CIB arrested two youths on the charge of manipulating the amount in the revenue tax system software resulting in an excess tax liability of Rs 682 lakh 65 thousand 590
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It has been revealed that two youths have misused the 'user name' and 'password' used by the Bhatbhateni supermarket affiliated to the Internal Revenue Department to increase the tax of 60 million to 130 million. Santosh Parajuli and Parin Pandey have been arrested by the Central Bureau of Investigation (CIB) of Police on the charge of falsifying revenue statements.
According to the police, they have manipulated the amount in the software of the revenue tax system so that the tax liability of Rs. According to Bureau Spokesman and Information Officer Superintendent of Police Sudhir Raj Shahi, the two accused doubled the revenue received from Bhatbhateni Supermarket to the Nepalese government.
"Revenue tax liability of 2 billion 34 crore 16 lakh 42 thousand 816 rupees was changed to 6 crore 26 lakh 94 thousand 19 rupees and made 13 crore 9 lakh 59 thousand 6 hundred nine rupees," he said.
Parajuli of Bihadi-3 in Parbat and Bhimsen Thapa-4 of Gorkha Pandey were currently living in Bharatpur-11 of Chitwan. They were arrested from an audit firm named 'Bihadi Business Management' located in Bharatpur Metropolitan Municipality-3 and a case has been registered for an offense under the Electronic Transactions Act-2063. A business management company is an accounting firm. CIB is also looking for the directors of the organization.
The department issued a statement claiming that its integrated tax system is completely secure. "There is a provision to prepare username and password by the taxpayer himself or through the tax officer and the responsibility for its security is also the responsibility of the taxpayer," the statement said.
The department claims that the details of a taxpayer towards value added were wrongly entered by an unauthorized person using the taxpayer's 'user name' and 'password' without entering the department's system. "We found out and informed the police," Deputy Director General of the Department Seventak Pokharel said, "The taxpayer's user name and password were misused." The police said that they are investigating the incident further.
CIB spokesperson Shahi said, 'We are studying this matter, the issue of what benefit they will increase the liability in this way is not clear. Statement work is being done with Bhatbhateni and the accused.'
The police have recovered one laptop, CPU, WiFi router, DVR, mobile phone from them. They were arrested on January 5 and are being investigated by the Kathmandu District Court with a 7-day deadline. The police said that they will coordinate with the department and get information about other aspects of the case.
Cyber security expert Vivek Rana has pointed out that the incident should be seriously investigated. "Taxpayers can fill in their details on the department's tax system portal, but they cannot change the VAT amount," said Rana, "VAT amount is 13 percent, the system itself keeps it as a parameter. In this case, the parameters of the system have been changed which the tax payer cannot do.
Rana expressed his suspicion that either the system is broken or someone inside the system has committed fraud. He suggested that the department should thoroughly investigate the incident and review whether there are other weaknesses in the system.
"This system made by the department is a centralized system, it is challenging for unauthorized outsiders to gain access to it," Rana said, "It can be suspected that there is a weakness in the system or the involvement of people within the system."
