NBR zooms in on homeowners abroad
Star Business Report
The National Board of Revenue is set to gather information on Bangladeshis who have bought properties abroad, its Chairman Md Ghulam Hussain said yesterday.
The decision was taken to check whether the individuals have paid an appropriate amount of taxes to the state coffers, Hussain said during a programme organised by Eastern Bank Ltd to unveil a pocket tax guide published by the bank.
He said there is nothing wrong with buying houses abroad, but the tax has to be paid if the money was sent from here to acquire the properties. Information on the properties owned by Bangladeshi nationals abroad will help the NBR realise taxes with penalty in case of non-payment.
The NBR is also examining ways to seek info from countries with which it has agreements on avoidance of double taxation. Bangladesh has such agreements with 33 countries. The tax authority may consider revisiting existing agreements if the current deals do not provide scope for exchange of information of Bangladeshi nationals investing in those countries.
Hussain’s remarks come following reports of siphoning off funds to foreign countries such as Malaysia, Canada, United Arab Emirates, Australia and the US through legal and illegal means to purchase properties. Malaysian government data shows 2,874 Bangladeshis had enrolled for the Malaysia My Second Home (MM2H) programme as of April this year, meaning at least Tk 3,506 crore was taken away from Bangladesh.
The capital flight is also reflected in the amounts deposited in Swiss banks. Deposits by Bangladeshi citizens at various Swiss banks rose 62 percent year-on-year in 2013 to Tk 3,236 crore, according to the data from the Swiss National Bank, the country’s central bank.
Over at the programme, Hussain and EBL Managing Director Ali Reza Iftekhar jointly unveiled the pocket tax guide. The mini-handbook incorporates important provisions of the Income Tax Ordinance 1984 as well as the latest changes.
It also provides information on tax computation, allowable investment, personal tax rates, rate of tax for vehicles and sample of tax return form.
