Through these settlements, the government will be able to recover Rs 9.54 billion in different taxes.
The commission, which was formed in February to settle long-pending tax disputes, settled 1,069 applications out of 1,726 through mutual negotiations and also through thorough analysis of the tax issues. It was authorized to settle tax-related disputes, including cases sub judice in different courts. It, however, was not allowed to settle cases of criminal nature like VAT fraud.
According to a statement issued by Inland Revenue Department, LD Mahat, chairman of the three-member commission, handed over its report to Minister for Finance Bishnu Prasad Paudel on Wednesday.
Business community had long been demanding for settlement of tax-related cases pending since long. They have been saying that such cases are worth around Rs 4 billion.
In its recommendations, the commission says the government has to create an environment for making tax determination more objective with sufficient documentations and basis. It has also suggested to the government to provide necessary trainings to tax officials. It has also advised the government to implement settlements made by similar commissions formed in the past.
The government had formed similar commission also in 2007.
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