayers from tax liability and it set a wrong precedent,” reads an excerpt of the report unveiled in mid-April.
CIAA had arrested him on Friday. The accusations against him include settling tax cases worth billions in a questionable manner, abusing his authority while settling taxes of big firms and accumulating wealth in illegal manner.
Meanwhile, Sharma, the accused, said that the anti-graft body's move to arrest him was an insult of parliament and government. "There is nothing wrong in my decision. I worked in accordance with the mandate of parliament and the minister. My arrest is mockery of the rule of law," Sharma told journalist on the court premises.