Danish Foods sued for ‘evasion’ of Tk 3.46 crore VAT
Danish Foods Ltd, an organization of the Partex group, was prosecuted for allegedly evading value added tax (VAT) of Tk 3.46 crore.
The VAT Audit, Intelligence and Investigations Directorate (VAIID) filed the case after finding evidence of VAT evasion by examining documents related to Danish Foods’ treasury between July 2017 and June 2018, VAIID said in a statement today.
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Upon investigation, they found out that the food business had paid VAT of Tk 2.09 crore, but the actual amount of VAT payable by the business was Tk 5.29 crore.
According to the report, the company paid VAT of 12.06 lakh Tk at source on various service sectors, but the amount of VAT payable was 31.79 lakh Tk. Thus, the company escaped the VAT of 22.06 lakh Tk with interest.
In addition, the company escaped the VAT of 64.21 lakh Tk on additional discounts on the increase in the price of advertising, the purchase of tea paper for tea, the prices of tins of tea, butter , boxes and others.
Apart from this, for failure to report the revised price due to a 7.5 percent increase in the price of materials, Danish Foods also escaped VAT of around Tk 2.59 crore.
Thus, the company has a total unpaid VAT amount of Tk 3.45 crore with interest.
In the meantime, company officials accepted the unpaid VAT claim and voluntarily paid TK 2.45 crore, VAIID said in the statement.
Speaking to the Daily Star, a senior Danish Foods official, seeking anonymity, said they would pay the rest of the VAT amount next month as scheduled.