Bottlers Nepal Limited, a leading beverage company of Nepal managed by India’s INSWA (India and South West Asia) Coca – Cola, the country’s only Coca-Cola franchise holder, has been indicted for a multi-billion rupees tax evasion case.
The Department of Revenue Investigation under Ministry of Finance, Nepal government, has filed a case demanding Rs 7.43 billion equivalent to 61.92 million US dollar in taxes.
According to the department’s chief Prakash Paudel the case lodged at the Patan High Court demands the company pay the remaining taxes, plus the same amount in fines.
Bottlers Nepal has been accused of evading capital gains tax amounting to Rs. 3.72 billion in relation to the sale of more than 50 percent shares of the company and equal amount of fine. The department had launched an investigation into the case few months ago.
In the case filed by the Department Shukla Wasim of Coca Cola SABCO Asia, a Dubai based Holding Company chairperson, Managing Director Pradip Pandey and Finance Controller Ashok Kumar Mandal among others have been made defendants.
Coca Cola SABCO, which has major share holding in Bottlers Nepal, has sold its more than 50 percent shares to European Refreshment based in Ireland in Europe few months ago without paying a single rupee to the Nepal Government.