Nepal Government Investigates 2,000 Firms for Alleged Use of Fake Invoices to Evade Rs 10 Billion in Revenue

The government of Nepal has launched a probe into approximately 2,000 commercial firms engaged in various businesses for suspected use of fake invoices, aiming to evade an estimated Rs 10 billion in revenue. The Inland Revenue Department (IRD) is conducting an investigation into the fake invoices of Rs 9.93 billion related to 1,986 taxpayers. It is reported that about Rs 1 billion in taxes has been identified through the investigation of fake bills until mid-February. The investigation targets firms involved in public construction businesses, the supply of goods, and goods provided in government offices.

The Inland Revenue Department (IRD) in Nepal aims to conclude its investigation into tax evasion using fake invoices by mid-April. The probe, initiated due to the use of fake Value Added Tax (VAT) bills, has identified a substantial problem of tax evasion leading to revenue losses for the government. The investigation targets both old and new files based on suspicious transactions using fake VAT bills. The government is actively monitoring areas where revenue collection falls short of targets and is committed to tightening controls on revenue leakage, particularly through measures against the creation and sale of fake VAT bills without the actual purchase of goods.