KATHMANDU, Dec 25: The Department of Revenue Investigation (DRI), in its recent move, has filed cases against number of firms and individuals on charge of defaulting taxes and misappropriating foreign currency that caused the state revenue loss of around Rs 118.11 million.
DRI has filed a case against proprietors of Shree Ram Tobacco Udyog in Butwal Municipality-12, Rupandehi, on charge of carrying out transaction without using the government revenue stickers and tax invoices to embezzle taxes.
The company's proprietors – Tan Bahadur Pandey, Kamal Kishore Malpani, Chunna Prasad Sharma Poudel, Shrawan Kumar Beriwal, Balram Adhikari, Ram Prasad Dhakal and Umadevi Sharma – were found involved in the misconduct. The department has sought cash penalty of Rs 103.22 million and a jail term of up to three years from the accused.
According to the DRI, the accused with the help of five trading companies – Shyamlal Banjade Trade Center, Jay Mahalaxmi General Stores, Nava Annapurna Stores, Sunny Stores and LG Trade Center – were found doing business without using tax invoices to evade taxes. The department has slapped a fine of Rs 4.07 million and three years of jail term on the proprietor of the five firms.
In a separate case, Kamal Prasad Tiwari, proprietor of New Laligurans Enterprises in Ramechhap district, has been accused of evading value added tax and income tax worth Rs 5.93 million by using fake invoices. Likewise, the department filed case against Ashfaq Mirza, an Indian citizen, for misappropriating foreign currency worth Rs 4.87 million. Mirza was found carrying Saudi Riyal 159,000 in false bottom while traveling to Dubai.
The DRI has intensified its action against defrauding firms in recent years. Since the government brought the DRI under the purview of the Prime Minister Office in March 2018, the department has filed cases against 515 tax defaulters including eight government officials. The department's investigation shows that the accused were found to have misappropriated taxes worth Rs 12.31 billion.
In the first five months of the current fiscal year, the department grilled 76 tax evaders on charge of causing revenue loss of Rs 3.46 billion. Similarly, it filed cases against 130 individuals on charge of misappropriating foreign currency worth Rs 646.8 million. Likewise, 130 firms were found using fake invoices to evade taxes worth Rs 12 billion.