People asked to disclose money to banks

People willing to bring back money home through availing the offshore tax amnesty will have to voluntarily declare the amount to the commercial banks concerned.
They will also have to request the banks to consider the repatriated money under the amnesty scheme and deduct 7.0 per cent tax, said an income tax 'Paripatra' issued on Wednesday.
The undisclosed money has to be declared in the returns of tax year 2022-23.
The government has offered the first of its kind money-whitening scheme in the current fiscal year. However, none have so far declared such money under the scheme.
The banks concerned will issue a certificate to the taxpayers stating the amount of paid tax and disclosed amount.
No other penalties would be applicable or imposed under the income tax law on the taxpayers availing the scheme. No authorities would be able to raise questions on the source of the disclosed money.
Any amount of cash or equivalent to cash, bank deposits, bank notes, bank accounts, convertible securities and financial instruments can be disclosed through banking channels under the scheme.
The scheme would not be applicable in case of any criminal cases or tax evasion cases or proceedings against any taxpayers taken within June 30, 2022.
The taxpayers will be able to submit amended or revised tax returns by June 2023 under the income tax ordinance.
According to the "Offshore Indirect Transfer Rules-2022", published with the Paripatra, the National Board of Revenue (NBR) has set a benchmark on triggering tax liability in Bangladesh by the people willing to bring back money availing the offshore tax amnesty.
In case of having a shareholder company in Bangladesh, the stake of a foreign company has to be more than Tk 150 million that represents at least 50 per cent of the value of the foreign company that directly holds the asset being shared in Bangladesh.
A diminimis rule has been set in this regard.
Aminur Rahman, former income tax member of the NBR, said the government needs to conduct an analysis and collect data prior to offering such a scheme.
He also expressed dissatisfaction that the remittance earners send their hard-earned money to Bangladesh while the well-off quarter siphons it off from the country.

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