Business
137 people disclose income, pay Tk 8.65cr as tax: NBR
By UNB, Dhaka
Sun, 1 Jul 2007, 13:32:00

Some 137 people have availed of the opportunity to disclose their income until June 30 and paid tax of over Tk 8.5 crore under an amnesty the government offered to undisclosed money holders.

"The response is so far satisfactory… We're expecting more this month," a senior NBR official told UNB Sunday. The government had announced the amnesty on June 4 to make the black money white by paying the income tax and set the deadline July 31. "People are still taking time, but they may rush at the eleventh hour to avail the opportunity," said another official. He noticed that the undisclosed money holders were still unclear and inquiring whether there is any risk involved.

NBR chairman Badiur Rahman on Saturday assured that no risk is involved in declaring the unearned money and pays the tax. He said NBR officials would launch random investigation against the taxpayers disclosed untaxed income under the amnesty, but they are not entitled to file case without approval from the highest authority of the Board.

If the Board is satisfied that the evidence collected against a taxpayer through investigation, the Board would allow the officials to proceed with case, he added.

Under the amnesty, the tax-dodgers having Tax Identification Numbers (TINs) will be able to whiten their income of the last six years including 2006-07.

Tax-dodgers without having TINs will have to get TINs. An eligible assessee would be able to legalize their money by paying additional 5 percent tax as penalty with the normal tax base of that particular period.

People who are proved to have evaded tax and who are facing cases on tax-evasion charges would not be able to avail the opportunity. Earlier, successive governments had offered similar amnesty for the delinquents several times with the latest one in 2005-06 fiscal year, but that was for both the groups of tax-dodgers - those who earned honestly and dishonestly.

NBR sources said Tk 4,603 crore from a stash of such undisclosed money, popularly known as black money, was legalized taking advantage of pecuniary amnesty in the 2005-06 fiscal year at a tax rate of 7.5 per cent penalty.

Some 7,246 people-businessmen, doctors, lawyers and the like-availed of the opportunity to legalize the undisclosed money by paying Tk 345.225 crore to the national exchequer. In 2005-06 budget speech, the then Finance Minister, Saifur Rahman, had told Parliament that a good number of people were still holding the purse strings of such undisclosed income, who, for some reason or the other, could not avail of this opportunity. He had proposed extending the time limit of disclosure of this type of income without any explanation by paying only 7.5 percent income tax up to 30th June 2006.

The BNP-led alliance government first gave the similar chance in 2002-03 when Tk 1,000 crore came above board. Then they again gave the chance in the last fiscal year (2005-06). The first chance for legalization of the undisclosed money was given in 1976, then in 1988, 1989 and 1990. The amount of legalized money in 1976 was Tk 70 crore, in 1988 the amount was Tk 200 crore, in 1989 it was Tk 250 crore while in 1990 the amount was Tk 400 crore.



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