The Comptroller and Auditor General (CAG) has advised the tax authorities to furnish necessary documents to the court to expedite recovery of Tk 446 million government revenue from Unilever BD Ltd.
According to a report from the CAG office, the government lost Tk 446 million in revenue since the company did not pay its due supplementary and value added taxes (VAT).
The auditor, after analysing the company's financial statements for 2005-06 submitted to Large Taxpayers' Unit of the National Board of Revenue (NBR), found that Unilever paid VAT twice. It was found that the company paid VAT first as a manufacturer and subsequently as a trader, thus availing 15 per cent rebate.
Unilever owns 60.75 percent of the multinational company, with 39.25 per cent stake lying with government.
The audit office found that the company first sold its products manufactured in Chittagong to its Gazipur central warehouse and paid VAT. It again paid VAT against an account different from the manufacturer's, when distributors bought the goods from the central godown.
Unilever BD's Chittagong unit manufactures soap and personal care products.
"The company is a registered firm, and therefore has a single TIN account and one annual audit report," the report said. "Under the existing system, maximum retail price is fixed at the place of production, and all taxes are supposed to be paid at that level.
"They (Unilever BD) did not pay tax at the place of production, which deprived the government of its due supplementary duties…"
The CAG report says revenue thus lost in the form of supplementary duties and VAT works out to be Tk 446 million.
The company filed a writ petition in 2009 when NBR served a notice to recover the lost amount, the report said.
The auditor recommended that the company authorities supply all necessary documents to the court to get a proper verdict and dispose of the case to expedite the money recovery process.
The company manufactures fast-moving consumer goods, and over 90 per cent of Bangladeshi households use one or more of Unilever products.
Unilever's operations in Bangladesh provide employment to over 10,000 people directly and through its dedicated suppliers, distributors and service providers.
According to a report from the CAG office, the government lost Tk 446 million in revenue since the company did not pay its due supplementary and value added taxes (VAT).
The auditor, after analysing the company's financial statements for 2005-06 submitted to Large Taxpayers' Unit of the National Board of Revenue (NBR), found that Unilever paid VAT twice. It was found that the company paid VAT first as a manufacturer and subsequently as a trader, thus availing 15 per cent rebate.
Unilever owns 60.75 percent of the multinational company, with 39.25 per cent stake lying with government.
The audit office found that the company first sold its products manufactured in Chittagong to its Gazipur central warehouse and paid VAT. It again paid VAT against an account different from the manufacturer's, when distributors bought the goods from the central godown.
Unilever BD's Chittagong unit manufactures soap and personal care products.
"The company is a registered firm, and therefore has a single TIN account and one annual audit report," the report said. "Under the existing system, maximum retail price is fixed at the place of production, and all taxes are supposed to be paid at that level.
"They (Unilever BD) did not pay tax at the place of production, which deprived the government of its due supplementary duties…"
The CAG report says revenue thus lost in the form of supplementary duties and VAT works out to be Tk 446 million.
The company filed a writ petition in 2009 when NBR served a notice to recover the lost amount, the report said.
The auditor recommended that the company authorities supply all necessary documents to the court to get a proper verdict and dispose of the case to expedite the money recovery process.
The company manufactures fast-moving consumer goods, and over 90 per cent of Bangladeshi households use one or more of Unilever products.
Unilever's operations in Bangladesh provide employment to over 10,000 people directly and through its dedicated suppliers, distributors and service providers.
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