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 The trend of using personal bank accounts for business transactions to evade taxes is on the rise in the country as evidenced by the number of such cases reported to the Financial Intelligence Unit (FIU-Nepal), according to the Nepal Rastra Bank (NRB). 

In the annual report of FIU-Nepal, the NRB said that personal bank accounts were being used to evade tax instead of business and institutional bank accounts.  

In its findings, the report stated that 37 percent of suspicious transaction reports received from Jan 2020 to Dec 2022 were related to the suspicion of tax evasion through use of personal bank accounts for business transactions. On an average, monthly 65 such suspicious transactions were received by FIU-Nepal during this period, it is said.

According to the central bank, 48 percent of such business transactions were linked with proprietorship business, 33 percent with private limited companies and 19 percent of such firms’ registration status remained unknown. 

“Nature of such involved businesses are trading, manufacturing, hotels and restaurants, travels, medical etc. Multiple personal accounts were found to be used for transactions for a single business. For such transactions, personal accounts of the proprietor or shareholder is used in most of the cases. Other involved are: family members, employees,” the report revealed.

The FIU-Nepal analyzed 204 such cases and 113 were disseminated to the Department of Revenue Investigation and Inland Revenue Department for further investigation. “Based on disseminated cases, a suspicious amount is approximately Rs 12 billion on an annual basis,” it stated. 

In its recommendation, the report has urged all the stakeholders to play an active role for harmonization in the nature of business and the type of account used for the related transactions. 

The customers are recommended to be aware of types of accounts and its purpose at the time of customer onboarding and on a regular basis while the business firms and companies need to be made aware regarding use of the firm’s or company’s account while conducting business related transactions.

Likewise, the regulators have been urged to impose fines and penalties on use of personal savings accounts for business related transactions. The use of personal bank accounts for business related transactions should be discouraged through directives.

Furthermore, the investigating agencies are recommended to include the personal accounts of shareholders, promoters, proprietors, key staffers and their close associates while undergoing tax assessment or any other kind of investigation. 

The Indian Embassy in Kathmandu celebrated the 75^th Republic Day of India on Friday.

At a program organized at Kathmandu-based Indian Embassy, Indian Ambassador to Nepal, Naveen Srivastava inaugurated the programme by hoisting the national flag of India.

On the occasion, he extended best wishes to the members of the Indian diaspora in Nepal. A video clip of the address to the nation by Indian President Droupadi Murmu was also screened. 

In the video message, the Indian President talked about the achievements gained by India in different sectors since the last Independence Day, including the G20 Summit chaired by India, and the Chandrayaan-3 mission.

Similarly, the Indian envoy distributed Rs 50.7 million and blankets to wives of deceased army and their close relatives, and honored them. 

Reiterating his commitment to support Ex-Indian Gurkha soldiers, he unveiled a magazine Ex-2024 which comprises the welfare efforts undertaken by the Indian government for the Ex-Indian Gurkha soldiers residing in Nepal.

The Indian Embassy also on the occasion gifted books worth Rs 1.9 million to 30 different organizations.

The gold is being traded at Rs 118, 000 per tola in the domestic market on Friday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, tejabi gold is being traded at Rs 117, 450 per tola.

Similarly, the silver is being traded at Rs 1,400 per tola today.  

Forming governments, formulating laws, overseeing parliamentary functions, conducting hearings and approving annual budgets are the main responsibilities of legislatures. While these functions collectively define the essence of parliamentary duties, the main responsibility remains the formulation of laws.  The winter session of parliament, also known as the bill session, is beginning on Feb 5. The track record of the previous session is not satisfactory when it comes to formulating laws. All the stakeholders, the government, parliament secretariat and political parties, therefore, must be serious about providing sufficient business to the house in this session.

The delay in endorsing crucial bills is impeding the functioning of the federal, provincial, and local governments. Of particular concern is the prolonged delay in endorsing the Amendments to Some Laws relating to AML and Business Promotion Bill which has been gathering dust in the Federal Parliament Secretariat for two years. The failure to promptly endorse this crucial bill is increasing the risk of Nepal being listed by the Financial Action Task Force as a jurisdiction with strategic AML/CFT deficiencies. Political parties must recognize the potential repercussions it could have on Nepal's global financial standing and correspondent banking relationships, and act swiftly to address these concerns. 

Equally pressing is the need for immediate endorsement of crucial bills such as the one related to the Truth and Reconciliation Commission. Although top party leaders have held numerous discussions on the Bill, key contentious issues still remain unresolved. Despite this, the government is preparing to endorse the bill during the winter session.  The Parliament is losing the trust of the people as it fails to perform its key tasks. The operational costs of Parliament are significant, but the performance of both Parliament and parliamentarians is disheartening. It is important for parliamentarians to collaborate with the government in ensuring the timely fulfillment of their legislative responsibilities. 

To expedite the law-making process, parliamentarians can collectively urge the government to provide the necessary business and work towards a consensus on key bills. The continued sluggish pace threatens to further diminish public faith in Parliament, especially at a time when there is growing discontent with the current constitution and political systems. The failure of Parliament to enact laws in a timely manner is affecting effective functioning of the federal system, thereby raising questions about the relevance of such structures. The government, major political parties, and lawmakers need to address the issue urgently because an ineffective Parliament means there will be more attacks on the system.

The Election Commission has informed that voting for 19 members of the National Assembly (NA) was held in a peaceful manner today. In the scheduled voting conducted from 9 am to 3 pm, the voter turnout was 99 percent, EC added.

According to a press release issued by EC Spokesperson, Shaligram Paudel, there were a total of 549 voters from all seven Province Assemblies, among which, 546 cast votes. It is 99.45 percent turnout.

Similarly, from the local levels (rural municipality, municipality, sub-metropolis and metropolis), there were a total of 1,497 voters, among which, 1486 cast votes. It was 99.97 percent turnout. 

In total, the voter turnout was 99.32 percent, according to the EC.

Nepali Congress candidate Krishna Prasad Sitaula, common candidate of the ruling coalition, has emerged victorious in the National Assembly election in Koshi Province.

He defeated Rastriya Prajatantra Party candidate Uddhav Paudel.

Ruling coalition’s Sitaula secured 5, 292 votes while CPN-UML-RPP coalition’s candidate Paudel got 4, 562 votes.

Similarly, Rukmani Koirala of the UML secured victory in the women's category. She defeated Champadevi Karki of the CPN (Maoist Center).

The Nepal Stock Exchange (NEPSE) plunged by 3. 94 points to close at 2,084.09 points on Thursday.

Similarly, the sensitive index dropped by 0. 96 points to close at 379. 46 points.

A total of 11,689,955-unit shares of 304 companies were traded for Rs 3. 76 billion.

Meanwhile, Samling Power Company Limited was the top gainer today with its price surging by 9. 99 percent. Likewise, Citizens Mutual Fund 2 was the top loser as its price fell by 5. 03 percent.

At the end of the day, the total market capitalization stood at Rs 2. 27 trillion.

Ambassador of Australia to Nepal, Felicity Volk, paid a courtesy call on President Ram Chandra Paudel at the Rastrapati Bhawan, Shital Niwas today.

On the occasion, discussions were held on bilateral relations between Nepal and Australia and on matters of mutual interest and concern, the Office of the President said.

President Paudel expressed the confidence that Australia's cooperation for the social and economic development of Nepal-like land-locked countries will further increase in the coming days, not only in its capacity of the prosperous economy of South-East Asia and Pacific region, but as it also has importance presence in the global economic forum.