NBR set to appoint tax agents to boost revenue

The National Board of Revenue (NBR) is going to appoint tax agents in the fiscal year 2023-24 in a bid to raise revenue and widen tax net in the country.

To this end, NBR will issue a statutory regulatory order (SRO) on June 1 this year, sources say.

A tax agent can only prepare income tax returns and he/she cannot act as a representative of the taxpayer in hearing or any other matters in the income tax office, according to the new regulation.

The function of the supporting organisation is to maintain the profile of tax agents or income tax return preparers, monitor efficiency, and undertake efficiency improvement activities, it added.

A tax agent will get 10 per cent of the minimum tax collected for the first three years, 2 per cent up to Tk 15,000, 1 per cent up to Tk 50,000, and 0.5 per cent on the remaining tax.

For the fourth and fifth years, he or she will get incentives at the rate of 5 per cent, 1 per cent, 0.5 per cent and 0.25 per cent respectively. However, 10 per cent of the tax agent’s incentives will be payable as service charge to the supportive institutions.

If a taxpayer submits a return through another agent after the first year, that agent will get incentives at that rate for the second, third, fourth and fifth years. To get incentives, the tax agent has to apply to NBR through the supporting institution.

As per the regulation, anyone can work as a tax agent after obtaining minimum bachelor’s degree, but the candidates interested in becoming tax agents should apply to NBR.

Besides, applications can be sent through NBR-listed institutions and in both cases, NBR will conduct the examination of the agent candidates.

Chartered accountants, cost and management accountants or chartered secretaries, lawyers registered with Bangladesh Bar Council, and tax lawyers recognised by NBR can work as tax agents without examination.

It states that tax agents should have an understanding of preparing and submitting income tax returns, and must have knowledge of computer and ICT.

Applicants can apply directly to NBR or apply through supporting institutions, and NBR will assign a unique identification number to each agent.

NBR may select one or more supporting institutions based on geographical location and those companies will get preferences which have experience in income tax services and consultancy.

The supporting organisations should have the capacity to provide necessary training to income tax return preparers and should have the capacity to provide necessary logistics for return filing including computer labs.

The rules also state that the tax agents shall assist in the preparation of the returns of the taxable persons and the persons’ consent must be obtained before this.

A copy of the prepared return should be given to the taxpayer. Finally, agents have to explain the proof of return submission to themselves and the taxpayers.

The regulation includes the provision of the cancellation of the tax agent’s certificate and contract with the supportive organisations for irregularities.

According to the regulation, the certificate will be canceled if the tax agent does not give the return deposit slip to the taxpayer, if the taxpayer’s information is not mentioned correctly in the return, if he claims money fraudulently or if he commits financial irregularities or fraud or if he intentionally understates the income in the return.

Besides, NBR will terminate the contract with the supporting organisation if it fails to enroll a satisfactory tax agent or engages in any activities prejudicial to revenue and public interests.

The NBR can initiate criminal proceedings under the Income Tax Act or ordinance against either the tax agent or the supporting organisation for violating the confidentiality of the taxpayer’s information.