233 entities escaped 1,676 C of VAT during the financial year 21


The National Revenue Council (NBR) has ordered all customs offices and customs posts to remain open

VAT Intelligence finds government and private companies include banks, insurance agencies and financial institutions among top fraudsters

A whopping total of Tk 1,676 crore in value added tax (VAT) was evaded by some 233 public and private organizations during fiscal year 2020-21, an investigation by the Audit Wing, d ‘investigation and information on VAT of the National Tax Council. (NBR) discovered recently.

The report consisted of audit findings and other inspection reports collected from across the country, where the names of various governmental and non-governmental organizations, including banks, insurance companies and other financial institutions, were listed on the report. list of the main VAT fraudsters.

According to the report, of the 233 entities, the Chittagong Port Authority (PCA) escaped Tk 462.28 crore in VAT, followed by Premier Bank with Tk 145.16 crore, United Commercial Bank 125.73 crore in VAT. Tk, Basic Bank 101.51 crore of Tk, Janata Bank Tk49.52 crore, American Life Insurance Company Limited Tk48.84 crore and Sonali Bank avoided paying VAT of Tk44.27 crore.

Others included ICB Capital Management with Tk26 crore, Delta Life Insurance Tk25 crore, DPS STS School Tk23 crore and Lanka Bangla Finance dodged Tk20 crore.

Moinul Khan, director general of the Audit, Intelligence and Investigations Directorate of VAT, told Dhaka Tribune on Monday: “Last year we conducted on-site audits and operations in various organizations, where we have found evidence of huge amounts of tax evasion. Among them are various governmental and non-governmental organizations.

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“However, in this case, we have received cooperation from everyone. Many of them have already deposited money. The rest will be deposited soon,” he added.

In addition, the report also indicated that another Tk134.6 crore of VAT evasion was discovered by various sources, media reports, confidential allegations against individuals and preliminary investigations against certain organizations of the NBR.

After the discovery of financial discrepancies, the said companies deposited about Tk 8.3 crore into the government treasury shortly thereafter, according to the report.

On-site inspections carried out by VAT Intelligence also revealed discrepancies in the records, on which companies paid VAT on the spot.

Among these, the organizations included Akhter Furniture, which paid 39.63 crore Tk, Mohammadi Trading Tk38.99 crore, Charuta Private Limited Tk30.36 crore, Ujala Paints Tk27.14 crore, Hotel Lakeshore Tk16.98 crore, Food Village Plus Tk13.52 Crore and Food Village Limited Tk12.93 Crore, among others.

According to the VAT Intelligence Department, they discovered VAT fraud in five ways during their investigations.

First, some of the registered companies displayed a low turnover rate in their monthly returns by hiding details of their actual purchases of goods and sales of manufactured products.

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Second, some companies have produced several annual public accountant (CA) reports, in which it was found that the actual accounting information was not disclosed to the VAT authorities.

Third, many businesses pay VAT on sales but do not deduct VAT at source on expenses. This is a huge amount of VAT evasion.

Fourth, many of them operate without being subject to VAT.

According to VAT law, it is mandatory to register for VAT before doing business. Some of them illegally collect VAT from buyers without re-registering.

And fifth, some of them register for VAT but do not deposit the amount collected from consumers to the State Treasury according to the law.

Some of them don’t even issue VAT invoices correctly.

Read also – Survey: 60% of stores in Dhaka do not pay taxes

The VAT intelligence service investigated this in two ways. The organization selected and conducted audits by creating an annual audit program based on intelligence information.

The other was to conduct a search operation under Article 83 of the VAT Act.

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