NBR to realise undisputed taxes from frozen bank accounts

The tax authority has decided to realise the undisputed taxes from frozen bank accounts of around 20 top private universities as the institutions remained non-responsive to calls for paying the taxes during the last two months, sources said.
At present, nearly Tk 2.5 billion in taxes remained unpaid by some 22 universities and their bank accounts have been frozen by the taxmen since March 15, 2024.
After a February 27 court verdict, taxmen made the move to realise outstanding taxes with retrospective effect.
As per income tax act-2023, the taxmen are empowered to collect taxes from the frozen bank accounts of taxpayers in case of non-cooperation by the latter.

Income tax Member of the National Board of Revenue (NBR) Md Alamgir Hossain said the taxmen have no alternative but to realise the taxes directly from the bank accounts of private universities as the issue has been settled in the court.
"It's the duty of the taxmen to collect the undisputed taxes for public exchequer as per legal provision," he added.
Earlier, the Central Intelligence Cell (CIC) of the NBR also enforced the legal provisions in two cases to realise evaded taxes, he added,
In case of non-cooperation by the banks to pay the taxes on behalf of the taxpayers, the taxmen would hold the manager or top of the bank officials liable for defaulting taxes, he added.
On Thursday last, the tax zone-11 collected Tk 1.25 billion in taxes by encashing the fixed deposit receipt (FDR) of North South University, Tk 130 million from Independent University and Tk 100 million from East-west University.
Officials said they would serve notices to the banks today (Sunday) to unfreeze bank accounts of the NSU, East-West University and Independent University on the same day.
Taxmen have collected arrear taxes totaling Tk 1.48 billion from Mutual Trust Bank, Dhaka Bank and Bank Asia branches in Dhaka.
Sheikh Kabir Hossain, president of the Association of Private Universities of Bangladesh (APUB), however, termed it 'not a decent approach' and said: "We know it's the court's order and we have to comply with this. However, the taxmen could have discussed the issue with the association members before taking such steps."
Mr Kabir, however, said the tax on private universities, 15 per cent on annual income, should be withdrawn by amending the law as it contradicts the provision of the Trust Act.
He said the NBR has asked for taxes with retrospective effect which is burdensome for many of the private universities to clear within a short time.
The authorities concerned under the Taxes Zone-11 have frozen the bank accounts of 33 private universities in March last. Of the institutions, 11 have paid taxes partially or fully to unfreeze their accounts.
However, three universities again lodged a leave-to-appeal plea with the Appellate Division of the Supreme Court, which was also ruled out on Thursday last.
The NBR issued a gazette notification on 28 June 2007, imposing a 15-per cent income tax on private universities with effect from July 01, 2007, prompting a legal fight between the NBR and private universities that dragged on for 17 long years on behalf of their respective sides.