Tax intelligence has launched a drive to check tax-payment status of the private universities that have gone mushrooming during the last few years. Some of them already have been found delinquent.
The Central Intelligence Cell (CIC) under the National Board of Revenue brought some 10 private universities under its scanner recently on suspicion that they have concealed amounts of their actual incomes than the figures shown in their returns.
The CIC has already asked the commercial banks to furnish details of bank accounts held by the private universities.
A senior tax official said the CIC has made the move to scrutinise bank-account information of private universities being almost certain about their undisclosed incomes.
He said the tax-intelligence team has, meanwhile, realised unpaid tax along with penalty from some of the varsities while the rest are under process of passing through verification of their tax-payment status.
"Private universities usually collect all fees and other charges through banking channels. So, taxmen would be able to find out concealed income through bank search," he said.
Until 2010, the private universities that are providing technical education had been exempted from payment of income tax.
Later on, the NBR found out that all of the universities, irrespective of technical or general academic curricula, were availing the tax-waiver.
Following the trend, the government has slapped 15 per cent income tax, at a reduced rate, on annual income of all the private universities at a uniform rate.
Private universities, including the University of Asia Pacific, IUBAT, Northern University and Stamford University, are under watch of the tax intelligence.
Officials said the universities are enjoying a reduced rate of tax as they are registered under the 'Trust Act' or the 'Societies Registration Act'.
According to the University Grants Commission (UGC) of Bangladesh, there are some 80 private universities across the country. The government adopted 'The Private University Act' on July 18, 2010, with detailed guidelines on accounts keeping and other formalities.
The private universities have to keep all accounts details, incomes and expenditures of a financial year in prescribed form of the UGC. They have to submit financial statements duly audited by chartered accounting firms to the Ministry of Education and the UGC by December 31 of every fiscal year.
Talking to the FE Saturday, UGC secretary Dr Md Khaled said the private universities are usually registered under the 'Trust Act' or the 'Societies Registration Act' with a 'not for profit' spirit.
The private universities' incomes are supposed to roll on campus improvement or students' development, he added.
"It can be reviewed whether their income is taxable or not," he said.
Mr Khaled, however, suspects profit motive behind aggressive campaigning by some of the private universities for luring students.
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