NBR Raid on Clothing Business in Shyamoli, VAT Evasion of Tk 8.2 Million Detected

The National Board of Revenue (NBR) has found evidence of value-added tax (VAT) evasion amounting to approximately Tk 82 lakh by a clothing retail business in the Shyamoli area under Sher-e-Bangla Nagar Police Station in the capital.

The business, named “Shopping Zone BD,” reportedly sells clothing through its own showroom as well as online platforms.

According to VAT intelligence sources, allegations of revenue evasion against the establishment had been received by the Commissioner of Customs, Excise and VAT Commissioner ate, Dhaka (West), for a considerable period of time. Based on confidential information, a special team was formed under the direct instructions of the Commissioner. As part of the operation, the team conducted a surprise raid on Tuesday, September 16, at the establishment’s office located at 12/1/4, Road No. 2, Shyamoli, Dhaka.

During the raid, officials examined the company’s accounts, sales records and other relevant documents and found clear indications of VAT evasion. Considering the need for further investigation, the officials seized the company’s computer CPU and other relevant important documents under the prescribed Mushak-12.3 form in accordance with the VAT law.

Subsequently, after reviewing the seized data and information and examining and cross-checking the sales records, officials initially identified sales transactions worth Tk 10,93,73,400 (Tk 10 crore 93 lakh 73 thousand 400).

The preliminary investigation revealed that the company had allegedly evaded Tk 82,03,005 (Tk 82 lakh 3 thousand 5) in VAT payable to the government against these substantial sales.

NBR sources said the seized documents and digital data are currently being examined and scrutinized in detail. Upon completion of the process, legal proceedings will be initiated to file a case against the establishment under the relevant VAT laws.

In addition to recovering the evaded revenue, provisions also exist for imposing penalties in accordance with the applicable rules, the sources added.

Recently, amid a rise in allegations of VAT evasion against businesses operating through both online and offline channels in Dhaka and various other parts of the country, the VAT intelligence wing of the NBR has intensified regular monitoring and enforcement operations.

Relevant officials said such operations will continue to ensure increased revenue collection and establish a level playing field for businesses.

—Source: National Board of Revenue (NBR)