The National Board of Revenue (NBR) is set to allow private agents to prepare and submit tax returns, enjoying incentives, from July 1.
The agents, known as tax return preparers (TRPs), would enjoy incentives at a rate of 10 per cent on minimum tax collected with the tax returns, 2.0 per cent for the next Tk 15,000, 1.0 per cent for the next Tk 50,000, and 0.5 per cent for the rest amount.
These incentive rates would be applicable for the first three tax years.
For the fourth and fifth tax years, incentives would be 5.0 per cent for minimum tax, 1.0 per cent for next Tk 15,000 tax amount, 0.5 per cent for next Tk 50,000 tax amount, and 0.25 per cent for rest of the amount.
After fifth year, the TRPs would not get any incentives for preparation of tax returns, as the concept of TRP is meant for encouraging start-up taxpayers.
The NBR’s Income Tax Wing issued a rule in this regard on Sunday. The rule is a pre-publication, on which stakeholders would be able to give recommendations by June 25.
The NBR would pay the incentives on the declared income of the taxpayers in the tax returns prepared by the TRPs.
However, supporting organisations of the TRPs would get 10 per cent from the incentives as service charges to be received by TRPs.
As per the rule, yet to be made public, the NBR would be able to take legal actions, including filing criminal cases, if the TRPs fail to maintain privacy of the taxpayers’ information.
The TRPs would have to apply to the NBR for enlistment - directly or via companies or supporting organisations. The NBR would be able to cancel licence of an organisation, if it fails to appoint satisfactory level of TRPs or for any other specified reasons.
The NBR would also be able to cancel certificate of a TRP in case of any misconduct, failure in providing copy of system-generated tax returns or proof of tax return submission, financial crime, tempering amount of payable taxes, etc.
Tax at source, refundable tax, or tax paid after expiry of the deadline for tax return submission would not be considered for incentives.
The NBR would provide a unique identification number (UIN) to each of the TRPs and link him/her with an enlisted organisation.
The TRPs would not be able to represent the taxpayers as their representatives before the taxmen.
The TRPs would have to sit for tax aptitude and accounting test in case of not having recognised degree as a lawyer at Bangladesh Bar Council, or as a chartered accountant, cost and management accountant or chartered secretaries.
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