The National Board of Revenue (NBR) after failing to get any response from the Bangladesh Cricket Control Board (BCB) has formed a 15-member committee to do the necessary spadework and collect income tax against the payments made to foreign players who participated in the recent Bangladesh Premier League (BPL) T-20 cricket tournament.
The BCB organised the tournament.
According to Section 56 of Income Tax Ordinance 1984, foreign players, artists or performers are required to pay 30 per cent tax at source on their fees. Franchises concerned were supposed to deduct the tax from the fees, and deposit it to the public exchequer.
Officials said BCB would have to pay the applicable tax in case of failure in tax payment by the relevant franchises.
The newly-formed committee, headed by income tax commissioner of tax zone-7 Sanjit Kumar Biswas, will collect details of the franchise companies of BPL 2015, and examine the agreements between the companies and the BPL committee or the BCB.
The amount of fees and payable tax under Section 56 will be assessed and fixed by the committee members.
It will collect information regarding paid fees to the foreign players from the Bangladesh Bank (BB).
The latest BPL T-20 was participated by six franchises of the country - Barisal Bulls, Chittagong Vikings, Comilla Victorians, Dhaka Dynamites, Rangpur Riders and Sylhet Super Stars. Players from different countries, including Pakistan, Sri Lanka, England, Zimbabwe and West Indies took part in the tournament.
Officials said NBR sent three letters, in phases, to the BCB, addressing its chief executive officer, for payment of tax at a rate of 30 per cent on the fees of the foreign players.
In a recent letter, the NBR requested the BCB to pay the tax by January 11, 2015 to the public exchequer.
The revenue board also requested the cricket board for paying the tax from the security money that the franchises deposited in its favour.
Officials said NBR is yet to get any response from BCB.
The committee members will discuss the tax payment issue with BCB and the franchises.
Franchises paid remunerations, ranging between $30,000 and $70,000 in foreign currency, to each of the foreign players.
Some 44 foreign performers from India and Sri Lanka also attended the BPL inauguration ceremony on November 20.
The revenue board received Tk 4.0 million in taxes on their honorariums, the officials added.
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