Company taxpayers must provide detailed business info in returns

Jasim Uddin | Published: 00:00, Jul 11,2019

 
 

A file photo shows Banglalink headquarters in Dhaka. The National Board of Revenue has introduced a new income tax returns form for company taxpayers, making it mandatory for the taxpayers to provide with the tax authorities detailed information about their business from the current fiscal year of 2019-2020.— New Age photo

The National Board of Revenue has introduced a new income tax returns form for company taxpayers, making it mandatory for the taxpayers to provide with the tax authorities detailed information about their business from the current fiscal year of 2019-2020.
The new form invalidates all other forms for the purpose.
Corporate taxpayers, particularly multinational companies, will mandatorily have to make a declaration about their international transactions with their associate companies in the new returns form.
Income tax wing of the NBR on Wednesday issued an instruction on submission of income tax returns in FY 2019-20 by corporate taxpayers in this connection.
According to the instruction signed by NBR second secretary (tax law-2) Mohd Mazharul Haque Bhuyan, the income tax authority in 2016 introduced the new income tax returns form (IT-11GHA2016) for company taxpayers.
The NBR in the budget for the current fiscal year amended the form and incorporated the provision of making declaration by the MNCs about their international transactions.
‘Company taxpayers will be able to file income tax returns using the new form and all other forms will not have effectiveness from now on,’ said the instruction.
The NBR asked all its income tax commissioners in 31 tax zones across the country to take necessary steps in this regard.
Income tax officials said that previous income tax returns were brief and taxpayers would enclose the audit reports with the returns.
There were no options for providing many of required information including tax benefits and international transactions with associate companies, they said.
The NBR addressed the issues and incorporated provisions for providing the information, they added.
Corporate taxpayers will have to provide basic information from audit reports in the new form.
A senior NBR official on Wednesday told New Age that companies would have to provide the revenue board with details about tax benefits including total amount of tax exemption and reduced rate of tax the company enjoyed, the sectors for which the company enjoyed the benefits and total payable amount of tax if there was no exemption or reduced rate.
The companies will also have to provide it with detailed information related to balance sheet, income, expenditure, intangible assets and loan to affiliated companies.
According to the NBR, the number of companies having electronic taxpayers’ identification number is around 80,000 in the country.
The official also said that MNCs, both foreign and local, would have to make a declaration whether it was liable to give the statement of international transactions (SITs) and whether the SITs were attached with the returns.
According to the existing income tax law, submission of SITs is mandatory for MNCs but many of the MNCs do not comply with the provision.
Field-level tax officials can also not detect the avoidance as they don’t have any information whether the company has international transactions or not, officials said.
They could not detect it even from tax returns in absence of declaration, they said.
They said that now they would easily be able to detect the non-compliant companies if they did not submit SITs tracking the information provided in the returns.
According to the NBR, nearly 1,000 MNCs including branch, liaison and representation offices operate in the country.
Of them, only 120-130 companies regularly submit their statements of international transactions (SIT) to the NBR.

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images