The VAT Intelligence Department has launched an investigation against Delta Life Insurance and uncovered VAT evasion of around Tk 35.17 crore. A case has been filed against the insurance company under the VAT Act today after finding evidence of VAT evasion.

A team led by Mr. Saima Parveen, Assistant Director of VAT Detective, investigated the insurance company from January 2013 to December 2017 due to specific allegations of VAT evasion. The VAT detective team summoned the institution authorities for submission of documents in the interest of investigation.

In view of this, the report is prepared by verifying the landscaping of the annual CA report, report, submission (VAT-19) submitted by the organization and copies of treasury invoices and other documents submitted by the organization at different times.

According to the report, the company has paid Rs 40,055,063 on health insurance. But the amount of VAT payable by the company was 10 crore 21 lakh 36 thousand 411 rupees. In this case, the company has hidden the actual sales information. In this, a fraud of 9 crore 80 lakh 72 thousand 339 taka was uncovered for unpaid VAT. According to the VAT Act, 11 crore 30 lakh 40 thousand 8 taka will be applicable on this evasion at the rate of 2 percent on a monthly basis.

According to the investigation, during the audit period, according to the report of CA firm, VAT at source has been paid 6 crore 34 lakh 6 thousand 703 rupees. But the amount of VAT payable by the company was 11 crore 3 lakh 13 thousand 249 rupees. In this case, a fraud of Tk 4 crore 69 lakh 5 thousand 446 was uncovered for the unpaid VAT of the company. According to the VAT Act, interest of Tk 5 crore 58 lakh 65 thousand 179 will be recoverable at the rate of 2 per cent on a monthly basis.

On the other hand, during the investigation period, the company has paid 1 crore 46 lakh 14 thousand 980 rupees against the rent of the place and installation. But the amount of VAT payable by the company was 3 crore 20 lakh 55 thousand 101 rupees. In this case, a fraud of 1 crore 74 lakh 40 thousand 120 rupees was uncovered for the unpaid VAT of the company. According to the VAT Act, 2 crore 4 lakh 46 thousand 71 taka interest will be applicable on this evasion at the rate of 2 percent on a monthly basis.

During the period of the said investigation, the total amount of unpaid VAT of the company was 18 crore 24 lakh 26 thousand 905 taka and the amount of 35 crore 18 lakh 90 thousand 733 taka including 17 crore 92 lakh 72 thousand 726 taka was recovered.

The investigation further found that the company had resorted to various forms of fraud and deception for the purpose of VAT evasion by the government, which is a punishable offense under the VAT Act. A case has been filed in this regard on Thursday. The report will be sent to the VAT Commissionerate Dhaka North for further legal action to recover the evaded VAT revealed in the investigation.