The department has been looking into 518 cases of fake VAT billing, which has emerged as a big challenge to the country´s tax system, inflicting loss of over Rs 10 billion to the national coffer.[break]
“Of the total of Rs 3.2 billion slapped on 294 firms, we´ve collected only Rs 23.3 million so far,” Rajan Khanal, director general of IRD told Republica on Sunday.
The IRD has completed investigation into 40 cases of tax evasion over the past fortnight.
“We are also reviewing the cases following requests by 28 firms for administrative review,” added Khanal.
If taxpayers are not satisfied with tax slapped by the department even after administrative review, they can appeal against the decision at the Revenue Tribunal within 60 days
The department has been looking into fake VAT bill racket through its head office and three area offices in Kathmandu as well as offices in Bhadrapur, Biratnagar, Dharan, Birgunj, Hetauda, Bharatpur, Bhairahawa, Lalitpur, Nepalgunj, Bhaktapur, Krishnanagar, Butwal, Pokhara, Simra, Janakpur, Lahan, Dhangadhi, Mahendra Nagar and Dang.
According to IRD, Large Taxpayers Office (LTO), Lalitpur is handling the largest number of cases (152 cases) and has settled 31 cases. It has slapped tax bills of Rs 1.11 billion on the defaulters. Similarly, IRD Area Office No.1 is investigating 59 cases and has slapped tax of Rs 241.9 million on evaders. The IRD head office, which is looking into 38 cases, has slapped Rs 1.01 billion on evaders in 34 cases.
Similarly, Inland Revenue Office (IRO) Area No.2 and Area No.3 have fixed Rs tax bills of Rs 157.7 million and Rs 148.58 million in 16 and 32 cases respectively.
IRD offices in Janakpur, Lahan, Dhangadhi, Mahendra Nagar and Dang have yet to start any investigation into the cases.
The IRD investigation that started from November, 2010, has found widespread use of fake VAT receipts, especially by big business houses.
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