Sairu resort in Bandarban sued for VAT evasion

The VAT Intelligence Department has filed a case against Sairu, a tourist resort in Bandarban, for evading VAT worth Tk 2.12 crore, said a statement of the department.

The case was filed under the VAT Act. Case No. 359/2020.

A team of VAT detectives raided the Sairu resort on November 30, 2020 on the basis of secret information.

During the operation, detectives seized information and other documents from the computer of the resort.

The amount of VAT evasion was determined after a lengthy investigation into the operation. This case will be judged by the Chittagong VAT Commissioner in the judicial process.

If the allegation is proved, the fine can be doubled.

According to the investigation, the resort authorities were submitting their returns to the Bandarban VAT office keeping their actual sales account in hide. Their actual sales accounts were recovered during the VAT detective operation.

According to the investigation, Sairu evaded VAT worth Tk 1.70 crore in 24 months from November 2018 to October 2020.

As per VAT law, interest of Tk 42 lakh at 2% rate will be applicable for non-payment of VAT on time. In those 24 months, the total evasion stood at Tk 2.12 crore.

The investigation further found that Sairu had collected VAT through invoices from guests.

But a large part of this money has been embezzled without depositing those in the government treasury.

However, at the time of Corona, the resort was closed for 4 months from April 2020 to July 2020. The investigation did not take into account the VAT for those 4 months.

The company was filing returns with an average of one lakh taka VAT per month. According to the investigation, Sairu pays an average of Tk 10 lakh VAT per month. Accordingly, they pay one tenth of the VAT.

The operation was led by Tanvir Ahmed, deputy director of the agency.

The investigating officer in the case requested the Chittagong VAT Commissioner to keep a close watch on the activities of the resort.