Salaried persons with doubtful bank balance to face NBR audit

Jasim Uddin | Published at 12:05am on July 09, 2018


A file photo shows taxpayers filling in tax returns forms at an income tax fair in Dhaka. Salaried persons will face audit if income tax officials find inconsistency between the income shown by taxpayers and the fund credited to their bank accounts. — New Age photo

Salaried persons will face audit if income tax officials find inconsistency between the income shown by taxpayers and the fund credited to their bank accounts.
The National Board of Revenue, in its recent guidelines on income tax returns selection for audit, asked its field-level income tax officials to scrutinise bank statements of salaried persons submitted with the tax returns to see whether there is any inconsistency between the income showed in returns and the fund credited to their bank accounts.
Tax returns can be picked for audit in case of variation in information, said the guidelines for returns for the fiscal year of 2017-2018.
Audit, intelligence and investigation wing of the NBR also said that businesses and professionals would also face audit if tax officials found differences between the fund credit to their bank accounts and the sales or income.
Tax officials will select the tax files for audit considering the legal and factual reasons and importance of revenue mobilisation, it said.
Field-level tax officials usually select tax files up to 2 per cent to 4 per cent of total tax returns submitted under universal self-assessment method for intensive audit, known as field audit, with prior approval of the revenue board.
They select the tax files for audit based on risks of tax evasion following the criteria set in the guidelines.
All tax returns, however, face one kind of scrutiny, known as returns process, under which tax officials usually check the arithmetic and factual errors in the returns.
According to the guidelines, taxpayers who showed 15 per cent incremental income in the returns for the fiscal year than that of previous year and fulfilled some conditions including providing evidences in support of tax exempted income and not claiming refund will not be selected for audit.
Income tax returns with income from business or profession will fall under audit if it claims expenditure on interest payment without providing sufficient evidences and shows income and expenditure from other sources under the heads of business and profession.
Income tax files of the house owners who did not make transactions house rent income above Tk 25,000 through the banking channel will also come under audit.
Tax officials can select tax files of corporate taxpayers for non-submission of withholding tax returns, inconsistencies in profit loss accounts or manufacturing and trading account, and income and expenditure statement with the withholding tax returns.
Company tax returns without complete audit report and total income computation sheet and having inconsistency between income and computational sheet will also be selected for audit.
Tax files claiming excessive expenditure depreciation without having supportive documents will also come under audit.
Taxmen may select corporate tax file for audit if it shows above Tk 5 lakh in gift or loan without bank statement, having no documents for a claim of tax exempted income in the tax returns, mismatch between declared turnover and sales with the bank deposits.
Corporate tax files will also face audit if any incidence of acquisition, merger and amalgamation takes place, the guidelines stated.