NBR won't ask questions about tax-paid undisclosed money

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FE Report
National Board of Revenue (NBR) chairman Badiur Rahman said Tuesday that the authorities would not ask question, in future, about the undisclosed money legalised through payment of tax by July 31.
The government has offered the opportunity for legalisation of the undisclosed income through payment of 5.0 per cent tax in addition to normal tax rate.
"I, on behalf of the board, assure the taxpayers that no action will be taken in future against those who will legalise the undisclosed income within the timeframe," Rahman said.
The NBR chief was addressing at a press conference on action plan of the countrywide survey, which is scheduled for a start tomorrow (Thursday).
He said there is no mention of black money in the income tax ordinance.
In line with the ordinance, all money will be considered as 'white money' and the taxmen can legalise the undisclosed money with payment of 5.0 per cent as penalty without a question being asked, he added.
Even, the board will support those taxpayers, facing any criminal cases, with respect to irregularities in payment of tax, Rahman said.
He made it clear that the government would not extend the time for legalising the undisclosed income.
After July 31, the government will take stern action against those undisclosed money holders, who failed to take the opportunity.
He said the board, so far, received tax worth Tk 86 million from the undisclosed money holders.
As per income tax law, there is a provision to impose 500 per cent penalty on the tax evaders on self-assessment while 250 per cent on normal category.
The board might enforce the law after the timeframe.
The NBR has the authority to file case against taxpayers.
The board will file three cases by this week against large tax evaders, the NBR chairman said.
After 31 July, the board will start scrutinising bank accounts and verify information collected against the tax evaders, who did not take the opportunity.
Asked about the target of achieving tax revenue in fiscal 2006-07, the NBR chairman said the board received Tk 370.19 billion in tax revenue, but the amount would rise after receiving all data from the divisional offices.
However, the revised target of fiscal 2006-07 was Tk 374.79 billion. The tax revenue target was set at Tk. 410.55 billion in the original budget in the year.
Meanwhile, the National Board of Revenue (NBR) will launch a countrywide survey beginning tomorrow (Thursday) in all city corporations of the country as well as in Rangpur municipality to net in new taxpayers, the NBR announced Tuesday.
Targeting businessmen and professionals, the board aims to bring some 164,000 new taxpayers under the tax net during the period of July-December this year.
The NBR aims to net in 72,000 new taxpayers in Dhaka city and 92,000 new taxpayers in other city corporations and Rangpur municipality during the period. Those new taxpayers will have to pay tax in the current fiscal.
A total of 48 teams with 104 tax inspectors will conduct the survey.
Presently, eight teams are surveying business establishments and other outlets of professionals in Dhaka city.
The NBR has assigned 20 teams, including the existing eight, to work in the Dhaka city. On the other hand, 11 teams will work in Chittagong, three in Rajshahi, five in Khulna, and three teams each in Barisal, Sylhet and Rangpur.
Under the survey launched in Dhaka city on March 29 last, the NBR has found 56 per cent new taxpayers.
The NBR found that 11,327 were new taxpayers out of 19,904 paying taxes until July 2.
Under the survey, the NBR has collected information of 705 professionals including physicians, teachers, lawyers and engineers.
Of those, some 458 are new taxpayers. The rate of new professional taxpayers is 65 per cent.
Speaking at a meeting while giving direction to the taxmen of the new survey, NBR chairman Badiur Rahman asked them not to harass those having the Taxpayer's Identification Numbers (TINs).
For encouraging the taxmen to behave politely while collecting tax, the government plans to offer different incentives and rewards for them, he said.
"The Finance adviser, in principle, agreed to allocate Tk 200 for each survey inspector," he said.
The government will also reward the taxmen collecting the highest amount of tax.
He said the taxmen should keep trying to cultivate a tax culture among the people without scaring them.
"We should ensure delivery of service, avoiding discrimination and cutting discretionary power of taxmen," he added.
The NBR chief said the government has cut the auditing power of taxmen in the current fiscal budget.
If a taxman finds any case of tax evasion, he has to submit necessary documents to the board for taking further action after proper scrutiny, he added.