NBR asks IDLC to resolve tax disputes

The National Board of Revenue (NBR) has recently ordered IDLC Finance, the country’s leading non-bank financial institution (NBFI), to settle various pending income tax cases between the exchequer and the company through the alternative dispute resolution (ADR).

Acknowledging the matter, IDLC Finance in a disclosure on Sunday said an agreement to this end was signed among NBR, IDLC Finance, and the facilitator.

All the three parties agreed upon various long-pending grounds from the year 2002 to 2020, which have been resolved through alternative dispute resolution (ADR), the DSE disclosure read.

However, for the final settlement of the pending income tax cases, IDLC said, it was now able to release additional tax provisions from the previous years, and the amount of outstanding income tax would be finalised after final assessment by the deputy commissioner of taxes as per the decision of the three parties.

On the same day, the company reviewed its financial report for 2022 and declared a 15 per cent cash dividend to shareholders for the year.

The publicly traded financial institution’s consolidated net profit profit dropped by Tk 20.15 crore or 9.5 per cent to stand at over Tk 191.45 crore in 2022, against Tk 211.60 crore in the previous year, as per the company’s financial

report.

However, IDLC Finance alone made a net profit of Tk 161.96 crore in 2022, up from Tk 157.62 crore in the previous year.

Its consolidated earnings per share (EPS) dropped to Tk 4.61 for the year ended December 31, 2022, from Tk 5.09 in the year before.

The consolidated net asset value (NAV) per share also increased to Tk 43.56 in 2022, while its consolidated NOCFPS was negative Tk 21.10 last year.

IDLC Finance shares remained stuck at the floor price of Tk 46.50 per share since October 17, last year.