Monday, 27 September, 2021

TIB hails move to bring 80,000 companies under tax net

  • Staff Correspondent
  • 3 August, 2021 12:00 AM
  • Print news

Transparency International Bangladesh has welcomed the detection of some 80,000 out-of-tax-net companies and the move to bring them under tax net by the NBR taskforce.

In a statement on Monday, the graft watchdog urged the government to look into how such a huge number of companies were out the tax net for so long and how much tax they have dodged so far.

At the same time, it also called for identifying procedural weakness of the concerned institutions’ and taking initiatives to remove them to fend off recurrence of such things.

“The detection of a large number of companies who are out of the tax net by the NBR’s corporate compliance proves that the country has huge financial irregularities, grafts and lack of governance,” said Dr Iftekharuzzaman.

The taskforce found that a registered company has been doing business for nearly 50 years without paying any tax, while some 1,400 companies have been registered in only two addresses.  An individual was found to director of 46 companies but he has TINs for only four of them.  “These incidents are even beyond the fables of financial mismanagement,” Dr Iftekharuzzaman commented. This culture of dodging tax by the huge number of companies has not started overnight or they are not taking this undue advantage for a short time, he alleged.

This has happened in collusion with a nexus of concerned people and these people should be brought to accountability, he added also suggesting for ending institutional weakness.

Only 26,000 business institutions submitted income tax return even though 78,000 have TIN and nearly half of them submitted false audit report to evade tax, the TIB boss said.  To prevent such practices In future, effective strategies should be specified apart from establishing technological links between the tax dealing institutions and ensuring coordination among them, TIB suggests.