Singer gets legal notice on its VAT evasion, business irregularities
In the context of evasion of value of added taxes (VAT) and various business irregularities of the listed company `Singer Bangladesh Limited,’ a capital market’s general investor named Saiful Islam has sent legal notice to Singer Bangladesh Limited, Ministry of Commerce and Bangladesh Securities and Exchange Commission seeking proper investigation and explanation against these business irregularities of the company.
In addition, the investor also lodged complaints against Singer's business irregularities with the Bangladesh Securities and Exchange Commission, the National Board of Revenue, the Customs Intelligence and Investigation Department, and the Audit, Intelligence and Investigation Department.
A recent investigation by the Large Taxpayer Unit (LTU) under the National Board of Revenue found and revealed various business irregularities and revenue evasion by Singer.
In 2019, Singer Bangladesh has achieved a record amount of profit. But deprived the government of the revenue it received.
According to the source, Singer submitted VAT return in the name of the merged entity with an evil aim of enjoying rebate. Although the company merged, the VAT Commissionerate was not informed. The company has 424 sales outlets across the country. Of these, 314 are outside the central article. None of the 19 warehouses have VAT registration. As a result, VAT on unregistered sales outlets and warehouses was embezzled. The company recorded an annual turnover of Tk 1,500 crore but they paid only Tk 33 crore in VAT. In the just four months, the company's VAT evasion and illegal rebate has been taken about 94 crore!
Recently, news of these business irregularities of Singer were published in various newspapers of the country. The general investors concerned in the capital market have become embarrassed and angry at these news. In this context, an aggrieved investor named Saiful Islam has sent a legal notice to the company against the business irregularities of Singer.
In this context, Saiful Islam said, ‘Even though the foreign company is making good profit by doing business in Bangladesh, it is depriving the government of its fair revenue. At the same time, the listed company is also putting the capital of small investors at risk. Therefore, the company has lodged complaints with various government agencies for taking legal action against Singer through a proper investigation into its business irregularities. Legal notices have also been sent to the Ministry of Commerce and the Bangladesh Securities and Exchange Commission, including Singer, seeking a fair explanation for the irregularities.’
Singer Bangladesh Limited is a listed company in the engineering sector. The paid up capital of the company is Tk996.03 million. Entrepreneurs and managers hold 56 per cent and general investors 43 per cent. Both the chairman and managing director of the company are foreign nationals.