Star Kabab faces VAT dodging charges | The Daily Star
12:00 AM, August 05, 2016 / LAST MODIFIED: 12:00 AM, August 05, 2016

Star Kabab faces VAT dodging charges

The VAT Intelligence Directorate has detected Tk 4.63 crore in value-added tax evaded by Star Kabab and Restaurant, a popular eatery in Dhaka.

The VAT Intelligence Directorate, an office under the National Board of Revenue, detected the dodging based on records it seized from the restaurant's 11 outlets during raids in April.

The tax office however did not mention the timeframe in which Star Kabab dodged the tax.

The office had filed nine cases against nine scams based on the documents it seized at that time.

“This is the result of our operation in April,” said Belal Hossain Chowdhury, additional director general of VAT Intelligence.

They have already requested VAT commissionerates to start the process of collecting the revenue from Star Kabab as per law, he said.

Revenue officials raided Star Kabab's Banani, Dhanmondi, Wari, Tikatuli, Elephant Road and Thatari Bazar areas. The raids were conducted following complaints from people over the phone and online over a long period of time, the VAT Intelligence Directorate said in a statement yesterday.

This was the biggest raid by VAT Intelligence in terms of the involvement of its officials.

VAT Intelligence officials said they found that the restaurant was not issuing receipts in many instances, despite having electronic cash registers at the outlets. The restaurant was issuing bills for customers on blank paper or their official pad, according to the statement.

“In many instances, they received bills without a receipt. It is an offence under the VAT law,” said the statement.

The NBR's VAT office said the amount of VAT paid by the restaurant increased in the months after the raid.

It said it does not intend to dishonour or affect any business entity. The main objective is to encourage people to pay taxes and ensure compliance, according to the VAT Intelligence Directorate.

“Our main goal is to create awareness among all that none is above the law. We will not go after any business if it pays tax properly,” Chowdhury said.

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