The VAT Audit, Intelligence & Investigation Directorate under the National Board of Revenue (NBR) filed three separate cases against three companies of the Swan Group on Tuesday, on allegations of VAT (value-added tax) evasion of Tk36.69 crore.
The three companies are Swan Industries Ltd (foam), Swan Chemicals Ltd, and Swan Industries Ltd (mattress). These companies mainly manufacture and supply foam, mattresses, chemicals and other related products.
An inspection team headed by Mohammad Sajedul Haque, Assistant Director VAT Intelligence, prepared three reports. To that end they scrutinised the company's activities between January 2016 and November 2021, cross-checking the data they obtained from annual audit reports, VAT returns, and copies of treasury invoices and other documents submitted by the company at different times.
According to the NBR's VAT Intelligence Directorate reports, the three companies of the Swan Group concealed sales of Tk136.05 crore to avoid paying Tk36.69 crore in VAT.
According to the reports, during the period under investigation, the total amount of unpaid VAT of the three companies amounts to Tk20,40,69,493. According to the VAT Act, the company has to pay Tk16,28,50,205 in interest – counted based on 2% monthly interest – against the dodged VAT.
For taking legal action to recover the evaded VAT, two of the three reports will be sent to the Dhaka North VAT Commissionerate, and the other to the Dhaka South VAT Commissionerate.
Earlier, on 23 November 2021, the probe body – acting on a tipoff that the Swan Group had been evading a huge amount of VAT for a long time, concealing actual monthly sales from their reports submitted to the NBR – raided the Swan Group's Gulshan head office. They seized hidden commercial sales documents of the organisation from computers at the head office.
The seized sales information was found to be inconsistent with VAT documents submitted by the company to the NBR.