Government's revenue authority served Sunday five demand notices on telecom-operator Robi Axiata Limited for realising Tk 9.24 billion in unpaid VAT.
Officials said the Value Added Tax (VAT) authority issued the time-bound notices as the Large Taxpayers Unit (LTU) under the VAT wing of the revenue board detected the VAT dodging from 2013 to 2016 calendar years.
The detection took place through IT (information technology) audit of the customised accounts system of the mobile multinational.
The unit has sent the primary demand notices to the Robi asking it to respond within next fifteen days, said assistant commissioner of the LTU Md Bodruzzaman Munshi.
The company can sit on hearing with the VAT authority if it desires to, he added.
"The LTU for the first time conducted the intensive audit for scrutinising Robi's VAT-payment status," he added.
LTU commissioner Md Matiur Rahman sent the demand notices to the mobile-phone company Sunday following a search report from a committee.
The unit detected the amount from underpayment and withholding VAT as per its database of the company's SAP software, merger fees and spectrum charge, interconnection charge and unauthorised VAT rebate.
Earlier, the unit had formed a five-member committee to audit SAP software of the company.
The committee, in its report, alleged VAT evasion worth Tk 5.53 billion on account of less-paid VAT on different services, Tk 1.58 million as less-paid withholding VAT, Tk 910 million merger fees and spectrum charges, Tk 52 million as interconnection charge and Tk 1.16 billion as alleged illegal VAT rebate taken in violation of the rules.
It recommended continuing scrutiny of Robi's accounts document as they have found large gaps between furnished data in the VAT returns and computerised database accounts.
The committee placed seven-point recommendation in its report, including cancellation of the alleged ill-gotten VAT rebate, realising the due amount against less-paid VAT, regular monitoring of the company's VAT returns.
The company has shown overseas incoming calls through international gateway (IGW) as export and claimed it as zero-rated export. The company also has shown sales of mobile handsets as tax-exempted sales.
The committee has crosschecked the company's VAT information with its income tax customs-related data including submission of income-tax returns and import of equipment and other products.
On customs information, the committee found the company having obtained rebate, through violating the VAT law, on import of battery, cable, printed board, router and switch.
They also found that the company did not keep purchase information of the items in the VAT-16 invoice.
The committee members also physically inspected the company premises and its warehouses during the hunt for unpaid revenues.
In its report the panel said the telecom company merged with Airtel but had yet to pay Tk 910 million in VAT to the public exchequer.
As per the findings, the firm owes Tk 52 million in VAT as interconnection charge between Robi and Bangladesh Telecommunications Company Limited (BTCL).
The investigators recommended withdrawing or disallowing the obtained VAT rebate worth Tk 1.16 billion by the company.
Mr Munshi, one of the members of the committee, said the VAT officials made the demand on the basis of information about the company database which is signed by its General Manager (tax and fiscal compliance).
The tax sleuths found out Tk 35.33 billion as payable VAT and Tk 5.53 billion as payable withholding VAT. However, the telecom operator paid Tk 29.79 billion and 3.95 billion worth of VAT respectively in the period between January 2013 and December 2016.
Ekram Kabir, vice-president for corporate communications of Robi said a show-cause notice is a regular process and Robi will provide its legal rationale accordingly.
"Robi claimed all rebate in accordance with the law and it is unfortunate that telecom industry is treated differently when it comes to VAT," Mr Kabir said.
VAT on merger fee or VAT on any regulatory fees are already a sub-judice matter, he added.
If BTRC register for VAT is checked, all issues related to regulatory fees will be resolved, the company official said in defence of their tax status.
"It is unfortunate that NBR is not taking action to uphold the rule of law. Instead, NBR is only pursuing operators," he added.
doulot_akter@yahoo.com