Actor Vijay is fined Rs 1 lakh for tax evasion: What's the issue and how he has to pay?

Madras High Court has on Tuesday imposed a fine of Rs 1 lakh for actor Vijay concerning importing the Rolls Royce luxury car from England. By dismissing the actor's petition in the matter, the court has directed Vijay to pay the fine to the Chief Minister's Public Relief Fund as a donation to fight the Covid pandemic. As per the order, the actor has to pay the fine in two weeks.

Actor Vijay is one of the Kollywood celebrities to own a Rolls Royce car, which is considered to be the world's most prominent luxury vehicle. He had imported the car from England in 2012 and he moved his plea to the high court seeking its directive of revoking the entry tax on his imported car. In his affidavit, Vijay has said he had paid import duty on his Rolls Royce Ghost car while importing it from England. 

However, when he approached the Regional Transport Officer and the Motor Vehicles Inspector to get a new registration mark assigned for his vehicle, the authorities had said that he has to pay an entry tax for his car post which an official certificate will be issued. The actor had then decided to challenge the entry tax and in his plea, he had argued that extraordinary entry tax has been imposed on his vehicle. 

On Tuesday, the High Court went hard on the actor and dismissed his petition of seeking an evasion from paying entry tax. The court has said that the petitioner (Vijay) has imported a prestigious car from England but he didn't pay entry tax as per the provision of the act. He had filed a writ petition with the view of avoiding the payment of entry tax for the car. The high court has noted that the petitioner is a reputed actor and he has to pay the tax promptly. 
 
In its judgment, the court has observed that Vijay hadn't mentioned his profession in his affidavit and it has said that it is surprising that the actor has skipped his profession in his affidavit. By dismissing his petition, the court has ordered Vijay to pay Rs 1 lakh fine and he has to pay the penalty to the Chief Minister's Public Relief Fund as a donation. The actor has been ordered to pay the fine in two weeks. Levying the fine, which is seen as a setback for Vijay, the court has highlighted that the actors who have a huge fan base are considered real heroes. 

The High Court bench noted, "People are under the impression that they are real heroes. Hence, they are not expected to be like reel heroes. The act of evading tax is considered as an anti-national habit and unconstitutional. These actors are displaying themselves as the saviour of social justice on the screens but they are evading tax, which is not in consonance with the provisions of the statutes." 

The high court further said that the taxation system is the backbone of the nation's economy which keeps revenue consistent, manages growth in the economy, and fuels industrial activity. "Tax is mandatory and it is not a voluntary payment or donation", the court has added in the judgment. It must be noted that Vijay is one of the Kollywood celebrities to own the Rolls Royce luxury car. Director Shankar and Actor Dhanush are among the Rolls Royce club.  

 

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