Those facing actions for not complying with the DRI´s directive, which was issued as per the instruction of the parliament´s Public Accounts Committee (PAC), include Casino Rad, Casino Venus, Casino Grand, Royal Casino, Anna Casino, Casino Shangri-La and Fulbari Casino, along with Casino Nepal.[break]
“We waited till late, but eight tax defaulting casinos continued to flout tax laws and turn deaf ears to PAC´s instructions to clear dues within 35 days,” said Mahesh Dahal, director general of DRI. He told Republica that the department would write to Ministry of Tourism and Civil Aviation (MoTCA) on Sunday to annul their operating licenses.
Two casinos -- Everest and Tara -- came out clean through the process though. However, sources said even the fate of their operations hangs on the balance because they too are managed by Nepal Recreation Center (NRC) that has not settled due liability of other casinos.
“Besides, its promoters are on most-wanted list of the police for flouting Gambling Law. So, it is not easy to predict how the government will deal with Everest and Tara,” said a source.
PAC had instructed the government on Dec 28 to scrap the operating licenses of casinos that were found flouting existing laws, giving them one last chance of 35 days to settle all their dues. Based on that instruction, the DRI on Jan 9 had issued a stern notice to all casinos defaulting royalty and fines payment, asking them either to clear all accumulated dues within 35 days or face revocation of their operating licenses.
Following the notice, Casino Rad and Casino Grand paid their royalty, but bothered not to clear fines emanating from the delayed payment of royalty.
“Their accounts still show dues of over Rs 4 million each. Hence, going by the, PAC´s instruction, we are recommending MoTCA to annul their licenses as well,” said Dahal.
The managements of Casino Shangri-la and Royal paid both royalty and fines for this fiscal year. But they refused to pay previous years´ outstanding taxes, arguing that the liability was accrued by the previous management (NRC) and it was the responsibility of NRC.
The DRI officials said the department could not accept their argument because the party that took over the management must have known and accepted all assets and liabilities while jumping into the business.
“The dues stand in the name of casinos and clearly the responsibility of clearing it rests on the existing management. It can´t say it had no knowledge of the liability or will not pay it because it was not accrued during its period,” said Dahal.
Casnio Nepal, Anna and Fulbari, on the other hand, did not simply response to the DRI´s call.
Dahal said DRI recouped royalty and fines of some Rs 165 million while implementing the instruction. But casinos still refused to pay royalty and fine worth Rs 140 million.
Tax defaulters facing action
Casino Nepal
Casino Rad
Casino Venus
Casino Grand
Royal Casino
Anna Casino
Casino Shangri-la
Fulbari Casino
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