Large taxpayers complain of harassment by taxmen

Large taxpayers yesterday accused taxmen of harassment during inspections of companies. Top executives of some banks and financial institutions made the allegations in front of Md Mosharraf Hossain Bhuiyan, chairman of the National Board of Revenue (NBR), at a discussion.

The Large Taxpayers Unit (LTU) of the revenue administration organised the discussion ahead of the budget for the next fiscal year, to be announced in June. The unit has launched a gallery on their premises containing names of large taxpayers in honour of their contribution.

Selim RF Hussain, managing director of Brac Bank, said often tax inspectors refuse to allow expenditure vouchers without any valid reason. He sought the intervention of the NBR chief in this regard.

Syed Hammadul Karim, general manager of Metlife Bangladesh, said sometimes taxpayers are compelled to go to court to settle tax disputes. It would be good for all if disputes could be settled before going to court, he said. LTU Commissioner Apurba Kanti Das said the LTU was formed to ease the hassles faced by the large taxpayers and simplify collections. But there has not been a company that has not filed an appeal against the tax demand, he said.

Das suggested taxpayers settle disputes through alternative dispute resolution, an out of court process.

He said taxmen have been asked not to disallow the claimed expenses of taxpayers arbitrarily.

“Tax environment has to be improved and a taxpayer-friendly environment will bring an increased amount of revenue,” he said.

Naser Ezaz Bijoy, CEO of Standard Chartered Bangladesh, suggested that the tax authority frame a roadmap to rationalise tax rates and expand the tax net rather than imposing the tax burden on the existing taxpayers.

NBR Chairman Bhuiyan said big taxpayers sometimes show losses on their tax returns even after doing good business. “This has to be stopped.”

He said the revenue board would examine the files of taxpayers in case of any doubt.

IDLC CEO Arif Khan said it was important to develop a bond market for the advancement of the economy.

The zero-coupon bond was floated and banks got a tax benefit for their investment in the bond. But the benefit discontinued just after two years, he said.