Popular Group units pay VAT after evasion probe

Two entities of Popular Group have made a payment of Tk 6.36 crore against allegations of value added tax (VAT) evasion brought by a state intelligence wing probing claims of tax evasion by healthcare providers.

The VAT Audit, Intelligence & Investigation Directorate (VAIID), a field office of the National Board of Revenue (NBR), said Popular Diagnostic Centre and Popular Medical College & Hospital in the capital's Dhanmondi did not pay the VAT at source on purchase of goods and services.

The NBR's field office detected the anomalies after auditing the annual reports and VAT related documents during the period from July 2015 to June 30, 2020.

It found that Popular Diagnostic Centre did not pay Tk 2.42 crore in VAT at source.

In case of Popular Medical College & Hospital, the NBR identified that Tk 1.84 crore was unpaid during the period from July 2015 to June 2020.

Some 2 per cent interest is applicable on the unpaid VAT, said the VAIID in a press release yesterday.

Moinul Khan, director general of the VAIID, said the firms did not deduct at VAT at source on purchase of goods and services.

"They paid the amount including interest instantly after detection and informed us," he said.

Md Sahab Uddin, manager for VAT and taxes of Popular Diagnostics Centre, said they mistakenly deducted VAT at the rate 10 per cent and 5 per cent instead of 15 per cent and 7.5 per cent.