Penalty for non-compliance with provisions toughened

Doulot Akter Mala | Published: June 07, 2015 00:00:00 | Updated: November 30, 2024 06:01:00

Non-compliance with the provisions of income tax ordinance, including failure to file tax-returns despite having TIN, comes under a set of punitive actions stipulated in the Finance Bill 2015.
The Tax authority will have the power to penalise the holders of new taxpayer's identification number (TIN) by imposing a fine of Tk 5,000 for not submitting income-tax return at the year-end, as per the finance bill placed before parliament last Thursday. Â
Taxmen may also slap a penalty worth Tk 100,000 on the delinquent taxpayers in case of submission of false audit report with annual tax-returns, it says.
Currently, only chartered accountants are fined Tk 200,000 for providing doctored or incorrect audit report.Â Â
"Existing taxpayers would have to count penalty worth some 50 per cent of their last year's paid tax amount in addition to normal tax in case of their failure in submission of income- tax returns by the deadline," says the bill.
Under the existing provision, individual taxpayers, in some cases, are forced to pay higher amounts of penalty for failure in submission of tax returns.
Currently, taxmen can impose a penalty equivalent to 10 per cent of the tax amount of last year or Tk 1,000 for not submitting tax-returns within the given timeframe by individual taxpayers. Also, taxpayers have to pay a fine of Tk 50 for each day for the delay in submitting returns.
In the finance bill, rules on TIN verification also were toughened with a provision of Tk 50,000 penalty on some 25 service-providing agencies, including commercial banks, road-transport authority, gas, electricity and land registration offices.
The entities may have to pay the penalty in case of failure to verify the TINs furnished by the service-seekers.
Companies or firms may also have to pay penalty worth Tk 500,000 or 50 per cent of payable tax in case of recruitment of unauthorized foreign nationals.
Multinational or foreign companies will have to pay fines up to 2.0 per cent of the value of each international transaction in case of not submitting the statement of such transaction, according to a provision of the bill.
Â Â Â doulot_akter@yahoo.com