If business magnates play fair or cook the books

If business magnets in Bangladesh play fair or cook the books crops up as a moot question as their tax files do not reflect the cache of wealth they posses at home and abroad.

A recent finding by the tax sleuths reveals stunning facts on paid taxes, assets and income shown in the tax files of six top businessmen who are under scanner of law-enforcing agencies.

The revenue-sector Central Intelligence Cell (CIC) launched investigations last month under government directives to identify discrepancies between the declared wealth of these individuals and their actual assets.

"We have already requested documents from banks, financial institutions, land-registration offices, and the Central Depository Bangladesh Limited (CDBL) as part of our investigation about these taxpayers," a senior tax official said

Field inspections have begun, with teams dispatched outside Dhaka to nose out unreported assets such as fish farms and other income sources omitted from tax files.

In a notable case of piling up opulence, former lawmaker Saifuzzaman Chowdhury is alleged to have failed to report a large portion of his assets in his tax file. His tax jurisdiction is in Chittagong. The CIC has collected his tax file for scrutiny of his financials following a recent Al Jazeera scoop.

According to taxmen's findings, Mr. Chowdhury, who paid Tk 1.9 million in taxes on a declared income of Tk 7.4 million, holds a total wealth of Tk 180 million.

His assets include shares valued Tk 9.6 million, fixed deposits and securities worth Tk 3.25 million, and non-agricultural income of Tk 100 million. He has shown loans worth Tk 70 million in the tax file.

However, tax officials discovered he only reported one of two cars under his name--a violation of tax laws.

Tax authorities are also scrutinizing other notable figures as follows: Aziz Khan, of Summit Group and listed as a billionaire by Forbes, who paid Tk 28.63 million in taxes last year on an income of Tk 89.77 million, official data showed.

Salman F Rahman, Beximco owner and private investment affairs adviser to deposed Prime Minister Sheikh Hasina, paid Tk 86.35 million on an income of Tk 253.07 million.

Obaidul Karim, chairman of Orion Group, paid Tk 21.84 million on an income of Tk 65.64 million.

Ahmed Akbar Sobhan, chairperson of Bashundhara Group, paid Tk 1.68 million in taxes on a declared income of Tk 5.92 million.

Nazrul Islam Mazumder, Chairman of Nassa Group, paid Tk 116.80 million on wealth totalling Tk 350.94 million.

Experts and officials alike have expressed concerns over these discrepancies in actual and declared wealth and taxes thereon.

Professor Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD), welcomes the tax authority's actions as timely and necessary.

"High-net-worth individuals must be subjected to intensive scrutiny. The tax authorities should conduct forensic investigations to uncover any hidden asset and reclaim taxes where necessary," he says.

Under the Income Tax Act 2023, the National Board of Revenue (NBR) is empowered to demand taxes based on the current market value of unreported assets.

Efforts to address these issues are expected to discourage tax evasion and the illicit transfer of wealth abroad.

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