5 Companies Found Guilty of Evading Taxes

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5 Companies Found Guilty of Evading Taxes

January 14: The Supreme Court has ruled against five companies in cases of tax evasion. The apex court has found the companies guilty of evading both Value Added Tax (VAT) and income tax.

A division bench of Chief Justice Cholendra SJB Rana and Justice Prakash Kumar Dhungana on Monday (January 13) rejected the claim made by the defendants that they did not use fake VAT bills to evade taxes amounting to millions of rupees.

The Supreme Court upheld the accusation made by the Revenue Tribunal that the five companies had faked VAT bills to evade taxes.

Those convicted by the Supreme Court include Bhatbhateni Departmental Store, Arun Enterprises, Shankar Okygen, AIT Pvt Ltd and BS Baniya Store and Firm.

The supreme court has ordered the defaulting companies to pay the VAT as well as income tax, fines and interest, informed the court’s spokesperson Bhadrakali Pokharel.

The Inland Revenue Department during a raid on February 2, 2011, had found Bhatbhateni Departmental Store of evading taxes by presenting fake VAT bills. After reviewing the documents from 2007 to 2011, the department had found that the store was liable to pay a total of Rs 226.7 million to the state.

The department had also raided the office of AIT Pvt Ltd on December 26, 2009 and found the company of faking VAT bills. The company has been accused of evading Rs 2.49 million by presenting fake bills worth Rs 12.1 million.

Likewise, Arun Enterprises was found guilty of evading taxes worth Rs 5.16 million by preparing fake bills worth Rs 36.5 million.

The department had found that Shankar oxygen was liable to pay Rs 2.2 million while BS Baniya Store and Firm has been accused of evading tax of Rs 57,584.

The Revenue Tribunal had demanded equal amount of fine from the companies.  

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