Several expenses of former Jyoti Life Insurance are Unwarranted

Kathmandu: It has been found that many of the expenses incurred by former Jyoti Life were for the purpose of tax evasion. In addition, it has been found that the financial statements before the merger have not been prepared yet as many of the expenses incurred in the company were found to be unreasonable.

Last year, the commission for the investigation of Abuse of Authority also gave written instructions to the Nepal Insurance Authority to take action. The authority has not yet been able to clarify the accounts before the merger after giving immunity without taking any action at that time.

During the merger, it was agreed that all the assets and liabilities would be brought under Surya Life’s system and Jyoti Life would be liquidated. According to the sources, it has not been possible to liquidate the company due to the fact that the accounts could not be agreed upon.

Although the commission for the investigation of Abuse of Authority sent the anti-corruption agency twice to investigate the tax evasion, no action was taken because the insurance authority was protecting Khatri. However, even after the anniversary of the merger, the company’s accounting books could not be submitted, and now the chaos within the company has not calmed down.

For the purpose of tax evasion, there was a demand that the Internal Revenue Office should also investigate the company that showed a negative taxable income of one billion rupees when the accounts were submitted to the tax office.

 According to the sources, it is understood that the expenditure of Millions of rupees incurred by the then CEO of Jyoti Life, Prakash Bikram Khatri, is yet to be proved and it is also very difficult to reconcile the tax accounts. The company has started talking about the non-payment of taxes. According to company sources, about 100 million tax liabilities will be created on the business promotion expenses incurred by CEO Khatri.

It has been found that Jyoti Life’s PAN No. 605954557 has not submitted the required details to the Internal Revenue Office in Pokhara. Recently, there was a case that the company entered into the merger without paying taxes even before the merger. The issue has not been resolved yet.

As the Insurance Authority shielded CEO Khatri and prevented him from investigating by sending false information to Abuse Authority, there is still a suspicion that action will be taken against the CEO of Jyoti Life this time as well.