Taxmen freezing private varsities' bank accounts to realise arrears

Taxmen are freezing tax-defaulter private universities' bank accounts in a clampdown to realise long-overdue taxes that came to Tk 8.31 billion, sources said.
And the drastic move launched by the National Board of Revenue (NBR) began paying off for the public exchequer with forced payment of the taxes.
The revenue board has realised Tk 250 million in back taxes in the last seven days from some of them through suspension of their bank transactions, said officials in the government's revenue administration.
Under the ongoing drive the tax authority had frozen bank accounts of some 44 universities across the country a week ago to realise dues pending since the 2011-12 fiscal year.
Still bank accounts of 31 of the default universities remained blocked.
Following the move, the private universities have started responding and paying the dues to the exchequer.
Such cracking action by the NBR came following a recent order of the Appellate Division of the Supreme Court on tax payment by private universities at a rate of 15 per cent.
A total of 52 private universities are under the scanner of tax-zone 11.
Of them, North South University has an unpaid amount of taxes worth Tk 1.80 billion, pending since 2017-18.
A senior tax official has said the bank account of NSU remained frozen as the university authorities have yet to pay any amount out of its dues.
However, he said, bank accounts of 11 universities have been unfrozen after they had paid part of their dues.
The tax authorities' steps have prompted other private universities to rush to the NBR and clear dues to make their bank accounts free from freezing.
The official, however, said the tax zone sent soft reminders to all 52 universities after the verdict of the Appellate Division but many did not respond to the letter.
"We haven't frozen the bank accounts of Brac University as they responded with documents on our reminder," he says.
However, Brac University has pending dues worth Tk 946 million, the second-highest after NSU.
Bank accounts of BUBT, Green University and Millennial University have been freed after they paid a part of their taxes.
The BUBT authorities have paid Tk 3.7 million, Green University Tk 5.0 million, Millennial University Tk 0.4 million, Daffodil University Tk 50 million, East West University Tk 280 million, World University Tk 65 million, and Northern University Tk 50 million.
"We launched the move to make private universities tax-compliant, not to create barriers on their operation," the tax official told this correspondent.
Ahsanullah University has dues worth Tk 29 million.
Talking to the FE, Md Alamgir Hossain, income-tax member, said the taxmen launched the move to realise undisputed arrears to the public exchequer.
Government's tax demand has accumulated during the last 15 years.
Taxmen have said most private universities submit tax returns every year and pay taxes on their legal expenses only.
The government allows private universities to enjoy a concessionary tax rate of 15 per cent, instead of the regular rate of 27.5 per cent, considering the priority of educational institutions, they added.
Professor Atiqul Islam, Vice-chancellor of North South University, however, calls their tax issue a subjudice matter.
"So far our lawyer has said, the issue has not been settled yet as the NSU has yet to get copies of the verdict from Appellate Division," he adds.

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