Bengaluru businessman coughs up nearly Rs 1 crore in tax dues for Ferrari, Merc | Bengaluru News

Bengaluru: A city-based businessman, who allegedly registered his high-end Ferrari and Mercedes-Benz outside Karnataka to evade the state’s steep lifetime taxes, has been made to pay nearly Rs 1 crore in dues after a transport department inquiry.The department recovered Rs 61.9 lakh for the Ferrari 812 Superfast, which was registered in Jharkhand, and Rs 37 lakh for the Mercedes-Benz, registered in Puducherry. Officials said both vehicles were in regular use within the state, despite being registered elsewhere.“He is a resident of Bengaluru and operates his business from here. Both high-end cars were registered outside Karnataka to avoid the higher tax slabs applicable within the state. For instance, on the Rs 5-crore Ferrari, which he bought 4-5 years ago, he paid just Rs 14 lakh in Jharkhand. Had he registered it in Karnataka, he would have been liable to pay nearly Rs 1 crore in tax,” a senior transport department official said. Under existing rules, if a vehicle registered outside Karnataka is used within the state for more than 12 months, the owner is required to pay the applicable road tax. “He failed to comply,” the official added.The department issued a notice to the businessman in March this year, seeking recovery of unpaid dues. He initially claimed the Ferrari had only been brought to Bengaluru for servicing in Jan and would be returned to Jharkhand within three months.“Meanwhile, we gathered evidence showing both cars were being regularly used in Karnataka for over a year. On Friday, we confronted him with the details and warned of legal action for misleading the department,” the official said. The businessman subsequently agreed to settle the matter and issued cheques to cover the outstanding taxes.This is the second such high-profile recovery by the department in recent days. Earlier this week, it collected Rs 40 lakh in tax dues from a businessman who had purchased used Rolls-Royce cars previously owned by Bollywood actors Amitabh Bachchan and Aamir Khan. The cars, originally registered in Maharashtra, were being operated in Karnataka for years without payment of local taxes.