Undisclosed money holders start putting faith in NBR

---

FE Report
Undisclosed money holders have started coming from behind as their response to the offer of the National Board of Revenue (NBR) on legalisation of their money is gradually increasing.
During the first five days of the new fiscal until Thursday, the board received Tk 102 million (10.20 crore) from the undisclosed money holders in the forms of both tax and penalty.
The amount of taxes and penalties was paid by individuals in response to the government's recent offer on legalisation of untaxed money, earned through fair means, by July 31 next.
On June 4 last, the NBR issued a statutory regulatory order (SRO) offering the facility to legalise undisclosed income until July 31 next by paying 5.0 per cent penal charge in addition to the normal rate of tax.
Such increased response proves the fact that the government has been able to successfully convince the undisclosed money holders to come under the tax net without any fear, an NBR source said.
Recently, the NBR chief also gave assurance that the authorities would not ask any question, in future, about the undisclosed money legalised through payment of tax by July 31 next.
Until the last day of the fiscal 2006-07, the board received income taxes worth only Tk 86.6 million (8.66 crore) from 141 undisclosed money holders across the country.
But during the last five days the board received good response as well as queries from the undisclosed money holders, seeking assistance and suggestions to legalise their money, sources said.
In the fiscal 2006-07, some people were busy investing in purchase of properties and vehicles to exploit the opportunity offered for legalising their undisclosed money.
But the provision, offered in the last fiscal, ceased to exist in the fiscal 2007-08.
Now, the undisclosed money holders have the only way to legalise their money with payment of 5.0 per cent penalty in addition to the normal rate of tax.
The board has always been reiterating its call to take the opportunity, as the government plans to take stern action against those, who will miss it.
The government might levy 500 per cent penalty on the taxpayer under self-assessment and 250 per cent on normal taxpayers after expiry of the given timeframe, sources said.
Initially, the government received poor response from the undisclosed money holders. The NBR received taxes worth only Tk 5.4 million from 13 individuals until June 22 last.
Meanwhile, in another development, the NBR has asked the commercial banks and non-banking financial institutions (NBFIs) to provide information about accounts of 55 individuals and nine establishments by July 12 next.
The central intelligence cell (CIC) of the NBR has issued a letter to the banks and NBFIs asking the managing directors for taking necessary measure in this connection, official sources said.
The CIC asked the banks and NBFIs to provide updated information about current and savings accounts and credit cards of the persons since July 01, 2001, the sources added.
The individuals include Abdul Awal Mintoo, his wife Nasrin Fatema Awal and their three sons, former Awami League MP Nur-e-Alam Chowdhury Liton, his wife Zinat Parvin Chowdhury (Eva Chowdhury) and their four children, Mayor of Barisal City Corporation Majibur Rahman Sarwar, his wife Sayeda Nasima Sarwar and their four children.
Nine establishments are Superior Builders & Engineers Ltd., Titas Engineering Enterprises Ltd., Em Power Ltd., Superior Technologies Ltd., Mum Power Transformer Ltd., Mum Power Generation Co. Ltd., Mum Power Cables & Wears Ltd., Superior Advertising Company Ltd., and Debiddar Pharmaceuticals Ltd.
Most of the banks have already started collecting information of the individuals and establishments to send the report to the NBR within the stipulated time, sources said.
Earlier, the central bank asked the banks and NBFIs to cooperate with the law enforcing agencies through providing information about the transactions by corruption suspects.