The Department of Revenue Investigation has filed cases against 238 individuals on the charge of tax evasion in various district courts, seeking Rs18.32 billion in fines and amount in question plus up to three years’ imprisonment. According to the department, it scrutinised 81 cases of revenue leakage over the period.

Dirgha Raj Mainali, director general of the department, said the cases were related to smuggling of gold, vehicle parts and mobile sets, misuse of letter of credit and money transfer by hundi, among others.

During the review period, the department filed 64 cases against 104 individuals involved in transferring money through illegal channels. It is illegal for migrant workers to send back money through hundi.

In another case, the department seized 7 kg of gold worth Rs35.58 million being smuggled over the Rasuwagadhi-Syaphru road. The smugglers had hidden the contraband in containers transporting apples from China.

The department sought a Rs177.94 million fine against importer Sher Gyalbo Ghale for tax evasion and illegal foreign exchange transaction. In a case filed at Rasuwa District Court on May 16, the department sought a six-year jail term against Ghale.

Vehicle parts importer Rajesh Prasad Kalwar, proprietor of New Kiran Spares and Kiran Trade and Suppliers, has been charged with engaging in underinvoicing with the intent of evading taxes.

According to the department, Kalwar had been selling spare parts at prices lower than the cost price to avoid government taxes. The audit report Kalwar submitted to the tax office showed transaction amounts different from those shown in the value added tax and income tax forms. The department filed a case against Kalwar in Kathmandu District Court on May 31 seeking a Rs146 million fine.

The department has sought a Rs305.24 million fine against Kiran Devi Gupta, proprietor of Sonu Enterprises, and a Rs1.66 billion fine against Anukesh Kumar Sah and Bijay Kumar Sah, residents of Gaur Municipality-5 of Rautahat district, on the charge of smuggling gold.

The department has also initiated proceedings against traders on the charge of misusing letter of credit. According to the department, traders Gauri Shankar Gupta, Chandrakala Acharya and Bhupal Chand colluded with customs agent Khemraj Bhusal and opened letters of credit to import PVC gypsum laminated ceiling board, a material used to construct false ceilings, from Dubai. But the traders actually used the letters of credit to pay for importing cigarettes which they sold in India and imported Indian boards to sell in the domestic market. The department said it sealed their warehouse in Rupandehi and filed cases against them.

Vehicle and consignment tracking system launched

KATHMANDU: The Department of Revenue Investigation has launched a vehicle and consignment tracking system to check possible tax evasion by traders. Under the system, traders need to submit details about the goods they are shipping from one place to another. According to the department, the traders need to provide details of the customs declaration, types of goods and their respective quantities, registration numbers of the vehicles carrying the cargo and the profiles of the drivers online. The tracking system shows the whereabouts of the vehicles at any given time.

Dirgha Raj Mainali, director general of the department, said the paperless system would help traders by reducing the cost of trading besides making the tracking system more effective. According to him, the system will also allow tax officials to check the vehicles transporting the traded goods at any location in case any misconduct is suspected.