Verification module to detect use of false TIN in getting services

The National Board of Revenue (NBR) is set to introduce a verification module from July 1, 2014 to check fake Taxpayers Identification (TIN) holders obtaining services from public and private entities.
The module will help the service providing authorities, including banks, financial institutions, land and car registration authorities, to find out false TIN holders and refuse them services.
From July 1, the NBR would allow 12-digit TIN holders to obtain different services using the number. Old TIN holders will be deprived of the existing facilities and services from the next fiscal year.
The deadline for obtaining e-TIN, an online TIN service, is scheduled to expire on June 30, 2014. So far, some 1.2 million TIN holders obtained the fresh TINs through online.
A senior income tax official said the government has incorporated a law for inclusion of 12-digit TIN in the Finance Bill-2014.
"All of the fake TINs will be detected with the verification of TIN by different service providers," he said.
Fake TIN is a major concern of the tax administration as number of valid TINs are only 1.7 million out of 3.8 registered ones.
Service providers will get access to the verification module of NBR to check false TIN holders, he added.
There will be 'valid' or 'invalid' sign in the verification site of the NBR after entering TIN.
"Having received the certificated or acknowledgement receipt of return of income as mentioned in subsection (1), the concerned authority shall verify the authenticity of the twelve-digit Taxpayer's Identification Number (TIN) as may be prescribed by the Board," the bill said.
In the banks and financial institutions, taxpayers will have to furnish their 12-digint new e-TIN replacing old ones to enjoy 10 per cent tax at source rate on profits derived from bank deposits which is 15 per cent for depositors without TIN or have old 10-digit TIN.
Also, taxpayers will not be able to submit tax returns under universal self-assessment system with the old 10-digit TINs. They will be considered as general taxpayers and their tax files will be assessed or audited by the taxmen on mandatory basis, the tax official said.
In the Finance Bill-2014, the government has incorporated 'requirement of certificate or acknowledge receipt containing twelve-digit TIN of return of income' by specifying some certain cases.
There are some 27 areas where furnishing TIN is mandatory including opening letter of credit (L/C) 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 company act, 1994, registration for purchase of land, building or an apartment situated within any city corporation or any pauroshova of a district headquarter, deed value of which exceeds 0.1 million taka, sanction of loan exceeding Tk 0.5 million to a person by commercial bank or leasing company, issue of credit card, issue of practicing licence to  doctor, a chartered accountant, a cost and management accountant, a lawyers 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 upazilla, pauroshova, city corporation or Jatiyo Sangsad.
However, the government has waived the provision of mandatory submission of returns for the candidates of union parishad election in the budget proposal for fiscal year 2014-15.
Officials said majority of the candidates of the union parishad election used to submit nil returns due to not having any taxable income as it was mandatory to submit returns. The NBR scrapped the rules for reducing hassles.