Use of fake e-Tins by cos, individuals detected

A number of taxpayers are using fake e-TINs or TINs of others in their bid to hoodwink the taxmen apparently to escape hassles and expenses associated with paying taxes, sources have said.
The National Board of Revenue (NBR) has identified such taxpayers, in the process of digging out the reasons for a drop in actual return submission and tax receipts of late.      
Evidences of use of fake e-TINs by a number of companies and individuals were found out through browsing documents they furnished with different entities to avail services, NBR officials said.
There are some 27 services that require mandatory submission of taxpayer-identification numbers (TINs).
However, tax officials said those fake e-TINs do not exist in the database of the NBR as all of the e-TINs have been issued after verifying national identity numbers of taxpayers.
The NBR recently formed a probe body to find ways of checking e-TIN faking and suggest punitive measures against those involved in such malpractice. The committee, comprising senior tax officials, is scheduled to submit its report by January 15.
The move has been taken to investigate the matter after the taxmen recently found over 718 fake e-TINs after scrutinising data of a business association.
They have detected that 450 used TINs of other taxpayers while the rest used "totally false numbers by preparing fake TIN certificates".
A senior NBR official said the fake TIN holders are members of Bangladesh Electrical Association who have furnished the numbers for election purpose.
The association has some 3,655 voters for election. And 20 per cent of them used false tax identities, the official said.
"Field-level tax offices have found existence of such fake e-TIN holders in different circles. It is a matter of concern for the taxmen as an objective of online TIN is to erase all fake and false TINs to narrow the gap of TIN-holders and tax returns," he said.  There are 3.8 million TIN-holders in the country. Of them, taxmen found valid addresses of some 1.7 million. The NBR launched new online TIN last year in a bid to remove the fake and duplicate TINs.
Some 1.3 million taxpayers have obtained TIN online. Of the taxpayers, some 300,000 are newly registered.
The NBR official said the TIN-verification system is necessary to identify the frauds using others' e-TIN or fake TIN.
Use of forged TIN is a punishable offence under the Income Tax Ordinance 1984.
Deputy Commissioners of taxes may impose a penalty up to Tk 20,000 for using fake TIN or TIN of another person. Also a person would face three years' imprisonment or fines up to Tk 50,000, or both, for continuous and deliberate use of fake e-TIN.
"It is unfortunate that none of fake TIN-holders has faced any penal action by taxmen so far.  There must be some exemplary punitive action to make others aware on use of false TIN," he said.
The NBR launched a move to empower relevant authority to accept TIN after verifying the number from NBR database. The issue of use of fake and duplicate TIN would be resolved after the launch of the TIN-verification system. The government also incorporated the measure into the Finance Bill 2014.
"Having received the certificated or acknowledgement receipt of return of income, as mentioned in subsection (1), the authority concerned shall verify the authenticity of the twelve-digit Taxpayer's Identification Number (TIN) as may be prescribed by the Board," the finance bill says.
There would be a verification module that will help the service-providing authorities, including banks, financial institutions, and land-and car-registration authorities, to find out false TIN-holders and refuse them services.
There will be 'valid' or 'invalid' sign on the verification site of the NBR after entering TIN.
Furnishing TIN is mandatory in 27 areas.
Those include opening letter of credit (LC) for import, renewal of trade licence and car registration or renewal of registration, submitting tender documents for supply of goods or any contract, application for membership of a club registered under the Companies Act 1994, registration for purchase of land, building or an apartment situated within any city corporation or any pauroshova of a district headquarters.
Deed value exceeding 0.1 million taka, sanction of loan exceeding Tk 0.5 million to a person by a commercial bank or leasing company, issuance of credit card, practicing licence to  doctor, a chartered accountant, a cost and management accountant, a lawyer or an income tax practitioner, giving ISD connection to any kind of telephone, being director of a company or sponsor shareholder of a company,  renewal of membership of any trade body, issuance of drug licence, submitting a plan for construction of building for obtaining approval from RAJUK, CDA, KDA, and RDA, application for gas and electricity connection for commercial purpose in a city corporation, pauroshova or cantonment board, submitting nomination form for any election in upazila, pauroshova, city corporation or parliament also call for submission of TIN certificate.
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