The National Board of Revenue (NBR) has adopted a tough stance against those businesses connected to fraudulence with regard to VAT payment.
The NBR’s VAT wing, since the outset of the current fiscal, has taken such a stance as it is alert this year about meeting the revenue target. So, the VAT wing has decided to conduct fresh raids at all VAT-dodging firms to recover dodged revenue. Though the NBR’s field offices conduct audit on business firms as a routine, a task force earlier was formed to expedite the audit and investigations in a tough manner, sources said.
The exchequer is now preparing a list of suspicious companies, and the field officials are conducting stringent moves against those dodgers, they said. NBR sources said, a number of commercial developer firms are involved in VAT evasion, and a large scale investigation is underway against them.
Field officials for VAT are now scrutinizing primarily VAT-related documents of 20 large developer firms, and have also found a substantial amount of VAT evasion by them.
Sources said, Dhaka South Commissionerate for Customs, Excise and VAT has already detected VAT evasion worth Tk 53 crore by some land developer companies.
Besides, Dhaka West Commissionerate, North Commissionerate, and VAT Audit Intelligence and Investigation Directorate are also carrying out such duties, and will submit conclusive reports on their findings soon. The NBR’s field-level officials from now will look into the proper use of machinery of different companies imported with tax rebate facilities, by visiting the entities, as there are allegations of misusing of such imported goods against many businesses.
Sources said, the Central Intelligence Cell (CIC) of NBR would provide the list of the factories that imported such machinery with duty-cut facility, and the commissionerate offices would look into whether the factories have set up the machinery properly at their factories.
The exchequer would take punitive measures against those if they find irregularities with regard to setting up of those machine goods, they said.
Currently, there are many interior design firms that earn hundreds of crores of taka designing commercial and other premises, but many of them do not pay VAT properly.
The revenue authority has decided to look into such firms’ VAT payment transparency.
NBR sources said, a list of top 8 interior design firms has already been prepared and VAT audit intelligence is working on it.
The listed companies are Charuta Private Limited, Vuumaatra Consultant, Zero Inch Interior’s Limited, Creative Interior, Archiden Interior, Dream Touch Architect Limited, Design Associate BD, and Wav Interior.
VAT Audit Intelligence and Investigation Directorate sources said, it has already sent notices to the respective firms about its drive asking for necessary documents to be prepared.
Besides, it also formed 8 committees with regard to who were now carrying out duties on the issue.
NBR sources said, they would expedite monitoring unknown importers in customs areas who import goods at 0 to 5 percent duty, and they would also conduct random checking on such importers.
CIC, Customs Intelligence and Investigation Directorate, and the Risk Management unit will carry out the duty to make sure of transparency even for small scale importers.
An NBR official concerned told Bangladesh Post, the revenue board faces shortfall every year, and that is why they are alert from the initial months of the fiscal to strengthen their monitoring to boost revenue earnings as well as foil tax dodging.