FORMER KING CONDOLES JAPAN DEATH DESTRUCTION

POLICEMEN MISSING AFER ATTACK ON TAPLEJUNG OUTPOST

Kathmandu, 18 March: A police post was attacked, two pistols and one communication set was seized by locals of Dhangesanghu VDC in Taplejung Thursday.
Three of seven policemen manning the post have gone missing.
A massive hunt has been launched for the assailants.
A youth group attacked the outpost following a dispute over a footfall tournament in the village seven days earlier,
One person was arrested after the dispute.
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MADESHBADI LEADERS MEET INDIANFOREIGN MINISTER

Kathmandu, 18 March: Three Madeshbadi leaders held political discussions Thursday with Indian Foreign Minister SM Krishna in the Indian capital.
“We made our position clear that the constituent assembly cannot be extended again if it fails to deliver a new constitution. If the constitution is not drafted, Madesh and Madeshi people will be deprived on their rights,
“We will also not be able to establish a Madesh state. So , the only alternative will be to go for a people’s fresh mandate to form a new constituent assembly, in the event the constitution is not delivered within the deadline,” NSP Chairman Rajendra Mahoto told The Kathmandu Post after the meetng.
MJF Chairman Bijaya Kumar Gachedhar and TMLP Chairman Mahaanta Thakur were present at the joint meeting.
The three leaders are in India on Indian government invitation to discuss the current political deadlock and fluid situation.
The three leaders are expected to hold discussions with Prime Minister Manmohan Singh before returning Sunday.
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FORMER KING GYANENDRA CONDOLES JAPAN DEATH AND DESTRUCTION; NEPALI EMBASSY FUNCTIONING FROM OSAKA

Kathmandu, 18 March: Former King Gyanendra Thursday condoled the death and devastation left behind by an earthquake and a tsunami after returning from India where he had gone to attend the wedding of a relative in the central state of Madhya Pradesh.
Shah said the visit was apolitical.
Japan is also attempting to minimize health hazards to people by radiation after explosions of nuclear reactors at Fukushima
Former Queen Komal also returned home via New Delhi.
The former king said his India visit was entirely personal.
Shah was greeted at the airport by supporters with pro-monarchy slogans.
The triple disasters have been described as Japan’s worst after World War II.
Nepalese from Sendai in the northeast and Fukushima have been evacuated to Tokyo.
Many foreigners have started leaving the rich island nation.
Meanwhile, all Nepal embassy officials have moved out of Tokyo 250km away to Osaka Thursday from where the mission will work temporarily.
The move was made Thursday for safety of embassy officials
following threats of rising radiation levels over the Japanese capital following explosions of four nuclear reactors at Fukushima..
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NC CENTRAL COMMITTEE MEETS FRIDAY

Kathmandu, 18 March: Nepali Congress (NC) central committee
Meets later Friday to discuss appointment of office bearers in the main opposition party.
The central committee hasn’t endorsed the appointments by President SUshil Koirala nearly three months of Ram Chandra Paudel and Krishna Prasad Shitaula as vice-president and general secretary.
The appointments have to be endorsed by the committee and a powerful section led by Sher Bahadur Deuba is opposing the appointments
demanding seats in the committee for its supporters.
Two groups are represented almost equally in the committee.
Koirala is attempting to strengthen his hold on it by discretionary powers of appointments.
The committee will also discuss the delayed peace process and
constitution drafting, according to Chief Secretary Basanta Kumar
Gautam.
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SHER BAHADUR DEUBA GREECE BOUND

Kathmandu, 18 March: Three-time prime minister and senior NC
leader Sher Bahadur Deuba flew for Athens Thursday to attend a meeting of Socialist International in the Greek capital from Saturday.
Deuba is the body’s vice-chairman.
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WB SUPPORT SOUGHT TO FIGHT VAT ANOMOLIES

Kathmandu, 18 March: Following the revelation of ´systemic attack´ on VAT, the government has knocked on the doors of the World Bank (WB) seeking support for identifying loopholes and ways to improve the VAT regime - the backbone of the country´s tax administration, Milan Mani Sharma reports in Republica.

The Ministry of Finance has requested the multilateral development partner to identify all possible anomalies indulged in by tax evaders and suggest policy reforms to fight the menace.

World Bank has responded to the call promptly with positive note. “We expect the study to begin soon," said Finance Secretary Rameshore Prasad Khanal.

The government approached the WB for support after investigations by IRD found nationwide prevalence of VAT receipt forgery racket. Entrepreneurs were found either buying genuine VAT receipts from smaller firms or buying printed receipts of some other registered traders to create fake transactions in order to evade tax.

Worse was; on the basis of fake VAT receipts and customs documents, some of them had even claimed VAT refund, siphoning funds from the national treasury without contributing a penny in it.

So far, IRD has already tracked around 500 firms involved in the racket, whose tax evasion is estimated to stand well around Rs 10 billion (well over US$ 138 million). In them, the department estimates the country could have suffered revenue losses of over Rs 4 billion.

"We found a few major anomalies. There might be others as well, which we might not know about. By identifying all possible wrong practices we plan to develop prompt corrective measures for long term improvement of the system," said Khanal.

Besides, MoF believes identification of anomalies and offering of suggestions by an independent body will also help the ministry get a fairer input compared to IRD´s own recommendations.

VAT evadors to face forgery charges

The government on Thursday also made it clear that the fake VAT receipt racketeers that claimed VAT refund on the basis of forged receipts and customs documents will face forgery charges apart from tax evasion charges and fines.

"Such actions (of fake VAT receipt users) are not just cases of tax evasion, but serious financial crime," said Khanal.

"They will not be able to walk free by just by paying taxes and fines. They will be tried for ´forgery´ as well," he said. If convicted by court, those involved in such cases will land in jail.

The Inland Revenue Department (IRD) that scooped down on 32 firms has dug out seven such cases in which traders on the basis of fake receipts and customs documents claimed that they exported noodles, vegetable ghee and other consumables to China and sought VAT refund, even while not paying even a single penny in VAT.

Of them, IRD has already completed investigations into four firms that claimed exports through Tatopani. IRD said the firms are guilty of tax evasion and has slapped them tax and fines worth a total of Rs 440 million.

It is close to completing investigation into three similar cases wherein firms claimed VAT refund claiming exports to China via Rasuwagadhi. Investigation so far shows they too are guilty of forgery and tax evasion worth Rs 460 million.

"Because they forged government documents, IRD will hand over their cases to the Department of Revenue Investigation (DRI) for legal action," said Khanal.

He even admitted that the wrongdoers were encouraged into the crime with support from government officials. "Some customs officials involved in such activities are already in detention. Others are being tracked as well. They too will face action," said Khanal.

As for the other 25 cases in which businessmen used fake receipts to shield their transactions for VAT evasion and inflate expenses for squeezing income tax liability, the government will take actions against them as per the existing tax laws.
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