.. will check all CD and saving accounts  

YK Poudel 

In an attempt to address tax evasion, the Department of Revenue and Customs (DRC) will check the Current Deposit (CD) and saving accounts of all major businesses.

Upon tax assessments, if businesses have not used CDs or current deposit accounts they would be fined up to Nu 5,000, Foreign Affairs and External Trade (MoFAET) Minister Dr Tandi Dorji said during the Meet the Press session on April 13.

To ensure and strengthen the taxpayers’ willingness to comply and thereby contribute to improvements in overall levels of compliance with the laws, DRC mandated all companies including Civil Society Organisations to have CD accounts last year.

MoFAET, Dr Tandi Dorji said that if the CD account holders are found without using the account for transactions and there are more transactions in the savings and their personal accounts that will be taken into consideration.

“The business entities have been told that if they do not use CD accounts they will be fined and the DRC will access both the CD and the savings accounts of all business houses during tax assessment. They will study the transactions and the volume exchanged during the year,” Lyonpo said.

As of February this year, there were about 56,000 registered CD accounts, with approximately 62,000 corporate organisations across the nation.

In spite of the majority of the business entities complying with opening CD accounts, it was observed that business entities are not making use of their CD accounts, according to the minister.