IRO probes 790 firms

IRO probes 790 firms

Jul 29, 2014-

The Inland Revenue Office (IRO) has launched a probe into 790 business firms whose accounts do not tally with the records of the tax authorities for possible tax evasion.

The IRO put them under scrutiny after the Inland Revenue Department (IRD) sent a list of their names because of the mismatch.

When details about business transactions recorded in the traders’ accounts and the tax authorities’ accounts differ, it is called a mismatch in the tax system. Such problems usually appear when wholesalers and retailers submit differing transaction details to the tax authorities.

“We have started informing the firms who are under suspicion, and we will be conducting an inquiry into their dealings,” said Arjun Prasad Bhattarai, chief of the IRO, Parsa.

The firms under investigation for possible tax evasion include those dealing in noodles, cigarettes, alcohol and LPG. Among the firms being investigated, 590 have annual turnovers of less than Rs 2 million each while 200 firms have annual transactions of more than Rs 2 million each.

If the investigation reveals that the firms with mismatch problems have also been evading taxes, they will be fined an amount equivalent to the total tax payable.

For the last six years, there has been rampant mismatch in the tax system. Bhattarai said that in a bid to discourage such actions and make business firms responsible for tax clearance, the IRD had introduced a scheme last year under which firms facing such problems could pay taxes with a discount.

However, IRD officials said that the number of taxpayers who turned up to take advantage of the offer was less than expected.

Published: 30-07-2014 09:39

User's Feedback

Click here for your comments

Comment via Facebook

Don't have facebook account? Use this form to comment