The National Board of Revenue (NBR) has asked the banks to provide a list of private commercial firms with an average annual transaction or balance of Tk 100 crore or above to run a special audit programme for detecting any VAT evasion.
The commercial banks will have to provide the information on companies which had an average annual transaction or balance of Tk 100 crore or above between January 1, 2014, and December 31, 2019, according to the instruction issued by the VAT Audit, Intelligence and Investigation Directorate of the NBR on February 10.The banks are asked to provide such information sought by the NBR under article 82 of the VAT and Supplementary Duty Act 2012.
The VAT intelligence wing of NBR also requested Bangladesh Bank to issue the necessary instructions to all the commercial banks in this regard.
The information required by NBR includes business identification number (BIN), taxpayer identification number (TIN), RJSC registration number, import and export registration certificate number, type of business, and a brief description of the nature of business or service.
The VAT wing has the jurisdiction to take legal action in case of non-compliance with the request.
This is the first time the VAT intelligence wing is conducting an audit programme to get a clear picture of the sector. As per NBR statistics, the number of BIN holders now is around 1.30 lakh while around 40,000 of them file returns.
However, manufacturing companies, commercial banks, insurance and leasing companies will remain out of the purview of the special audit.