The Nepalese government gave casinos three days to settle their unpaid taxes at the beginning of March. Now Tiger Palace Casino Resort is in the news regarding taxes. The taxman has come to the casino resort, raided it, and says the company allegedly sold alcoholic beverages to clients illegally. Tiger Palace is located in Bhairahawa, which is one state that allows gambling casinos.
The Background Story on Taxes
According to the Kathmandu Post, Tiger Palace Casino Resort is an Australia listed casino, operated by Silver Heritage Group. They repeatedly ignored warnings from Nepal’s Inland Revenue Office, according to media reports.
The government asked for the casino to get a license before they could sell alcohol in the casino area. Since it is a resort casino, the hotel section was able to have alcoholic beverages, but the license did not cover the casino.
Tiger Palace, according to government officials can sell liquor but must keep a watch that it does not go into the casino and that they are not selling it in an area that is designated casino, without getting a different license. During the raid, joint parties from the Inland Revenue Office and police seized 121 bottles of alcohol found on the casino floor. The bottles were worth a total of $2,000.
If the casino resort is found guilty of violating Nepalese laws the Inland Revenue Office will take legal action.
Silver Heritage has been linked to other controversies since they opened the doors to the casino resort. The resort cost $51.8 million to build.
In March, Rajendra Bajgain, an ex-Silver Heritage employee accused the casino operator of hiring 22 foreigners. These foreign nationals were placed in jobs at Tiger Palace without proper work permits from the government.
The labor code says foreigners who wish to work in the country, but who hold a tourist visa that is good for 150 days, can obtain a work permit that would last for the 150 days. However, they must apply for the permit to work. The allegations surfacing about the company also include something linked to Limited Management Service. The service severed its ties with Bajgain in February due to his complaints.
Bajgain filed a complaint with the Immigration Department, who formed a three-member panel to look into the illegal labor practices. The panel was led by Raju Prasad Poudel, the Immigration Undersecretary. They inspected Tiger Palace and interviewed officials to see if there was any wrongdoing.