New Zealand Dairy ‘dodged Tk 130m in VAT’

Golam Mowla
Published : 07:45, Oct 11, 2018 | Updated : 07:45, Oct 11, 2018

New Zealand Dairy Products Bangladesh Ltd powdered milk under the brand names Diploma and Red Cow among several other dairy products.New Zealand Dairy Products Bangladesh Ltd, which markets powdered milk under the brand names Diploma and Red Cow among several other dairy products, have allegedly dodged nearly Tk 130 million in value added tax (VAT).
According to recent report by the National Board of Revenue (NBR), between January 2015 and December 2016, the company has evaded Tk 129.6 million in VAT>
On Tuesday, the company has been served with a show cause notice by NBR Commissioner (Large Taxpayers Unit) Muhammad Mubinul Kabir.
New Zealand Dairy’s also markets powdered milk with the brand names of ‘Shape Up’, ‘Farmland’ and ‘Farmland Gold’.
Its non-dairy products include, instant noodles under the brand name ‘Doodles’ and chips and crackers, ‘Poppers’ and ‘Detos’.
New Zealand Dairy Managing Director Shamsul Alam Mallick did not answer calls or responded to text messages on his mobile phone despite several attempts.
However, its Assistant Financial Controller Rafiqul Islam Mallick denied the allegations brought by NBR.
On Oct 2, NBR officials inspected the New Zealand Dairy’s headquarters in Dhaka to obtain sales documents.
According to people familiar with the matter, the documents showed that the company’s sales in 2015 stood at Tk 5.23 billion, but documents filed with the NBR stated Tk 4.44 billion.
The documents obtained by NBR states that New Zealand Dairy’s sales in 2016 was Tk 4.93 billion, but the documents it filed with the tax authorities stated Tk 4.86 billion.
The NBR says the discrepancy in the actual and stated sales figures meant that the company has evaded Tk 129.6 million in VATs.
An official of NBR’s large taxpayer unit, preferring anonymity, told Bangla Tribune that the move to crosscheck New Zealand Dairy’s documents was based on specific complaints.
“We are going through the documents,” the official said hinting at the amount of tax dodged may be higher.
The NBR said that in 2017, it sued New Zealand Dairy for availing a rebate facility of Tk 55 million by concealing information as well as for dodging Tk 5 million in VAT over supplying powdered milk to a government agency.