ICAB opposed to NBR clout on tax appellate tribunal

Chartered accountants recommended making the tax appellate tribunal 'free from control' of the revenue board to ensure proper tax collection.

"As the appellate tribunal members are appointed by the National Board of Revenue (NBR) generally from its incumbent and retired officials, they usually do not have the mentality of judicial independence," president of the Institute of Chartered Accountants of Bangladesh (ICAB) Masih Malik Chowdhury said.

He made the recommendation while reading out a written paper at a discussion on "Post Budget Scenario 2015," arranged by the ICAB at the National Press Club in the city Thursday.

Moderated by ICAB council member Md. Humayun Kabir, the discussion was also addressed, among others, by its past president Abbas Uddin Khan, vice president (E&T) A F Nesaruddin, vice president (T&R) Kamrul Abedin, past presidents Md. Abdus Salam and Md. Syful Islam.

"The tax appellate tribunal needs to be turned into a quasi-judicial one truly. The tribunal should be made (at least) free from control of NBR even if keeping it out of the board's purview is not possible," Mr Chowdhury said.

In this connection, the president suggested inclusion of representatives from the judiciary in the tribunal.

In a query, Mr Kabir said, "It is needed to make the appellate tribunal independent to ensure proper collection of revenue."

In his 11-point post-budget recommendation, Mr Chowdhury also emphasised on taking measures by the authorities concerned to check fake audit reports for facilitating the 30 per cent increase in revenue collection.

His other recommendations include 'not hiking' the tax at source from existing 10 per cent on different professionals, especially the chartered accountants. "They also have to pay 15 per cent value added tax (VAT)."

Lauding the increase in manpower at NBR, he also called for improving their working efficiency, accountability and transparency to successfully achieve the revenue target.

The ICAB president also opposed hiking the minimum income tax from Tk 3,000 to Tk 4,000.

 Opposing the recent changes, made by the standing committee in the provisions of proposed Financial Reporting Act (FRA), the discussants demanded reinstatement of the provisions as 'recommended by the cabinet'.

Mr Khan called for making the Monitoring and Evaluation Division (IMED) of the Planning Commission more active and vibrant to efficiently implement the annual development programme (ADP).

He also stressed the need for helping the farmers to market their products and thus get due price of their corps.

Mr Nesaruddin urged the government to reduce the corporate tax rate to 25 per cent comparing to that of other countries in order to attract foreign direct investment.

Mr Salam underscored the need for going to accrual-based accounting and strengthening the auditing in the public sector, and developing a cooperation between the public and private sector auditors in order to make ADP spening more wise and effective.

Mr Islam called for allocating more fund in the education sector and giving due attention to check the alleged 'transfer mispricing'.

Echoing other discussants, Mr Abedin appreciated the proposed provisions for punishment of unauthorised foreigners in the country.  

Criticising the legalisation of undisclosed money with payment of only 10 per cent higher tax, the discussants suggested increase in the rate to encourage legal income.

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