The Larger Bench of the High Court overturned the High Court’s decision regarding the tax evasion case involving the former Deputy Governor of Royal Monetary Authority, Eden Dema. The Larger Bench ordered her to pay tax dues amounting to more than Nu 16,000 to the Department of Revenue and Customs. The judgment was passed on Tuesday. Last year, the High Court had asked her to pay close to Nu 200,000.
According to the judgment, from 2011 to 2013 she didn’t pay tax for the presenter honorarium fee and overtime allowance she received while launching World Bank books as part of an annual financial literacy programme.
The Larger Bench had asked the Department of Revenue and Customs to reassess the tax leakage. As per the department’s report, she was liable to pay Nu 16,000 along with more than Nu 70,000 as a penalty.
The judgment states that she will not have to pay the penalty because the employer, RMA, didn’t comply with the financial rules of tax deduction at the source. As per the judgment, the tax due was an oversight from her side.
The judgment further states that it was a selected prosecution and violation of the constitution by the Office of the Attorney General. She appealed to the larger bench last year.
The Royal Monetary Authority suspended Eden Dema in December 2015. The case surfaced in 2014 after the Anti-Corruption Commission knew about the case from an anonymous source. The case reached the district court in 2017.
According to the OAG, the district court acquitted her of tampering and manipulation of email correspondence to claim 100 per cent Daily Subsistence Allowance (DSA) while attending a conference in Japan.
Eden Dema allegedly tampered and manipulated an invitation letter and claimed a total of USD 900 as full DSA although the organizer bore full expenses including travel, food and accommodation.
She was entitled to only 30 per cent DSA in line with the RMA rules and regulations.
This particular issue was one of the main findings of the 2013 Royal Audit Authority report, which was shared with the ACC.
The OAG had also charged her for failing to declare a conflict of interest when recruiting a project manager and an assistant project manager in 2013 during which her niece and nephew were recruited. But the district court acquitted her of this charge as well.
Meanwhile, there are about 30 cases with the Larger Bench. Officials say, the cases will all be addressed within this month. The Larger Bench of the High Court was dissolved earlier in May this year as per the internal order issued by the Chief Justice of Bhutan. According to the Supreme Court, there was a delay in justice and obstructions for the litigants while having the Larger Bench. Hence, if the Litigants are dissatisfied with the judgment passed by the High Court, they will have to directly appeal to the Supreme Court.
Tshering Zam
Edited by Tandin Phuntsho
