A team of VAT detectives has found evidence of substantial tax evasion by Khan's Kitchen, a catering service in the capital, after conducting a drive in the restaurant.
The detectives have found that the company had concealed two months' sales data worth Tk1.42 crore.
According to a press release, the raid was carried out following a customer's complaint on Facebook.
Khan's Kitchen, which has already expanded its business using modern and hygienic methods, caters to large industries and various events.
Detectives seized commercial documents from the catering service during the raid.
An inspection of Khan's Kitchen also revealed company authorities' use of duplicate and invalid invoices instead of VAT invoices.
Two months sales data of the company – July and December 2019 – shows Tk93.03 lakh in sales in July 2019. However, according to returns submitted to the Gulshan VAT Circle, sales shown was Tk19.93 lakh, indicating that Tk73.10 lakhs in sales was hidden, which would have been subject to Tk9.14 lakhs in taxes.
Given that they failed to pay the tax on time, an interest of Tk2.93 lakh is applicable at 2% per month.
December 2019 data showed sales of Tk84.80 lakh, but returns indicated Tk15.89 lakhs in sales, proving that Tk68.91 lakh in sales had been concealed. This computes to an evasion of Tk8.68 lakh in VAT. An interest of Tk1.91 lakh is applicable at a rate of 2% per month.
During the two months, Khan's Kitchen evaded Tk17.82 lakh in VAT by concealing Tk1.42 crore in sales, on which a total of Tk22.66 lakh was evaded, including interest of Tk4.84 lakh at a rate of 2%.
VAT detectives have also found similar discrepancies in other months.
All the VAT-related documents seized from the catering service are currently being verified and the total amount of VAT evasion (since the company was founded) is now being calculated.
A case will be filed against the company for non-compliance with the VAT Act.
The name of the company is Khan's Kitchen Ltd, Khan's House, Baro Beraid, Dhaka-1212. Its VAT registration number is: 001720564-0101.
Tanvir Ahmed, deputy director, VAT Audit, Intelligence & Investigation Directorate, conducted the operation on 14 December.