LTU intelligence wing sniffs out hidden taxes from state banks
Sunday, 2 August 2009
Doulot Akter Mala
A secret "intelligence wing" created at the revenue board has started paying off after it sniffed out Tk6.00 billion in hidden taxes from the country's four state-owned banks (SoBs), officials said Saturday.
The wing was set up at the Large Taxpayers Unit (LTU) of the income tax department to keep a close watch on the earnings and expenditure of bigwigs and top companies.
It maintains a secret databank of the LTU taxpayers including some big companies that accounted for 40 per cent of the income tax earned by the National Board of Revenue (NBR) last year.
"The wing manned by skilled income tax officers regularly updates the data on earnings, investment and expenditure of the large companies and big individual taxpayers," an official said.
"Everything is done secretly to prevent undue interference," he said.
Officials said the wing has so far found "stashed away" revenues of some companies who regularly show losses in their accounts to avoid the prying eyes of the taxmen.
In the financial year ended in June, the wing used comprehensive audit method to help collect an additional Tk 6.00 billion in revenues from the four SoBs -- Sonali, Janata, Agrani and Rupali.
The four banks had demanded tax refund from the NBR showing losses in their books during the last two fiscals.
"But the officers at the secret wing had a thorough check on their financial statements and found that the four banks should instead owe taxes to the NBR," the official said.
"We have opened all the files --- present and past--- of those banks and traced out the hidden taxes," he said.
The uncovering by the LTU's intelligence wing helped the income tax department surpass its revenue earning goal by Tk 3.45 billion in the 2008-9 although overall revenue collection missed the target.
The LTU, created in 2003, has also surpassed its revenue collection target by Tk 1.60 billion.
Officials said buoyed by the last fiscal year's success, the intelligence wing has stepped up its work this year in an effort to curb evasion and recoup additional taxes from the big shots.
The LTU has identified some vulnerable points of revenue leakages and has drawn up plan to plug these holes, he added.
Banks, financial institutions, insurance companies are the main taxpayers in the unit.
The government has set the LTU Tk 60 billion revenue earning target in the current fiscal year.
A secret "intelligence wing" created at the revenue board has started paying off after it sniffed out Tk6.00 billion in hidden taxes from the country's four state-owned banks (SoBs), officials said Saturday.
The wing was set up at the Large Taxpayers Unit (LTU) of the income tax department to keep a close watch on the earnings and expenditure of bigwigs and top companies.
It maintains a secret databank of the LTU taxpayers including some big companies that accounted for 40 per cent of the income tax earned by the National Board of Revenue (NBR) last year.
"The wing manned by skilled income tax officers regularly updates the data on earnings, investment and expenditure of the large companies and big individual taxpayers," an official said.
"Everything is done secretly to prevent undue interference," he said.
Officials said the wing has so far found "stashed away" revenues of some companies who regularly show losses in their accounts to avoid the prying eyes of the taxmen.
In the financial year ended in June, the wing used comprehensive audit method to help collect an additional Tk 6.00 billion in revenues from the four SoBs -- Sonali, Janata, Agrani and Rupali.
The four banks had demanded tax refund from the NBR showing losses in their books during the last two fiscals.
"But the officers at the secret wing had a thorough check on their financial statements and found that the four banks should instead owe taxes to the NBR," the official said.
"We have opened all the files --- present and past--- of those banks and traced out the hidden taxes," he said.
The uncovering by the LTU's intelligence wing helped the income tax department surpass its revenue earning goal by Tk 3.45 billion in the 2008-9 although overall revenue collection missed the target.
The LTU, created in 2003, has also surpassed its revenue collection target by Tk 1.60 billion.
Officials said buoyed by the last fiscal year's success, the intelligence wing has stepped up its work this year in an effort to curb evasion and recoup additional taxes from the big shots.
The LTU has identified some vulnerable points of revenue leakages and has drawn up plan to plug these holes, he added.
Banks, financial institutions, insurance companies are the main taxpayers in the unit.
The government has set the LTU Tk 60 billion revenue earning target in the current fiscal year.