The National Board of Revenue has formed a technical committee to identify methods of receiving car owners’ data, including the actual transaction value of cars, from the Bangladesh Road Transport Authority to prevent tax evasion by car owners through hiding income and investment in the income tax returns.
The committee comprising officials from the NBR, BRTA and banks will also work on prevention of usage of fake electronic taxpayer identification numbers by car owners in obtaining registration and renewal of fitness certificate from the BRTA.
Revenue board officials said that the committee was formed as per decisions of a meeting with the BRTA and representatives of the banks on resolving problems related to collection of advance income tax on registration and renewal fitness certificates of cars, prevention of fake TIN usage and data sharing.
NBR chairman Abu Hena Md Rahamatul Muneem presided over the virtual meeting held on July 21.
The NBR will provide user IDs and passwords to the BRTA so that the authorities can access the NBR’s online TIN registration server to check the authenticity of the TIN numbers provided by car owners, they said.
They said that the decision was taken after the BRTA complained that they faced problems in crosschecking the authenticity of the TIN numbers.
NBR field offices, including the Central Survey Zone, also face problems in availing car owners’ data and transaction prices of cars to examine the income tax returns of the car owners.
There are allegations that in many cases, taxpayers who own multiple cars mention just one car in their tax files to evade payment of additional tax as the income tax law requires owners of more than one car to pay 50 per cent higher tax for the second car.
Car owners also hide income and declare the engine capacity of the car to be at a lower grade in the tax returns to avoid higher taxes, the officials said.
They said that it would be easy for income tax officials to crosscheck the information taxpayers furnished in the tax returns if they got the data from the BRTA.
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