The Inland Revenue Department (IRD) has cautioned taxpayers not to conduct commercial transactions through personal bank accounts.
In a public notice, the department stated that violators will face a cash penalty of Rs 5,000 or two percent of the transaction amount — whichever is higher. The IRD also reminded taxpayers not to accept commercial payments made through personal accounts, whether by cheque, QR code, or any electronic method.
The Finance Act 2024 has continued the provision restricting businesses from using personal accounts for commercial purposes.
Last year, the IRD and the Financial Intelligence Unit of Nepal Rastra Bank detected several instances of businesses using personal accounts to evade tax. In fiscal year 2023/24, suspicious transactions worth Rs 12 billion were recorded, with 113 cases forwarded for investigation.
Additionally, the IRD announced it will adopt risk-based tax assessment for large taxpayers while continuing full assessments for those under large and medium taxpayer offices.
