Danish Foods faces VAT evasion case Tk3.46cr

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TBS Report

November 23, 2021, 8:05 PM

Last modification: November 23, 2021, 8:11 PM

The concept of value added tax (VAT) first appeared in Europe in the 1920s. Illustration from TBS

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The concept of value added tax (VAT) first appeared in Europe in the 1920s. Illustration from TBS

The National Board of Revenue sued Danish Foods Limited, a Partex group company, for evading Tk 3.46 crore in value added tax (VAT).

The case was closed Tuesday following an investigation by the Directorate of Audit, Intelligence and Investigations of the VAT, according to a press release.

Danish Foods authorities have admitted to the crime and have already voluntarily paid close to Tk 2.46 crore in unpaid VAT.

A team from the VAT Intelligence Directorate, led by Deputy Director Alamgir Hossain, discovered the irregularities after reviewing Danish Foods accounts from July 2017 to July 2018.

In the context of VAT at source, the company paid 12.06 lakh Tk against various services during the investigation period, while more than 31.91 lakh Tk of VAT at source was due, reported investigators in their report. Including a 2% interest penalty on VAT due at source, the company still owes 21.73 lakh Tk.

Danish Foods also avoided another 64.21 lakh Tk in additional discounts on increasing the prices of advertisements and products.

In addition, the company still owed Tk 3 70 81 138 of VAT following a deduction of the rebate claimed on the increase in material prices due to its failure to report revised prices after a 7.5% increase.

However, said the NBR, Danish Food had to pay just over Tk 2.6 crore in VAT as it adjusted to Tk 1.11 crore.

In total, the investigation revealed a VAT fraud of Tk 3 45 90 408 by Danish Foods in one year.

The investigation report and the documents in the file were sent to the relevant VAT Commission by the VAT intelligence department.

The detectives also asked the commissioner to monitor the company.


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