Nine ins cos served notices for tax evasion

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Nine insurance companies have allegedly evaded taxes worth around Tk 110.16 crore as Value-added Tax (VAT) on Agent Commission and Reinsurance Commission in the last four years.

The insurance companies are Green Delta Insurance, Reliance Insurance Limited, Pragati Insurance Limited, Pioneer Insurance, Phoenix Insurance Company Limited, Eastland Insurance Company Limited, Pubali Insurance, Rupali Insurance Company Limited and state-owned Sadharan Bima Corporation.

The Large Taxpayers Unit for Value-added Tax (LTU-VAT) under the National Board of Revenue (NBR) issued separate demand notices to the insurance companies on September 24, asking them to pay the dues within 15 days of issuance of the notices.

The LTU-VAT officials claimed that the insurance companies evaded Tk 43.43 crore in VAT at source on agent commission between 2015 to 2016, and Tk 66.73 crore in VAT on reinsurance commission from 2013 to 2016 calendar years.

The companies will also have to pay 2 per cent monthly interest on the actual dues for non-payment in time, the officials added.