Haque Specialized Group's News

A much-vaunted review of all the income-tax returns submitted in last fiscal detected only less than one per cent mathematical errors, but scared many of the taxpayers. Officials said taxmen rummaged through the tax returns of fiscal year 2016-17 under scrutiny-assessment provision of the income-tax ordinance. And they found 0.23 per cent or 2,983 tax returns until April 2017 with arithmetical and other types of errors out of total 12,71,595.   Since FY 2011-12, the number of erroneous tax returns has been less than 1.0 per cent of the total tax returns submitted under self-assessment system. However, the process of scrutiny of tax returns of 2016-17 may go on as the taxmen are allowed to conduct the review until June 30, 2018. In FY 2015-16, the National Board of Revenue (NBR) introduced the provision of scrutiny assessment of all tax files to find out any doctoring of the tax files. However, experts and former tax members found the provision creating panic among the taxpayers as they know their universal self-assessment of tax will be reviewed by the taxmen. Aminur Rahman, former income-tax-policy member of the NBR, said many of the marginal taxpayers may not feel comfortable after knowing that their universal self-assessment tax returns would go through a recheck. "There must be some relief or space for marginal taxpayers to encourage them to pay tax without fear," he added. The arithmetical errors include errors in addition of sectoral disclosed income, taxpayers' position, category, gender, age, residence status, minimum tax, investment rebate, house-property income and its expenditure, calculation in tax rebate, tax-rebate claim in gift and investment, surcharge for individual taxpayers etc. A senior tax official, however, said taxmen accept returns without question if taxpayers comply with some conditions and file tax returns under universal self-assessment. "There are allegations of misuse of the universal self-assessment scheme to evade tax and claim extra refund taking advantage of the provision," he said. Some tax officials said many other taxpayers make mathematical errors, either intentionally or mistakenly, in calculating the income tax. The provision of scrutiny assessment would help in minimizing the arithmetical errors, he added. In recently compiled statistics of the NBR, the number of erroneous tax returns was found coming down significantly in a year as people became more conscious over their tax returns and simplification of the return-filing process. In FY 2015-16, the taxmen found 6,606 tax returns with arithmetical and other types of fault out of 9,64,778 tax returns. Although the taxmen used to conduct 'return process' earlier, there was no provision in the income-tax law for 100 per cent review of the tax files. In the guidelines for scrutiny assessment, the NBR instructed field-level taxmen across the country to check only arithmetical errors in the tax returns filed under universal self-assessment system and not to call taxpayers for personal hearing under the return process. Earlier, the taxmen only used to audit universal self-assessment tax returns on sampling basis. Only 1.0 to 2.0 per cent of the tax returns would go through assessment process or auditing in the previous years. Income-tax officials said return process is different from auditing. It is just for checking arithmetical mistakes. There is no link of field audit activities with the return-process activity. The procedure of field audit should be followed if there is any element for field audit in a return. The NBR gave a specific time to the DCT for completing scrutiny assessment of all tax files under their respective tax zones. If any DCT failed to process the tax returns in the stipulated time, he or she will be held responsible for any revenue loss on this account. The last time for tax return (for tax year 2015-16) processing was June 30, 2017. The DCTs will inform the taxpayers on arithmetical errors and ask them to reply within a specific timeframe, the guidelines said. Taxpayers will be asked to pay due tax within 30 days of expiry of the given timeframe for reply, it said. However, if a taxpayer's reply is acceptable, then the return-scrutiny process will be done away with. According to the guidelines, the taxpayers must be allowed sufficient opportunities to furnish valid documents to defend their position regarding arithmetical errors detected by the DCTs. The guidelines also gave some directions to the DCTs to recover the revenue that was lost due to arithmetical mistakes in tax returns. doulot_akter@yahoo.com....

Published at: 2017-08-21 05:00:05

Prices of rawhide of sacrificial animals during Eid-ul-Azha this year will be equivalent to those of the last year despite a rising trend in its global prices. The price of cowhide (salted/non-salted) has been fixed at Tk 50-55 per square feet (sq ft) in Dhaka and Tk 40-45 per sq ft outside the capital during this Eid-ul-Azha. Goatskin (salted/salt-free) will sell at Tk 20-22 per sq ft across the country while she-goat's skin at Tk 15-17 per sq ft. Commerce minister Tofail Ahmed announced the rates at a meeting between the Ministry of Commerce (MoC) and tanners, leather and footwear makers held at the ministry on Sunday. The meeting was attended, among others, by secretary of the MoC Shubhashish Bose, senior officials of the ministry concerned and representatives from Bangladesh Tanners Association (BTA), Bangladesh Hide and Skin Merchants Association (BHSMA) and Bangladesh Finished Leather, Leather-goods and Footwear Exporters' Association (BFLLFEA). The procurement prices of per square feet rawhide of sacrificial animals (salted or non-slated) will be the same like the prices of last year as the country's leather industry is going through tough time, the commerce minister said. Necessary steps have been taken to stop smuggling of rawhide through border areas. In this connection, police and Border Guard Bangladesh (BGB) will take necessary actions so that hides cannot be smuggled out of the country, he said. Replying to a question, Mr Tofail Ahmed said buffalo skins will be selling as per the market prices. The government has decided to import 0.5 million tonnes of crude salt in an attempt to stabilise the local market. Besides, after Eid-ul-Azha, the second largest religious festival of the Muslims, a significant amount of salt will also be required for processing hide and skin of animals to be sacrificed, he added. The commerce minister directed the authorities concerned to take required steps so that transport of rawhide of sacrificial animals in the Dhaka city doesn't face any problem. There were 155 tanneries in the Hazaribagh area. Meanwhile, some 67 tanneries started operation at Savar on the outskirts of the capital city. Some more tanneries will start operation shortly, industries secretary Muhammad Abdullah said at the meeting. He expressed the hope that some 100 tanneries will start operation by this month. Presently, two Central Effluent Treatment Plants (CETPs) are operating in the Savar Tannery Estate. Besides, two more CETPs would start operating later, he said, adding that necessary steps have been taken in this regard. Gas connection would also be given as per the existing policy, he said.   Some 69 tanneries have started operation in Savar Tannery Estate. Of them, some 23 tanneries are operating fully and the rest partially, said General Secretary of BTA Md. Shakawat Ullah. He requested the minister to take necessary steps for resolving land registration issue in the estate. President of BFLLFEA Mohiuddin Ahmed Mahin requested the commerce minister to resolve the land price and CETP issues. There is a restriction on supply of rawhide from one place to another in Dhaka city, said Robiul Alam, secretary of Dhaka district leather traders association. He requested the commerce minister to take required steps to lift the restriction. BGB and police told the minister that they held separate meetings in this regard. They will take all necessary measures to prevent smuggling. rezamumu@gmail.com....

Published at: 2017-08-21 05:00:05

Overall shortfall in provision against both classified and unclassified loans in the country's banking system swelled over 13 per cent or by Tk 7.22 billion in the first half (H1) of this calendar year. By official count the provisioning shortfalls rose to Tk 61.92 billion as on June 30 from Tk 54.70 billion as on December 31, 2016. In the first quarter (Q1) of the ongoing calendar year, the banks ran Tk 52.32 billion short of the mandatory security funds they ought to maintain under the running banking law. Such amount was Tk 44.46 billion a year before. The banks ran short of the provisions following a portion of rescheduled credits having entered into non-performing territory along with conditional rescheduling of loans, according to officials. They also said some banks have maintained more provisions against their conditional rescheduling of loans. Meanwhile, a large amount of classified loans had been rescheduled with some conditions set by the Bangladesh Bank (BB) to minimise risks. "Such rescheduled loans were treated as unclassified, but the banks were asked to maintain provisions in accordance with previous status of the loans," a BB senior official told the FE Sunday while explaining the existing trend in provisioning shortfall. Only six banks out of 57 have failed to keep requisite provisions against loans, particularly classified ones, according to the official figures. Of them, three are state-owned commercial banks (SoCBs) and the rest private commercial banks (PCBs). The amount of provisioning shortfalls of three out of the six SoCBs rose to Tk 73.58 billion during the period under review from Tk 60.81 billion as on December 31 last. It was Tk 64.73 billion as on March 31, 2017. On the other hand, the total amount of non-performing loans (NPLs) with six state-owned SoCBs rose to Tk 345.81 billion on June 30 last from Tk 310.26 billion in the final quarter of last calendar year. It was Tk 357.16 billion in Q1 of this calendar year. The SoCBs are now in 'see-saw' position on their financial performances, another BB official said while explaining the current trends in the SoCBs' financial health.    Under the existing regulations, the banks have to keep 0.25 per cent to 5.0 per cent provisions against general-category loans, 20 per cent provision against substandard category, 50 per cent against doubtful loans and 100 per cent against bad or loss category. The banks normally keep required provisions against their unclassified and non-performing loans (NPLs) from their operating profits in a bid to mitigate any financial exigency, according to the central banker.  He also said the banks will have to maintain provisioning against all types of loans to protect the interests of their depositors. siddique.islam@gmail.com....

Published at: 2017-08-21 05:00:05

Five big global marine and inland terminal operators are queuing up for the contract to build Bangladesh's maiden specialised maritime terminal in Chittagong. A local company is also an aspirant for the terminal project to be implemented on public-private partnership (PPP) model at Laldiar Char, situated adjacent to the Karnaphuli river estuary. The Chittagong Port Authority (CPA) owns the Char. The international port operators submitted their request for qualifications (RfQ) in an open bidding that was closed Sunday. The CPA, which lacks specialised terminal to handle bulk cargoes, invited RfQs sometime in June this year. Among the operators who submitted their request for qualifications is Dubai-based DP World which has port-and logistics-related business in 40 countries. Adani Ports and Special Economic Zone Limited (APSEZ), India's largest private multiport operator, also submitted RfQ. Bolloré, a French transportation company headquartered in Puteaux, on the western outskirts of Paris, is another aspirant for the job. Beijing-based China Harbour and Engineering Co Ltd (CHEC), an engineering contractor and a subsidiary of China Communications Construction Company (CCCC) which built the New Mooring Container Terminal, just few kilometres from the Laldiar Char, some eight to nine years back, is also vying for the contract. Another global port giant in the race is Singapore-based Global port services. And local company Power Pac Limited also showed their interest. People familiar with the development at the PPP office told the FE that they just opened the RfQs on the last day on Sunday. Request for proposals will now be sought from five of the six operators. "We'll evaluate the RfQs shortly and seek five participants out of the six companies," said Md Abul Bashar, a director (investment promotion) at the PPP office in Dhaka. The terminal is expected to be built in an around two-and-a-half-kilometre area on the north bank of the Karnaphuli river. Chittagong International Airport is near the designated area. The Chittagong Port, operated by the CPA, is the main seaport of Bangladesh that handles more than 92 per cent of the total seaborne trade of the country in bulk and containerised forms. There has been a significant and sustained increase in cargo handling at the Chittagong Port, with the current growth averaging more than 10 per cent annually. A key constraint facing Chittagong Port is lack of any specialist terminal to handle bulk cargos. Currently, the bulk cargos are being handled at the existing container terminals. However, this is not seen as a viable long-term solution. The lack of dedicated equipment for bulk cargo, and strong growth of container and bulk cargo volumes are having an adverse impact on ships' waiting time and the overall performance of the port. PPP officials said that to cope with such increase in bulk-cargo volumes and improve upon port operation, the government has prioritised the establishment of a dedicated bulk-cargo-handling facility. "For this purpose, the government has primarily selected Laldiar Char as a strategically appropriate location for developing a bulk-cargo-handling terminal," the office said. The proposed site is on the right bank of Chittagong Port between Khal no 14 and 15. The site proposed is nearer to sea mouth and located downstream of the Gupta bend. The project profile says the main objective is to set up a dedicated terminal with specialist equipment to handle bulk cargo. "Enhancing capacity at Chittagong Port to deal with additional cargo volumes and meet future demand are also aimed at," it says. The profile also says the authorities also want to enhance operational performance at Chittagong Port and reduce ship-waiting time. The terms of reference include design, construct, operation and maintenance of Laldiar Bulk Cargo Terminal. jasimharoon@yahoo.com....

Published at: 2017-08-21 05:00:05

A young man was hacked to death allegedly by his friend over a trifling matter at Gurudaspur in Natore district town on Sunday night. The deceased, Ashiq, 25, was a resident of Chanchkoir area in the upazila, reports UNB. Quoting locals, police said Ashiq had a dispute with friend over distribution of money earned through drug business around 10:00 pm. Oli called his friend Ashiq to pay his share of money at night and hacked him mercilessly with sharp weapons and fled the scene, leaving him critically injured. Locals rescued Ashiq and took him to Upazila Health Complex where the doctors declared him dead.....

Published at: 2017-08-21 05:00:05