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In one case of undercover tax evasion, the national revenue authority has detected a businessman having brought from abroad Tk 7.30 billion in the guise of remittance.
Under a provision of the Income Tax Act 2023, expatriates are exempt from payment of taxes on their home-bound remittances.
Additionally, if the money is sent through official banking channels, a 2.5-percent cash incentive is provided from state exchequer as bets for remittance --a major source of much-needed foreign-exchange earning for Bangladesh.
Chairman of the National Board of Revenue (NBR) Abdur Rahman Khan said Monday the man brought the money from China as 'consultancy fees'.
At an opinion-exchange meeting with Economic Reporters Forum (ERF) members, the NBR chief said this case showed "persistent massive tax evasion" in Bangladesh.
He sought cooperation of the media in checking such bloating tax- dodging.
The BCS Taxation Association organised the discussion, titled 'Economic Discussion: Revenue Management and the Media', on the NBR premises.
The NBR chairman attended the meeting as chief guest while Member, Tax Administration, GM Kaikobad, BCS Taxation Association president Motasim Billah Faruqui and Secretary- General Syed Mohidul Hasan and ERF president Doulot Akter Mala were special guests.
Large Taxpayers Unit (LTU) Commissioner Iktiar Uddin Mamun presented the keynote.
Officials are struggling to reconcile the financial records. Since the tax-recovery process is still ongoing, the NBR chairman refrained from disclosing the accused individual's identity.
At the programme, the NBR chairman emphasized the need for stricter measures to prevent tax evasion. He also announced initiatives to reintroduce wealth tax to reduce economic inequality.
"The reason the Gini coefficient (which measures income inequality) is moving in the wrong direction is due to such instances. Either, we failed to find out them, or deliberately ignored them," said the new revenue-board chief.
On detection of remittance, the NBR officials believe it is unlikely that an individual could legally amass such a large sum abroad.
Taxmen suspect that this is an attempt at legalizing laundered money with income-tax benefits.
"We suspect that this money was originally smuggled out of the country. However, the relevant department will determine the truth after conducting a thorough investigation," says one tax official.
At the meeting, the NBR chairman stressed integrating bank- account information with the NBR to ensure proper tax deductions on deposited funds.
He also discussed the need for interoperability with CDBL information.
Mr GM Kaikobad said the NBR was in a process of strengthening its intelligence wings through deploying manpower.
Mr Motasim Billah said the partnership with the ERF is vital for bridging the gap between taxmen and taxpayers.
Strengthening tie-up with the stakeholders for sustainable policy decision was stressed by Mr Mohidul.
Mr Ikhtiar Uddin Mamun presented details highlighting challenges on tax collection and ways out to increase country's tax-to-GDP ratio.
Economic Reporters Forum (ERF) President Doulot Akter Mala stressed data availability for quality report on revenue issues, increased media engagement with ERF members and introducing NBR-ERF Best Reporting Awards.
doulotakter11@gmail.com