VAT Audit, Intelligence and Investigation Directorate’s Assistant Director Md Mohiuddin led the drives in response to a complaint by a consumer
A team of VAT detectives has conducted drives at two LPG conversion stations in the capital for allegedly operating businesses evading a huge amount of taxes.
The VAT detectives have found proofs that those companies were evading taxes, said sources at the VAT Audit, Intelligence and Investigation Directorate on Thursday.
VAT Audit, Intelligence and Investigation Directorate's Assistant Director Md Mohiuddin led the drives on 23 December, in response to a complaint by a consumer.
The VAT intelligence officers found two companies named Gen Air Technology and Gen Air (BD) Ltd at the same address in the Mohammadpur area.
The companies charge Tk50,000-60,000 as conversion charge for each vehicle.
The detectives did not find any VAT registration by those companies. The companies also did not submit any VAT return in the Mohammadpur VAT Circle in the last two months.
Abul Kashem Rony, who filed complained with the Vat Intelligence, said, "When I paid Tk50,000 as conversion charge, they gave me a draft cash memo. When I demanded a VAT Challan Musok-6.3, they started showing various excuses. Later, I suspected that they are evading taxes. I hope that legal actions will be taken against them after investigation."
The VAT detectives found that those companies are registered under a Chattogram address, but they were not registered for operating businesses in the capital. According to the VAT law, if a company registered under one particular address wants to operate businesses at a different address they have to register centrally and they have to submit monthly VAT return for all the business entities after including them into online VAT system.
The detectives found that the companies in Mohammadpur were operating by hiding information and have not declared their accounts to the VAT authority.
During the drives, the VAT officials saw that they were running this business secretly without paying VAT since September 2020.
The VAT detectives have seized business documents and data regarding their services from their computer.
During initial investigation, the VAT detectives found information on services worth Tk4 crore sold by the companies in the last four months.
A process to file cases under the VAT law after examining the documents is underway.