July 23: In a bid to discourage businesses enterprises from submitting false financial details to the tax authorities, the government has decided to collaborate with banks and financial institutions to exchange information in this regard.
The business enterprises have been submitting financial documents that show profit to the BFIs in order to get loans, but they show that they are incurring loss while submitting documents to the tax office. The businessmen allegedly submit false financial information to the authorities to evade tax.
During the budget speech for the Fiscal Year 2018/2019, the government had announced to establish an online system for the exchange of information between tax authorities and BFIs.
On Sunday, the Inland Revenue Department (IRD) discussed with the officials of the central bank to implement the system. During the discussion, Bishnu Nepal, director general at IRD, said that the system which has been developed for financial transparency will be implemented at the earliest.
An official at the Ministry of Finance told New Business Age that the government was implementing the system to keep a close watch on the businesses submitting different financial documents to banks and tax authority.