FinMin receives TSC report

Kathmandu, December 9

The Tax Settlement Commission (TSC) formed by the previous government to settle the outstanding revenue dues from disputed cases submitted its report to Finance Minister Bishnu Prasad Paudel on Tuesday.

TSC, during its eight-month long tenure, had received a total of 1,726 applications and settled 1,069 cases amounting to Rs 9.55 billion. The TSC’s tenure was terminated in mid-October this year.

Submitting its report to the finance minister, the commission has recommended a raft of reforms related to law and administration in the tax system to minimise cases of dispute.

Receiving the report of TSC, Minister Paudel informed that the government has been preparing to set up a permanent mechanism to settle the disputes among enforcement agencies and taxpayers. He also pledged to implement necessary reforms in tax laws as well as for development of human resources in coming days.

The TSC’s report has sought cooperation from tax enforcement agencies to effectively and efficiently implement the commission’s decisions. The decisions taken by the commissions formed by the earlier governments had not been fully implemented in 2001 and 2006, according to the report.

TSC had settled disputed cases with tax-payers by adopting harmonious negotiation tactics. However, a large chunk of the disputed cases were not directed to TSC for settlement. Before TSC was formed, government had said disputed revenue amount stood at Rs 48.15 billion.

TSC was formed under the chairmanship of chartered accountant Lumba Dhoj Mahat and comprised two members, Umesh Prasad Dhakal and Chudamani Sharma. Dhakal is a chartered accountant who was earlier affiliated with Office of the Auditor General and Sharma is the director general of the Inland Revenue Department.