KAI Aluminum accused of evading Tk8.64cr in VAT, case lodged
The investigation report has been sent to the Dhaka North VAT Commissionerate for taking legal action to recover the evaded VAT
The VAT Audit, Intelligence & Investigation Directorate has filed a case against aluminium profiles manufacturer KAI Bangladesh Aluminum Limited over allegations of evading around Tk8.64 crore in VAT (value-added tax).
An inspection team, headed by VAT intelligence's Assistant Director Mahidul Islam, scrutinised the company's activities dating between July 2013 and June 2017. The probe body prepared its report after cross-checking the data they obtained from the annual audit reports, VAT returns, and copies of treasury invoices and other documents submitted by the company at different times.
According to the report, the company had paid VAT to the tune of Tk23.21 lakh at source against various services during the period under investigation while the actual amount of VAT payable by the company was about Tk1.48 crore.
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In this case, the company evaded over Tk1.24 crore in VAT by concealing information finds the probe body. According to the VAT Act, the company has to pay a little over Tk81 lakh in interest – counted based on 2% monthly interest – against the dodged VAT.
The investigation also finds that the company evaded about Tk1.2 crore in VAT during the period under investigation by showing lower output compared to the raw materials it used. As per the law, the company is obliged to pay Tk1.30 crore in interest in this case.
According to the report, Kai Bangladesh Aluminum evaded Tk85.54 lakh in VAT during the investigation period by showing the output finished profiles 2.40 lakh kilograms less than the actual amount. The company has to pay about Tk60 lakh in interest against this figure.
Besides, the company reportedly evaded over Tk74 lakh through excess use of chemicals, against which Tk25 lakh in interest is payable.
In addition, the amount of tax waiver that the company obtained unlawfully during the period under investigation amounts to about Tk1.65 crore, according to the probe report.
The report claims that during the inspection the company was given more than enough time and opportunities to defend itself and that the investigation report has been finalised taking into account statements from the company.
The investigation report has been sent to the Dhaka North VAT Commissionerate for taking legal action to recover the evaded VAT.
