Business Owner Referred to Trial Over VAT Evasion Exceeding BD 240,000

The head of the Tax Evasion Crimes Unit at the Financial Crimes and Money Laundering Prosecution has confirmed that the unit received a report from the National Bureau for Revenue (NBR) against the owner of a commercial establishment for collecting Value Added Tax (VAT) from customers without remitting it to the authorities.

According to the statement, the accused collected more than BD 240,000 in VAT from clients but failed to transfer the amount to the NBR, despite submitting VAT tax returns. This constitutes a clear violation of the provisions of the VAT Law.

Following the report, the prosecution immediately launched an investigation. Authorities ordered the lifting of banking secrecy on the accused and the business accounts, heard testimonies from NBR specialists, and reviewed relevant documents.

The investigation revealed that the accused submitted false documents to the NBR, unlawfully deducted VAT input tax, failed to issue invoices for VAT-taxable transactions, and did not properly maintain tax records, invoices, or accounting books related to import and service supply operations.

Based on the evidence, the prosecution concluded that the accused deliberately evaded paying the due VAT amount. As a result, an order was issued to refer the case to trial.

The first hearing has been scheduled for February 8, 2026, before the High Criminal Court (First Circuit).