KATHMANDU — The Commission for Investigation of Abuse of Authority (CIAA) has filed a Rs 10.96 billion corruption case at the Special Court against the suspended director general of the Inland Revenue Department(IRD) Chudamani Sharma, Tax Settlement Commission (TSC) Chairman LD Mahat and member Umesh Dhakal on Sunday.
The anti-graft body has claimed that the trio caused a loss of more than Rs 10 billion to the nation and asked for the fine and jail term of 10 years for them.
The CIAA had arrested Sharma on June 2 and was in the custody of the commission while Mahat and Dhakal are absconding since the anti-graft body asked them to be present before the CIAA.
The anti-graft body had decided to file the case at the Special Court on July 13, a day after the Supreme Court issued a show cause notice to the CIAA in relation to the arrest of Sharma.
The CIAA has studied 46 files related to tax exemption then calculated embezzled amount while the misappropriated amount could be higher, according to a CIAA source, who said as many as 1,063 files are under investigation.
The anti-graft body has been studying more than 1,000 files related to tax exemption.
The TSC was formed in February 2015 by then Finance Minister Ram Sharan Mahat. Since then it had run into controversy after a report of the Office of the Auditor General (OAG) in April called into question the Rs 21 billion tax exemption granted to various enterprises.
The CIAA investigation shows the TSC had given tax waiver even to the enterprises that were seeking to pay tax dues.Follow @gorkhapost