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OAG forwards Ugyen Auto’s alleged tax evasion case to Thimphu District court

February 15, 2022
in Crime/Legal
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The office of the Attorney General has registered a case against Ugyen Auto with the Thimphu District Court, today. Ugyen Auto is accused of evading green tax worth Nu 15 M while importing 75 dumper trucks between 2018 and 2020.

According to the Office of the Attorney General, Ugyen Auto did not declare the 75 dumper trucks at the point of entry as mandated by the Customs Act. The office said the defendant thereby benefited by evading green tax.

Import of dumper trucks like any other vehicle is liable for 10 per cent Green Tax as per the Customs Act. The Act also states that a person will have to pay a fine of 50 per cent of the value of the goods evaded in addition to the amount of the custom’s duty.

The company is therefore liable for fines and penalties amounting to Nu 75 M.

As per the OAG, the company paid the evaded amount of Nu 15 M only when the Anti-Corruption Commission started the investigation.

While the defendant claimed that he was unaware and that he did not evade the tax intentionally, the OAG refutes this claim. The OAG said a staff who was responsible for declaring the vehicles to the RRCO informed the relevant officials via email about the non-declaration of the dumper trucks in 2019.

The office also requested the court to arrest the defendant.

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