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Indian Businessman asked to pay over Nu 14m for tax evasion

July 21, 2017
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Phuentsholing Drungkhag Court

Phuentsholing Drungkhag Court ordered the owner of JPLP, a departmental store in Phuentshogling, to pay over Nu 14 M as a penalty for evading tax from 2011-14.

The OAG has charged him for tax evasion amounting to over Nu 184 m. The judgment was passed yesterday.

In 2015,  the Anti-Corruption Commission(ACC) uncovered that the JPLP had evaded tax. The ACC forwarded the case to the Office of Attorney General (OAG) and the court proceedings began in September 2015.

JPLP submitted to the court that the company is liable to pay only about Nu 8.6 M for evading taxes and not Nu 184 M as calculated by the OAG.

However, OAG’s stand is that the taxable amount after fines and penalties was determined from ACC’s findings and JPLP’s declaration to the customs office in Phuentshogling. But during the court proceedings, it was found out that the OAG had made double entry and overstated the purchase amount of goods which amounted to Nu 184 M as the evaded tax.

So, the Phuentshogling court asked the owner of JPLP to pay over Nu 14 M after levying 30 per cent Business Income Tax, 200 per cent penalty and 24 per cent for late payment. The court also commanded the owner to pay over Nu 7 M in lieu of imprisonment.

If both the parties do not appeal to the higher courts, the defendant (owner of JPLP) has to pay the amount within the ten working days including the day when the judgment was passed.

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