• Monday, March 02, 2015

Days of fake TINs to go

NBR to make verification of TIN authenticity mandatory

Sohel Parvez

The revenue administration will tighten rules to prevent the use of fake taxpayer identification numbers from the next fiscal year.
Taxmen said the measure will plug loopholes and block tax evasion to bring more people under the tax net.
The National Board of Revenue plans to include a provision in the income tax law that will bind government agencies and private organisations such as banks and insurance companies to verify authenticity of TINs.
"This will reduce the use of fake TINs as well as tax evasion," an NBR official said, asking not to be named.
Currently, law mandates submission of TIN certificates at different government agencies, local government bodies, banks and insurance companies for various purposes.
However, the income tax law does not require the service providing agencies to verify the authenticity of the TIN certificates. As a result, people who want to dodge tax, submit fake TINs.
Taxmen said dishonest people have so far evaded taxes by submitting fake TINs in absence of the scope to check the authenticity of TINs online. Now, as the NBR opens online TIN registration, the scope to check the validity of TINs has widened.
So far, more than 12 lakh taxpayers have signed up for electronically generated TINs or e-TINs since the revenue authority introduced the portal in July last year.
The NBR official said the service providing agencies will be given access to the online TIN database from July.
"Many people submit fake TINs at banks to avoid payment of additional tax on interest earnings from their deposits. The practice will stop and we will get more revenue from this source," he said.
The NBR, in fiscal 2012-13, slapped 15 percent withholding tax or tax at source on interest earnings of depositors, who have more than Tk 1 lakh in savings, for the failure to submit TINs. But it kept the rate of source tax at 10 percent for depositors having TINs.
TIN certificates are needed for opening letters of credit, import registration, issuance and renewal of trade licences, submission of tender documents, registration of land and apartment, registration of vehicles and their fitness renewal, and sanction of loans exceeding Tk 5 lakh.
People also require submitting TIN certificates to get credit cards from banks, and to get registration of a company.
Doctors, chartered accountants, cost and management accountants, lawyers and income tax practitioners also have to submit TIN certificates to get practising licences.

TIN certificates are also needed to obtain drug licences and gas and electricity connections in city corporations and municipalities for commercial purposes.
"We have opened a service centre at BCS Tax Academy in Eskaton to help people open TINs online. The centre also assists taxpayers in case they face problems during registration or re-registration of TINs," the official said.

Published: 12:00 am Friday, May 23, 2014

Leave your comments | Comment Policy
ICC Cricket World Cup