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NBR starts probe into corporate tax evasion

Staff Correspondent
24 Sep 2024 07:08:18 | Update: 24 Sep 2024 07:08:18
NBR starts probe into corporate tax evasion
NBR Chairman Md Abdur Rahman Khan speaks to reporters at the NBR Bhaban in Agargaon, Dhaka on Monday - Courtesy

The Large Taxpayers’ Unit (LTU) and Central Intelligence Cell (CIC) wings of the National Board of Revenue (NBR) are investigating the corporates tax evasion, said its Chairman Md Abdur Rahman Khan.

He said this while talking to reporters after the official launching of the new e-Return Service Centre at the NBR Bhaban in Dhaka’s Agargaon area on Monday.

The NBR Chairman said "We want to build a discrimination-free and corruption-free Bangladesh and the NBR is pledge-bound in this regard. We'll accomplish the task taking alongside all."

Regarding the measures taken by the NBR to prevent tax evasion, Rahman said, “We are giving priority to those cases and individuals against whom we are getting specific data and information from various sources like media and intelligence and such efforts will definitely continue against the corporate taxpayers. It's routine work actually...it's not possible in one go.”

About the performances of tax zones on the drives against the large tax evaders, he said the time has just started after the formation of the interim government as it takes some time for taking necessary preparations.

Regarding the low tax return submission, the NBR chairman said, “There are over 1.4 crore tax identification number (TIN) holders across the country. But only 4.4 million taxpayers filed their returns last year. We want to raise the number of returns, if they submit returns online, then it will be easier for them.”

“We want to hear directly from the taxpayers what kind of problems they are facing while submitting returns through online and then we will take action promptly,” he said.

About the allegation of misuse audit selection by taxmen, Rahman said, “We often receive such kind of objections from the taxpayers. For this, we want to select auditing of tax files without the intervention of human to avert any question. So, we will make such selection through digitised method.”

Asked whether the tariff on various commodities would be reviewed, he said it would be looked into during the budgetary process.

“Some reforms will take place in the revenue sector and those won’t be carried out in one go rather gradually,” he said.

About the justification of existing tax-free income ceiling, the NBR chief said if the ceiling is raised further, then a big chunk of taxpayers would go out of the tax net since it is very small here representing only 5.2 per cent of the total population which is 23 per cent in India.

“Out of the total taxpayers of some 1.4 crore, some 3.0-3.4 million taxpayers do not pay tax,” he said adding that if the number reduces further, then the tax collection would decline more.

The NBR chairman further said the government is very much sincere in reducing the backlog of tax related cases as a separate bench has already been formed in this regard with the High Court as well as the ADR initiative is also paying off.

About the service centre, he said through availing service from this centre, the taxpayers would not need to go to the tax office to take due services as well as they can print the TIN certificates.

“It’s really a user-friendly system,” he said wondering why the total number of taxpayers through submitting e-returns did not reach 10 million over the last four years since such service was launched in 2021.

Directing the concerned revenue board officials to make this e-return popular, Rahman, also the secretary of the Internal Resources Division (IRD), said that they would resolve the existing problems and barriers in the way of this service with support from the EU.

“Make this e-return popular as it is easy and safe...this is environment friendly by all means...It also saves time and cost,” he told the tax officials.

Rahman also urged all to submit their returns online in a bid to avail their desired services with ease and comfort.

Md Abdur Rahman Khan, along with Michal Krejza, Head of Cooperation, Delegation of the EU to Bangladesh, formally opened this new service centre.

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