IRD to summon CAs regarding VAT scam

HIMALAYAN NEWS SERVICE

KATHMANDU: Inland Revenue Department (IRD) has decided to summon the chartered

accountants (CAs) of the concerned 518 firms who have been accused of value added tax (VAT) evasion to unearth whether they were hand in glove in the multibillion scam.

“The department is organising a meeting of chartered accountants soon, director general at the department Tanka Mani Sharma said without elaborating.

The involvement of chartered accountants in creating fake VAT bills and adjusting accounts has been speculated from the very beginning of the value added tax scam.

Suspecting the involvement of some auditors in producing fake VAT bills, the government had enacted a provision of fine and action against ‘accomplices’ involved in defaulting VAT and income tax.

The Finance Ministry in its Financial Bill has said it will fine 50 per cent to the accomplice, who helps in issuing fake bills, evading tax and creating false transactions that hurt government coffers.

Chartered accountants involved in producing or approving fake bills deliberately have to pay 50 per cent fine, according to the new Financial Bill.

The Finance Ministry had also asked the Institute of Chartered Accountants of Nepal — regulatory body of chartered accountants — to take action against auditors, if found guilty in the fake VAT bills scam.

The Institute of Chartered Accountants of Nepal had taken action against some auditors following the request from the Inland Revenue Department at that time, a source at the Finance Ministry said.

The Public Accounts Committee (PAC) under the legislature parliament will reveal the authentic and complete names of firms involved in VAT scam

within six days, said chairperson at Freedom Forum Taranath Dahal who had initiated to reveal the names of VAT defaulters.

“The government should bring all chartered accountants under its investigation after receiving an authentic list of firms.”

Inland Revenue Department has completed the

investigation of the financial aspect of the value added tax scam calculating the revenue loss by 518 firms, Dahal said. “Now, the government should bring other stakeholders involved in that fraud to book.”

The department had recently completed the investigation of 518 firms involved in VAT fraud by producing fake bills. It had assessed a total of Rs 6.59 billion revenue collection from those firms.

The Inland Revenue Department will provide the details of the firms involved in the VAT scam to the Public Accounts Committee within six days.