Bashundhara's out-of-court settlement bid rejected

The National Board of Revenue (NBR) didn't accept the appeal of Bashundhara Industrial Complex Ltd for negotiating their tax-evasion case outside court, as the company's owners have already been convicted while on the run abroad.

Official sources said the NBR in its 20th board meeting held yesterday with its chairman Dr Nasiruddin Ahmed in the chair stopped short of entertaining the company's plea.

The NBR sources said the meeting ended inconclusively without a decision regarding the Bashundhara issue, which was on top of the meeting agenda.

"We discussed the matter. It is too early to say anything about it. We have to scrutinise the matter further," the NBR chairman told UNB after the meeting.

A member of the NBR, who preferred not to be quoted by name, said that in the present situation the Board has nothing to do in this matter.

"A court already has given its verdict; we cannot do anything at the moment."

He noted that after the judgment there are three ways open for the convicted persons, including the company chief.

One is go to the higher court for appeal, accept the imprisonment or conviction given by the court or seek President's mercy under article 49 of the Constitution.

"There is no other way but these three," he said.

Regarding their decision to seek explanation of the section 170 of the Income Tax Ordinance 1984 from law ministry over the conundrum, he said that they were not sure about the explanation of this section of the tax law.

The section 170 says an NBR commissioner may, either before or after institution of any proceedings or prosecution for an offence punishable under this Chapter, compound such offences.

"We want to know the actual meaning of the word proceedings," he said.

On September 30, 2007, a special court sentenced Bashundhara Industrial Complex Ltd chairman Shah Alam and his family in absentia in the tax-evasion case for committing offences under sections 165 and 166 of the Income Tax Ordinance 1984.

The convicts were awarded five years' rigorous imprisonment for concealing information and three years' simple imprisonment for giving "false" information.

The special court also fined them Tk 8.3 crore and ordered confiscation of company property worth about Tk 22.5 crore as it was concealed in the wealth declaration submitted to the NBR--in the wake of a massive anti-graft drive following the 1/11 changeover.

As per the legal provision, the convicts, however, will have to serve five years' jail term as both the sentences run concurrently.

The NBR filed the case against them and the company in connection with evading payment of Tk 8.48 crore in income tax between the 2004 and 2007 fiscal years.

In the meantime, after the AL-led grand-alliance government assumed power, Bashundhara chairman Shah Alam and his family members urged the NBR to settle their case outside the judicial process.

The NBR in its 16th Board meeting had decided to seek the opinion of the law ministry under the section 170 of the Income Tax Ordinance 1984.

Then the NBR got clearance from the ministry of law to negotiate for disposal of one tax-evasion case against the directors of Bashundhara Industrial Complex Ltd, including its chairman Ahmed Abdus Sobhan alias Shah Alam.

As it has got the clearance, the NBR now can exercise its power under the section 170 of the Income Tax Ordinance to dispose of such compound offences, according to the ministry and NBR sources.

But the section 170 is silent about the commissioner's power to compound offences against a tax-dodger after his or her conviction and sentences by the trial court, prompting the NBR to seek legal opinion from the law ministry.

The members of the NBR and other officials concerned of the Board were present during the meet.