VAT Intelligence sues 4 companies of Ispahani Group

The VAT Audit, Intelligence and Investigation Directorate has sued four companies of the Ispahani Group in Chattogram for concealing actual sales information and for evasion of value added tax (VAT).

The fourentities are: The Avenue Hotel and Suites; Pitstop Sweets and Bakery;Pitstop Showroom; andPitstop Superstore.

During their investigation, the directorate discovered that the companies had hidden sales information of about Tk18.27 crore. The entities allegedly evaded Tk89.79 lakh in VAT, and with interest, now owes the government an additional Tk60.07 lakh.

On September 7, a team of VAT Intelligence officials, led by Deputy Director Tanvir Ahmed and Assistant Director Md Mohiuddin, conducted raids on the entitiesbased on specific allegations of VAT evasion.

The investigation revealed that in the 2015-16 fiscal year and FY2016-17, The Avenue Hotel and Suitesdeclared Tk8,772,146 in sales. But a computerseized during the raid allegedly revealed sales data of Tk12,993,814, meaning the entity evaded Tk633,250 in VAT.

As this VAT was not paid on time, the company owesan additional Tk499,569 with 2% interest,according to VAT law.

Furthermore, between FY2013-14 and FY2019-20, Pitstop Sweets and Bakery evaded Tk638,004 by hiding sales worth Tk4,253,361. At 2% interest rate, they now owe the directorate and additional Tk721,126.

Meanwhile, Pitstop Showroom allegedly evaded Tk44,32,421 in VATbetween FY2013-14 and FY2016-17. Now it owes the directorateTk4,171,914 as interest.

Pitstop Superstore owes the directorate Tk614,079 for allegedly evading evaded Tk3,275,101 VAT.

Cases have already been filed against all four companies under the VAT Act.