GP responds to ‘tax evasion’ reports

Chief Executive Officer (CEO) of Grameenphone (GP), Michael Foley, in a statement on Thursday said the company is committed to comply with the final resolution of court, although it has difference of opinions regarding the tax claim worth Tk 20.15 billion lying stuck in connection with the pending cases.
The amounts in the cases highlighted by the Large Taxpayers Unit (LTU) under Value Added Tax (VAT) Wing of National Board of Revenue (NBR) represent in aggregate 6.7 per cent of GP's total contribution to the government of Bangladesh over the last five years, the statement also said.
"Nevertheless these amounts are material, and we require a lawful resolution on the validity of the claims under dispute, as we have a deep responsibility to safeguard the interest of our shareholders."
GP sent the statement in response to the Thursday's media reports on tax evasion allegations against the company in an internal letter from LTU-VAT to Bangladesh Securities and Exchange Commission (BSEC).
In the letter, the revenue board has raised a claim of unpaid VAT and irregular tax exemptions amounting to Tk 20.15 billion.
LTU-VAT sent the letter to BSEC, requesting it to take necessary steps, so that GP keeps provision in its accounts on the pending tax claim.
"We continually assess every case individually and take relevant provisions in its books in full compliance with all international and local accounting standards, including, but not limited to, International Financial Reporting Standards (IFRS) and Bangladesh Financial Reporting Standards (BFRS)."
In such cases, the court of law is the proper forum to resolve these differences (of opinions), the statement further said.
"Grameenphone is the largest taxpayer in Bangladesh. Over the last five years we have paid Tk 300.40 billion in taxes and fees to the public exchequer."
"I have noted from the media that LTU-VAT has referred to certain cases to BSEC, and wish to reiterate that while the cases are pending before the different judicial forums, we continue to work with NBR, LTU-VAT and other relevant authorities to resolve these issues," the GP CEO said.
"I deeply respect and appreciate the hard work done by NBR and LTU-VAT, indeed they have an incredibly difficult task. Grameenphone is strongly committed to Bangladesh, and we strive to resolve these issues fairly and transparently," he added.

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