"We have seized the account books of some half a dozen firms and instructed the rest to furnish transaction and tax payment details from their automated accounting systems to the IROs within a week," said a source at the Inland Revenue Department (IRD).
The IRD officials preferred not to disclose the names of the firms, saying that the action was still at an early stage. However, sources said Anmol Catering, an importer and distributor of Korean cars, a leading media house and trading firms are taking the heat from the revenue administration.
Shanta Bahadur Shrestha, director general of Inland Revenue Department (IRD), said those firms were swooped down upon as part of the post-VDIS (voluntary declaration of income sources) action against tax evaders“.
"They neither complied with tax laws nor took advantage of the amnesty pledged under VDIS, and our information suggests foul play on their part" said Shrestha, elaborating that the IRD was also coordinating further action against businessmen who have shied away from the duty of a responsible citizenry.
As a start to its action, the IRD sent letters last month to some 900 firms and individuals whom it tagged as probable tax evaders, seeking property details and tax payment records from them.
Going by the VDIS Action Manual the result of the action initiated then should have concluded by now. However, officials said the changes in leadership at the IRD and poor coordination hit the investigations, slowing things up.“
"We have now narrowed the list further and added new names as well as gearing up the action," said Shrestha, elaborating that the department will be in a position to disclose wrongdoers and make public their names in about a month´s time.
If the IRD investigations establish that the firms flouted tax laws, they will be slapped taxes and fines totaling some 60 percent of the property involved. In case the firms refuse to comply, IRD has legal authority to seize such property and seek jail terms for the flouters through the courts.
milan@myrepublica.com
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