The Mirage – a restaurant – sued for evading VAT worth Tk2.54cr

VAT intelligence on Monday filed a case against The Mirage, a restaurant and Shisha (lead) lounge in the capital’s Gulshan area, for evading VAT (value added tax) worth Tk2.54 crore.

Following an investigation, the VAT intelligence found that The Mirage had hid sales information worth Tk9.33 crore, leading to VAT evasion of Tk1.39 crore, reads a press release.

Earlier, on November 12, VAT Audit Intelligence and Investigation Directorate (VATAIID) of the National Board of Revenue (NBR) conducted a raid at the lounge on specific allegations of VAT evasion.

During the raid, the NBR team led by its deputy director Sheikh Tanvir Ahmed and assistant director Muhammad Mohi Uddin seized Shisha and other items, but the authorities of the lounge could not show VAT invoice against the purchase of the products.

The team then primarily discovered a huge mismatch between monthly VAT returns and actual sales.

After a through scrutiny of the commercial documents seized during the raid, it has been found that The Mirage had evaded Tk1.40 crore in VAT on sales between July 2013 and October 2020. As per the VAT Act, Tk98 lakh at a monthly interest rate of 2 percent is applicable.

It has also been discovered that the lounge was involved in VAT evasion (at source) of Tk8.40 lakh on the purchase of its services. Tk7.88 lakh at a monthly interest rate of 2 percent is applicable.

The Mirage was found evading Tk1.48 crore in VAT over sales and deduction at source. An additional Tk1.06 crore is levied as interest on the evaded VAT.

As a result, the company is found involved in evading Tk2.54 crore in government revenues.

After the thorough investigation, the VAT intelligence today filed the case against the lounge with the Dhaka North Commissionerate under the VAT Act.