KATHMANDU: The Department of Revenue Investigation (DRI) has filed a case demanding a staggering amount of Rs. 10.36 billion against Cotiviti, an American investment IT company, for alleged revenue fraud.
According to DRI sources, the case has been filed against Cotiviti Nepal for an alleged revenue evasion of Rs. 5.18 billion, along with an additional claim of Rs. 5.18 billion in penalties.
This is the first time such a hefty penalty has been demanded against a single business entity, as stated by DRI Director General, Navaraj Dhungana.
The Cotiviti Nepal, established in full foreign investment, is accused of not informing the Nepali authorities about changes in share ownership during its establishment, as well as failing to submit taxes under the Income Tax Act, 2055, and the Value Added Tax Act, 2052.
Furthermore, the department alleges that the company failed to fulfill its duties in creating taxes due to the alleged undervaluation of services exported from Nepal.
Therefore, along with the hefty penalty and the claim for revenue evasion, the department has also accused the company of neglecting its duty to pay taxes appropriately.
