Foodpanda denies VAT evasion charge
Foodpanda has always been a fully compliant company, fulfilling our VAT and tax obligations as an IT-enabled company as per law, says a press release
Foodpanda Bangladesh, the largest online food and groceries delivery service in the country, denied VAT authorities' allegation of VAT evasion, said a press release.
"It is important to point out that foodpanda has always been a fully compliant company, fulfilling our VAT and tax obligations as an IT-enabled company under service code S-099.10, as per law," said Foodpanda authorities in the press release issued Saturday.
Ambareen Reza, Foodpanda Bangladesh co-founder and managing director, said, "Bangladesh VAT Authorities conducted a drive at our Gulshan office on 15 October, with full cooperation from the foodpanda team. We saw allegations of VAT noncompliance in the media on October 28 (Thursday). To-date, we have not yet received any official communication from the VAT authority of Bangladesh."
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Foodpanda authorities issued the press release to protest against reports published on Thursday in several newspapers, including The Business Standard.
According to that report, the VAT Intelligence Department had filed a case on Wednesday against Foodpanda for evading Value Added Tax (VAT) worth Tk3.40 crore.
The press release said, "If these alleged discrepancies are correctly identified per law, we fully intend to correct these discrepancies at the earliest. We are working closely with the VAT authorities to ensure everything is in place."
"We have every intention to work within the laws of the land and will be collaborating with the VAT authorities to proactively resolve any issues together," it read.
Earlier, on 15 October, a team of VAT detectives conducted a drive at the Gulshan offices of Foodpanda Bangladesh Limited in the capital, following specific allegations of VAT evasion.
The drive was led by Deputy Director, Nazmun Nahar Kaiser, and Assistant Director, Md Mohiuddin, of the VAT Intelligence Department.
The BIN number of Foodpanda is 002156066-0101. Bikers working for the company collect food from about 5,000 restaurants for delivery to consumers. Based on prior agreements with those sellers/vendors, Foodpanda delivers their food in exchange for a commission.
