NBR may scrap existing provision

Al Amin :
The National Board of Revenue (NBR) is likely to scrap the existing provision of amnesty for bringing back laundered money in the next budget as the tax waiver facility did not bring any fruit so far.

NBR official sources said that the revenue board sent letters to tax zones last month asking whether anybody has brought back the laundered money by taking the amnesty facility. But, no zones have responded the letter.

Following this, the tax authority feels that no one has taken the facility and decided not to continue the provision in the next fiscal year, although the decision is depending on prime minister.

The government incorporated a clause ’19F’in the Income Tax Ordinance through the Finance Bill in the last budget to give amnesty for the Bangladeshis in order to bring back laundered money.

Although, the economists and most business bodies including the FBCCI criticised the decision saying the provision is unethical and will further encourage money launderers.

In the provision, the government offered Bangladeshis a scope for legalising their unreported assets outside the country without facing any question in the current fiscal year, subject to paying taxes ranging from only 7 per cent to 15 per cent.

The government, however, backed the offshore tax amnesty provision claiming that it would help to lure back the money syphoned off the country.

Undisclosed assets holders were allowed to show any of their immovable assets outside Bangladesh in tax returns by paying a 15 per cent tax.

In the case of legalising any movable assets, including cash, bank accounts, securities and financial instruments without repatriation to Bangladesh, they will have to pay a 10 per cent tax, according to the provision.

Besides, any cash, bank deposits, bank notes, bank accounts, convertible securities and financial instruments, if repatriated to Bangladesh, taxed at a rate of 7 per cent. The tax amnesty allowed owners of such assets and cash to get into tax compliance and avoid fines, penalties and criminal charges.

From 2009 to 2018, Bangladesh is estimated to have lost an average of $8.27 billion annually through “trade misinvoicing,” according to a report published recently by U.S.-based watchdog Global Financial Integrity.

Besides, an average of Tk 73,000 crore has been laundered every year and the name of Bangladesh is in the list of top 30 countries in the world for money laundering.

Some 17 countries, such as Australia, Germany, Belgium, Italy, Spain, Indonesia and Pakistan, are offering offshore tax amnesty to bring back unreported assets held abroad in tax havens and secret bank accounts.