Tougher actions against untaxed money holders likely after July 31

FE Team | Published: June 18, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

S M Jahangir
The government might go for tougher actions, including confiscation of assets, against those who will not avail themselves of the opportunity to legalise undisclosed income within the given timeframe.
"Tougher actions await the persons, who will fail to legalise their untaxed money by paying due tax within the stipulated time limit," an official source said.
The National Board of Revenue (NBR) issued a statutory regulatory order (SRO) on June 5 last, giving the facility to legalise undisclosed income until July 31 next by paying 5.0 per cent penal tax in addition to normal rate of tax.
Under the facility, anyone who had failed to disclose certain part of his/ her income made through fair means in the tax return in a particular year will be allowed to legalise the same.
The NBR in the SRO had also made it clear that such opportunity would not be applicable in case of income made through illegal means.
However, the revenue authority is yet to get any major response to this effect. Only six persons availed themselves of the opportunity until Sunday, officials said.
It was able to realise revenue worth Tk 224,000 from them through legalising their undisclosed money, they motioned, without elaborating details about how much money was legalised.
Of the total amount, the NBR received Tk 160,000 as tax from four persons under its Dhaka Tax Zone-2.
On the other hand, a person legalised undisclosed money through the Chittagong Tax Zone-1 by paying tax amounting to Tk 64,135 while the NBR received Tk 43,000 as tax from a person residing in Chandpur.
Terming the present response 'unsatisfactory', an official source said a large number of people are expected to rush the NBR in the days ahead for taking such advantage.
The official further said many people are making queries about the facility.
Responding to a query, the official said the NBR will launch a special drive to dig out the undisclosed income after the expiry of the timeframe.
The government has offered the incentive under section 44(4) (B) of the existing income tax ordinance to facilitate entry of huge undisclosed but legally earned money into the formal economy.
This opportunity will be applicable for undisclosed income of TIN (tax identification number) holders for the last five financial years.
The NBR announced the offer just a couple of days before presentation of the national budget for the fiscal year 2007-08.
The immediate past BNP-led alliance government offered black money holders an opportunity to whiten their money by paying only 7.5 per cent tax.
Besides, it has been proposed in the new budget to abolish the provision for investment of undisclosed money in real estate and cars paying specific rates of taxes.
The opportunity to whiten black money was offered six times in last 35 years with the facility being introduced first time in the fiscal 1975-76 through a Martial Law Regulation.
Black money worth of about Tk 46 billion was whitened in the fiscal year 2005-06 alone.