‘Nepal Property of tax evaders will be confiscated and punish by New TAX law’

A senior government official has said the property of those who fail to pay tax will be confiscated, Kantipur daily reported.

We are collecting information on tax evaders and preparing to take action against them said Krishna Hari Baskota, acting revenue secretary at the finance ministry.

The government had urged businesses and individuals, who had not been paying tax despite falling within the tax bracket, to declare their income and pay a 10% tax under Voluntary Declaration of Income Sources (VDIS) through the budget speech in September, last year.

About 2000 people have declared their income till 11th February. The government has raised Rs. 1.4 billion in revenue under this scheme. The Inland Revenue Department (IRD) has said it has a list of 8000 businesses and individuals who have not paid tax despite falling within the tax bracket. The government extended the deadline for the declaration of income till mid March to allow more people to declare their income.

Baskota said, there is still time to declare income and pay the tax; the government will initiate action against those who fail to do so by March 13 ,2009. The tax evaders will be given a chance for clarification and their property will be confiscated if found guilty.

The government has formed mobile teams including IRD officials and the police to investigate on tax evaders with an authority to conduct raids in businesses and residences of suspicious people. It is also preparing to announce a reward of Rs 25000 to anyone who gives information on tax evaders.

Entrepreneurs have been demanding for tax exemption on invested amounts.The government has maintained a firm stance on its policy. We can’t let go of any property whose tax has not been paid, said Baskota.

The private sector has warned of protests if their demand is not fulfilled. We will be forced to take strong measures if the government becomes rigid, said Pradip Man Baidhya, president of the revenue committee of the Federation of Nepalese Chambers of Commerce and Industries. nepalnews.com Mar 06 09

'Govt is all prepared to penalise tax evaders'

A senior official at the Ministry of Finance (MoF) has said the government will initiate action against those who fail to comply with the Voluntary Declaration of Income Sources (VDIS).

Speaking at an interaction programme held in the capital on Friday, Krishna Hari Baskota, revenue secretary at the ministry said," We are all set to strictly penalize those who fail to declare their income and pay a 10 percent tax under the VDIS till March 11, 2009."

The government extended the deadline for the declaration of income till mid March to allow more people to declare their income as per the request of the private sector.

"The government is constantly reminding the tax evaders about their financial obligation to the state and their property will be confiscated if found guilty," he further stated.

He also divulged that since the extension of VDIS deadline by one month (March 11) some 129 people have disclosed their property worth Rs 410.6 million and paid 40.10 million to the government as tax.

Meanwhile, the Inland Revenue Department (IRD) has lately come up with the concept of a flying squad to trap tax evaders.

The IRD decided to form such squads at the district level too where the team will be headed by the chief of the Inland Revenue Office.

The squad will take action against those avoiding paying income tax, excise duty, valued added tax (VAT), health service tax and education service tax. nepalnews.com nd March 06 09