Call for TIN verification gets poor response

A rule of the National Board of Revenue to verify taxpayer identification numbers (TINs) has received a lukewarm response from various public and private agencies.

Only a handful of banks and financial institutions, like Standard Chartered, HSBC and Uttara Bank, have so far responded to the call and got access to the tax administrator's electronic database for TIN authentication, an NBR official said yesterday.

However, many others like Bangladesh Road Transport Authority, land registration offices, city corporations and municipalities are yet to apply to the NBR to get access to the e-TIN database, the official said.

"We request the service providing agencies to check authenticity of the TINs. They can do so by applying for an ID to access the e-TIN database. If anyone avoids checking the validity and the TIN is found fake later, we will take action as per law."

In April this year, the tax administrator made it mandatory for the agencies to verify the electronically generated TINs prior to providing 24 types of services such as land and apartment registration, vehicle registration and renewal, and trade licence renewal.

In a notice, the NBR also asked authorities not to provide services if the TINs submitted by people are found fake. The agencies were directed to inform the NBR about the submission of such fake TINs with detailed information.

The tax authority slapped the rule to rein in tax evasion and bring more people under the tax net.

Earlier, service providers were not bound to verify the TIN certificates submitted by their customers, which taxmen say, had created scope for tax dodging. Dishonest people evaded taxes by submitting fake TINs, in absence of the means to check authenticity of TINs online.

Taxmen said many people submit fake TINs at banks to avoid paying additional taxes on interest earnings from their deposits. They also believe that a section of people submit fake TINs for land registration, vehicle registration and renewals.

The NBR official said they received nearly 120 applications, mainly from banks. However, all were not given access to the e-TIN database for an absence of adequate documents.

"We are advertising in the media to create awareness about using valid TINs."

More than 17 lakh taxpayers signed up so far for e-TINs since the revenue authority introduced the portal in July 2013. The law permits the tax authority to fine Tk 50,000, along with three months' imprisonment, for the use of fake TINs.

When contacted, Md Nurul Islam, BRTA director (engineering), said his office now receives TIN certificates and records the number. "But we are yet to start verifying TINs."

Md Moshiar Rahman, BRTA director (administration), said the BRTA and NBR are in the process of signing a deal soon so that both the offices can access each other's databases.