Fake TIN use extensive in land transfer, credit card purchase
Tuesday, 23 December 2008
FE Report
More than 50 per cent of the fake tax identification numbers (TINs) have been obtained for the purpose of transferring land and getting credit cards, according to a sample survey conducted by the National Board of Revenue (NBR).
Scrutiny by the NBR has found that 493 candidates out of 1556 contesting in the ninth Jatiya Sangsad polls do not have TINs, said board chairman Muhammad Abdul Mazid while briefing the press Monday.
The NBR will serve notice up on these candidates asking them to clarify the matter, the NBR chairman said.
There is no provision to cancel candidature for not having TINs in the election commission rule. The NBR has requested the EC to address the issue from now on, as it is a matter of social concern, he said.
Mr. Mazid also expressed his deep concern over the rising number of fake TINs.
It has conducted the survey in the offices of the Bangladesh Road Transport Authority (BRTA), sub-registrar office and banks to detect the use of fake TINs certificates.
In the survey, the board has found 131 fake TINs out of 371 TIN holders in those offices. Among five major areas where submission of TIN certificates is mandatory, the NBR survey found 35.30 per cent fake TINs.
The sample survey detected 85 out of 168 TIN certificates used in land transfer as fake. Over 50 per cent of the TIN certificates used for obtaining credit cards were found to be forged, followed by 33 per cent in case of purchasing motor vehicles. About 4.0 per cent TINs used for securing bank loans above Tk 0.5 million and 2.38 per cent for opening letters of credits (L/Cs) were also forged ones.
The NBR has identified registration of land, purchase of motor vehicles and credit cards as more vulnerable to the use of fake TINs.
"Average rates of fake TINs in those areas are 46.04 per cent which is a matter of great concern for the revenue collectors," said NBR chairman.
The NBR chief expressed his fear that the board would find almost a similar picture in case of trade licence renewal by the city corporation and the other government and non-government organizations that offer various services.
Obtaining TIN certificates in some sectors has been made mandatory, as the government believes that those service seekers should have taxable income, he said.
But the system has been abused widely, depriving the government of a large amount of revenue, he added.
The NBR will take punitive measure against those fake TIN holders as per existing income tax law, the NBR chairman said.
"There is a provision for imprisonment, ranging between three months and three years, or imposition of fine or both in the income tax ordinance section 165 (a)."
The NBR has described the practice of submission of large number of fake TINs as 'alarming'. It held a meeting with the high officials of different government wings Monday to find out a solution in this regard.
In the meeting, the NBR discussed possible actions to thwart the practice with the help of the government offices concerned.
The NBR will sit with the relevant government agencies after every three months to review the situation, the NBR chairman said.
"The taxmen will carry out a sector-wise detailed survey to find out the actual number of fake TINs."
Presently, there are 2.2 million TINs. But only 0.67 million TIN holders submitted tax returns during the current tax year.
The NBR already requested the filed level officers, including the upazila nirbahi officers (UNOs) and upazila accounts officers, to send lists of potential taxpayers in their respective areas.
More than 50 per cent of the fake tax identification numbers (TINs) have been obtained for the purpose of transferring land and getting credit cards, according to a sample survey conducted by the National Board of Revenue (NBR).
Scrutiny by the NBR has found that 493 candidates out of 1556 contesting in the ninth Jatiya Sangsad polls do not have TINs, said board chairman Muhammad Abdul Mazid while briefing the press Monday.
The NBR will serve notice up on these candidates asking them to clarify the matter, the NBR chairman said.
There is no provision to cancel candidature for not having TINs in the election commission rule. The NBR has requested the EC to address the issue from now on, as it is a matter of social concern, he said.
Mr. Mazid also expressed his deep concern over the rising number of fake TINs.
It has conducted the survey in the offices of the Bangladesh Road Transport Authority (BRTA), sub-registrar office and banks to detect the use of fake TINs certificates.
In the survey, the board has found 131 fake TINs out of 371 TIN holders in those offices. Among five major areas where submission of TIN certificates is mandatory, the NBR survey found 35.30 per cent fake TINs.
The sample survey detected 85 out of 168 TIN certificates used in land transfer as fake. Over 50 per cent of the TIN certificates used for obtaining credit cards were found to be forged, followed by 33 per cent in case of purchasing motor vehicles. About 4.0 per cent TINs used for securing bank loans above Tk 0.5 million and 2.38 per cent for opening letters of credits (L/Cs) were also forged ones.
The NBR has identified registration of land, purchase of motor vehicles and credit cards as more vulnerable to the use of fake TINs.
"Average rates of fake TINs in those areas are 46.04 per cent which is a matter of great concern for the revenue collectors," said NBR chairman.
The NBR chief expressed his fear that the board would find almost a similar picture in case of trade licence renewal by the city corporation and the other government and non-government organizations that offer various services.
Obtaining TIN certificates in some sectors has been made mandatory, as the government believes that those service seekers should have taxable income, he said.
But the system has been abused widely, depriving the government of a large amount of revenue, he added.
The NBR will take punitive measure against those fake TIN holders as per existing income tax law, the NBR chairman said.
"There is a provision for imprisonment, ranging between three months and three years, or imposition of fine or both in the income tax ordinance section 165 (a)."
The NBR has described the practice of submission of large number of fake TINs as 'alarming'. It held a meeting with the high officials of different government wings Monday to find out a solution in this regard.
In the meeting, the NBR discussed possible actions to thwart the practice with the help of the government offices concerned.
The NBR will sit with the relevant government agencies after every three months to review the situation, the NBR chairman said.
"The taxmen will carry out a sector-wise detailed survey to find out the actual number of fake TINs."
Presently, there are 2.2 million TINs. But only 0.67 million TIN holders submitted tax returns during the current tax year.
The NBR already requested the filed level officers, including the upazila nirbahi officers (UNOs) and upazila accounts officers, to send lists of potential taxpayers in their respective areas.