Ad firms come under NBR lens amid VAT evasion allegation
Advertisement firms are now under strict surveillance by the Central Intelligence Cell (CIC) of National Board of Revenue (NBR) amid allegations of VAT evasion.
“We've got allegations against the advertising firms including some big ones. We're now collecting papers in support of the allegations, as we have ascertained VAT evasions by some advertisement firms,” a CIC official told the news agency.
Preferring unanimity, the official said it has been confirmed that some advertising firms were evading VAT for a long time.
“We never paid attention to this sector … now that we're looking for something in earnest, we have found cases of massive evasion,” the NBR official said.
Replying to a question, he said it is not only a matter of the amount involved, but also a matter of responsibility to the nation and the country.
He said any VAT evasion by the advertising firms would not be spared and the NBR would impose penalty as per the NBR rules and regulations.
The NBR recently streamlined the drive to catch VAT evaders, as the board's revenue collection has showed decreasing trend.
Regarding the fines for VAT evasion, a VAT official said that as per the rules the fine would be 25-75 percent of the amount of VAT, depending on the nature of the offense.
The VAT section of the NBR has been experiencing less collection, as most of the big VAT-payers have now come under the Large Taxpayers Unit (LTU).
“Recently, we have found that the VAT collection from the service sector has been declining alarmingly and that's why we have decided to strengthen the drive against VAT evasion,” the NBR official said.
The government has fixed a revenue target of around Tk 15,000 crore from VAT (value added tax) for the current fiscal.
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