Cocola Food Products Limited, the company known for its Marie biscuits, has been accused of evading Tk 120.40 crore (Tk 1,203,959,121) in VAT. The VAT Audit, Intelligence and Investigation Directorate has filed the case against the company, which markets biscuits, chocolates and other confectionery, and against its associated firms.
According to National Board of Revenue (NBR) sources, VAT intelligence found the irregularities while investigating a complaint lodged with the Anti-Corruption Commission (ACC). It found deposits of about Tk 646 crore in 19 bank accounts held by five associated firms in Gazipur controlled by Cocola Food’s owners.
None of these firms is registered for VAT, and none has filed a return. The trade licences and bank accounts are alleged to have been opened using addresses that do not exist.
Cocola Food’s founder and chairman is Mohammad Shukur Mia. Its directors include his son Noman Mia and Md Abu Sayeed.
To secure the revenue, the investigators have recommended freezing the bank accounts of the people and firms concerned.
The investigation report says Cocola Food’s sales over the five years from July 2019 to June 2024 came to Tk 945.02 crore (Tk 9,450,194,896). Of that, the team found sales of Tk 47.59 crore (Tk 475,873,709) had been concealed. Unpaid VAT on those sales, with interest, comes to Tk 9.97 crore (Tk 99,667,159).
The company also owed Tk 12.18 crore (Tk 121,763,534) in VAT deducted at source on purchases and other spending, but paid only Tk 1.33 crore (Tk 13,261,564). With interest, the amount outstanding is Tk 12.55 crore (Tk 125,543,801). A further Tk 9,728,519 is owed on rent for premises.
In all, the investigators put the parent company’s VAT evasion over five years, with interest, at Tk 23.49 crore (Tk 234,939,478).
The investigation also found deposits totalling Tk 646.01 crore (Tk 6,460,130,961) in the bank accounts of the five associated firms. Treating that money as sales income, it calculated unpaid VAT at 15 percent of Tk 96.90 crore (Tk 969,019,644).
Of this, Unique Traders’ nine bank accounts received Tk 444.17 crore (Tk 4,441,698,646), on which the VAT evaded is Tk 66.63 crore (Tk 666,254,796). NS Corporation’s five accounts received Tk 29.53 crore (Tk 295,348,114), with unpaid VAT of Tk 4.43 crore (Tk 44,302,217).
Bismillah Trading’s two accounts received Tk 51.38 crore (Tk 513,806,482), with VAT evaded of Tk 7.71 crore (Tk 77,070,972). Subhani Corporation’s two accounts received Tk 103.82 crore (Tk 1,038,191,569), with Tk 15.57 crore (Tk 155,728,735) in VAT evaded, and Mia Fisheries and Dairy’s one account received Tk 17.11 crore (Tk 171,086,150), with Tk 2.57 crore (Tk 25,662,923) evaded.
The investigators say they found no sign of any business operating at the addresses given. The report says Cocola Food’s sales money was moved into the associated firms’ bank accounts as a way of evading revenue. On the basis of common ownership and shared interest, the intelligence unit identified seven of eight firms as associates.
The report recommends separate cases against the parent company and the associated firms, the issue of demand notices and the freezing of the owners’ bank accounts. The NBR said that after the case was filed, the documents were sent to the Gazipur VAT Commissionerate for the necessary action.
Attempts were made to reach Cocola Food director Md Abu Sayeed for comment. He did not answer his phone, and at first did not reply to a WhatsApp message. Later, in a written reply, he asked: “Who gave you this news? Did a kite fly off with your ear?”, a Bengali saying for believing a rumour without checking. Repeated further attempts to get his comment were unsuccessful.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report