National Board of Revenue (NBR) requested Wednesday the securities regulator to ask Grameenphone (GP) for making provisions for Tk 20.15 billion in its accounts so that the listed company could pay the amount if it loses ongoing legal battles over the VAT claims.
The disputes over the Value Added Tax (VAT) involve as many as eight cases between the NBR and the GP in the tribunal, High Court Division and Appellate Division.
Md Matiur Rahman, Commissioner of the Large Taxpayers Unit (LTU) under the Value Added Tax (VAT) wing of the NBR, sent a letter to the chairman of Bangladesh Securities and Exchange Commission (BSEC) M Khairul Hossain, requesting to take legal steps in this regard.
Despite the long-pending cases, few of the verdicts by lower court so far went in favour of the NBR, the largest mobile phone operator made no provision against the NBR-claimed VAT.
The disputes are over SIM replacement tax, VAT on rent on space and establishments, Vat and Supplementary Duty (SD) on SIM cards and unlawfully-obtained VAT rebate.
"We have not received any communication and can only comment after we have seen it and have had time to assess the allegations," Sayed Talat Kamal, GP head of external communications, told the FE Wednesday.
Officials said that as a listed company, the GP has to maintain provision for the amounts in its accounts against the disputed amount of VAT.
"It will be difficult for the company to pay the revenue to the government exchequer if the verdicts go in favour of the government," the letter reads.
It also portrayed a detail scenario with updates of the disputes relating to the outstanding VAT in different heads.
Of the amount, the highest amount of VAT worth Tk 10.23 billion was involved with the cases of SIM replacement tax. The cases are now pending with the appeal jurisdiction of the High Court (HC).
Earlier, the LTU got verdict in its favour from the writ jurisdiction of the HC and VAT Appellate Tribunal of the NBR in the case.
Also, a primary demand notice for payment of Tk 3.78 billion as SIM replacement tax has been issued by the LTU.
Three different cases involving Tk 364.2 million on rent for space and establishments also remained under trial in the courts.
There is another pending case over interests worth Tk 4.52 billion on delayed payment of VAT and SD on SIM cards in the VAT Tribunal.
The LTU also claimed that the operator obtained VAT rebate worth Tk 1.24 billion unlawfully, which is under trial in the HC and the Appellate tribunal.
LTU officials said GP, as a listed company, was supposed to maintain provision in its accounts against the amount and not declare the amount as profit.
The company might also have to pay same amount as delayed interest if they lose the legal battle. Interest of shareholders is also involved with the issue, he added.
GP offloaded its 10 per cent shares in the stock market of Bangladesh.
doulot_akter@yahoo.com
