The Green Lounge sued for evading VAT worth Tk 17.5m

The VAT intelligence team has detected alleged VAT evasion worth Tk 17.5 million by a posh restaurant in the city.

It has found evidence that The Green Lounge, located on the Kazi Nazrul Islam Avenue, evaded VAT through concealment of actual sales information, said a statement of the VAT Audit, Intelligence and Investigation Directorate on Wednesday.

The VAT intelligence team seized relevant bills and documents during a raid on the restaurant.

The team found that the restaurant authority has shown its total sales to be Tk 19 million during a 23-month period from May 2018 to March 2020, which is 87 percent lower than the actual sales figure.

The owner of the restaurant only declared 13 percent of its sales, thereby evading the payable VAT on 87 percent of the sales, the statement said.

As per the estimate of the VAT intelligence, the restaurant has evaded VAT worth Tk 17.5 million.

It has deducted the VAT against the customer bills but did not deposit to the public exchequer, the statement said.

The VAT intelligence filed a case against The Green Lounge on Wednesday on charges of VAT evasion and concealment of actual sales information.

The VAT intelligence team's suspicions were aroused when it found that the restaurant has paid Tk 2.5 million in VAT on the sales in those 23 months.

As per its VAT return, the monthly sales of the restaurant were estimated to be Tk 0.8 million and VAT Tk 0.1 million.

According to the documents seized from the restaurant, the total sales in those 23 months were found to be Tk 150 million.

The restaurant, known for its luxury, hosts social gatherings apart from providing regular food service.