Tax Clearance Commission inundated with complaints

- POST REPORT, Kathmandu

Mar 25, 2015-

The newly-formed Tax Clearance Commission (TCC), which collects unpaid taxes and issues tax clearance certificates, has been inundated with 3,000 complaints about tax related problems in the past one month.

The complaints are related to tax authorities failing to recover taxes, entrepreneurs falling behind in paying taxes, and taxes erroneously shown as outstanding due to being paid under a different heading, the TCC said.

Speaking at an event organised by the Nepal Chamber of Commerce on Wednesday, TCC Chairman Lumbha Dhwoj Mahat said the government was yet to recover Rs40 billion in unpaid taxes.

“As the present system paying taxes is a self-assessment system, a huge amount has remained outstanding due to lack of information among taxpayers about the procedure of paying taxes, tendency to evade taxes and tax authorities not being prompt in recovering outstanding taxes,” he said. As of last year, 110,000 individuals and firms had not cleared their taxes due to various reasons, according to the Inland Revenue Department.

The government established the TCC a month ago with the objective of recovering unpaid taxes. Its tenure has been fixed till the end of the current fiscal year.  

Explaining the reason for forming the TCC, Mahat said that it was designed to help taxpayers who have been facing problems while paying taxes.

He said the government had formed a similar commission eight years ago too. “The commission helps to settle disputes related to tax payment besides allowing taxpayers to put forth their grievances about errors committed by tax officials,” he said.

Earlier, taxpayers had no recourse but go to court if they had a complaint over tax matters.

Similarly, Umesh Dhakal, a member of the TCC, said that the commission had been formed to provide taxpayers an opportunity to clear their dues by the end of the fiscal year 2013-14.

“The TCC looks at tax cases pending at court or tax offices, taxes shown as outstanding due to being paid under the wrong heading and tax dues of customs offices,” he said.

Meanwhile, businessmen said that they had been made to suffer due to the confusing nature of the tax payment process.

Rajesh Kaji Shrestha, president of the Nepal Chamber of Commerce, said lack of right assessment of the tax amount, delays in the settlement of tax related disputes, tedious tax payment system and cases of mismatch were among the major problems.

 

Published: 26-03-2015 10:05

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