The National Board of Revenue (NBR) seeks 24/7 access to the accounting software of the companies and government entities paying large amounts of value-added tax (VAT), as they want to ensure transparency in revenue collection.
Large Taxpayer Unit of NBR (LTU-VAT) requested passwords and user IDs from 111 entities whose combined VAT collection is nearly more than TK50,000 crore. Banks informed NBR that they could not give their core software to them. Almost seventeen banks pay VAT in this office which is half of the total money collected by this sector.
According to one of the sources of NBR, the initiative was taken in order to ensure transparency and prevent irregularities in the entities’ accounts. According to NBR officials, some businesses maintain multiple accounts with the intention of evading VAT by showing low sales information. NBR officials found evidence of three cement companies evading VAT by providing false information. A criminal investigation has also been launched against the businesses for hiding information, and criminal charges are pending.
According to the order of LTU-VAt office, later disclosure of information about software usage other than NBR requirements will be regarded as an attempt to evade tax, and disciplinary action will be taken.
Four large VAT-paying companies Confirmed to NBR that the move might expose their business secrets. The Metropolitan Chamber of Commerce and Industry (MCCI), the country’s leading business organization, wrote to the LTU-VAT office on 11 August, calling such an order “immature” and saying it could put foreign investors off.
Mostafa Azad Chowdhury Babu, senior vice-president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) said that organizations’ confidential information could be hacked by such access.
In a directive on 3 August, the revenue authorities also warned that if they fail to provide the information within a week, action will be taken.
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