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Mandatory TIN certificate display

Most services firms non-compliant

Doulot Akter Mala | October 01, 2017 00:00:00


A spot survey finds some 90 per cent service-providing businesses non- compliant with the legal requirement for mandatory display of TIN certificates in front of their premises.

And around 10 to 15 per cent of the businesses run without obtaining TIN (Taxpayer Identification Number) although it is compulsory for business operations.

During the special survey on the city hotels, restaurants, fast-food shops, guesthouses and beauty parlours, the income-tax authorities also discovered a significant number of businesses operating sans tax files.

The survey officials said majority of the businesses are unaware of the legal obligation for displaying TIN certificates at visible places on their premises. There are some businesses that have TIN or tax files which are scattered in different tax zones.

The tax-men recently intensified their effort to ensure compliance, provide e-TIN and make businesses tax-compliant through motivation as part of government move to raise the number of taxpayers.

Income-tax zone-7 is authorized to supervise and monitor all of the taxpayers' in the city's hotels, restaurants, fast-food shops, guesthouses and beauty parlours.

The special field study, meant for pulling onto the net potential new taxpayers and augmenting revenues to finance an upraised national budget, started in September and is scheduled to continue until October 30, 2017.

A.J.M Ziaul Huq, tax commissioner of the tax zone-7, said the revenue board is set to extend the timeline after the taxmen found a significant outcome of the field inspections.

"We are carrying out the survey with the presence of the respective business leaders of those service-providing organizations to ensure their partnership in the activity," he said.

The focus of the taxmen is to motivate the businesses and make them aware about displaying TIN certificates, obtaining e-TIN and submission of tax returns, he said.

The survey is currently on stream in Dhanmondi area, he said.

There is a provision of penal tax if businesses do not display TIN certificates on their premises.

Officials estimated that around 40 per of the city's hotels, restaurants, fast-food shops, guesthouses and beauty parlours do not have tax files. There are some 7,000 such business organisations in the city.

The survey is part of its countrywide Income Tax Survey 2016.

"We will be able to develop a database and bring all of those service organizations under one roof after the survey," Mr Huq said.

He assured that there would be no harassment during the drive as representatives from the business organisations are accompanying the survey team, he added.

The surveyors are issuing e-TINs, either instantly or later after examining the collected information, and collecting tax from the businesses found eligible. This survey is different from spot assessment where taxmen bring small businesses and professionals under tax net.

The tax zone-7 has already issued public notices informing the entrepreneurs about the survey and asking them to display the e-TIN certificates, if they have, at a noticeable place of the business premises during the survey period.

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