Alternative Dispute Resolution mechanism of the National Revenue Board has yet to get momentum even one year after introduction of the system as the revenue board
failed to create awareness among the taxpayers to adopt it as a way of resolving tax disputes, NBR officials, experts and taxpayers observed.At a seminar on ADR related to income tax, they also identified some lackings in the existing rules and in the process of implementation.
The NBR and Bangladesh Investment Climate Fund of International Finance Corporation jointly organised the seminar at the Pan Pacific Sonargaon Hotel in the city.
There are thousands of cases related to income tax, value-added tax and customs duties remained pending at different courts involving Tk 30,000 crore, according to NBR
data.
Of the amount, Tk 24,000 crore is involved with disputes related to customs duties, Tk 4,000 crore with income tax related disputes and remaining is connected with
VAT-related cases.
In 2012, the revenue board introduced the ADR to realise the revenues through resolving disputes under the system.
‘Very few taxpayers have come to the NBR to settle only 212 income tax related disputes under the mechanism,’ NBR chairman Ghulam Hussain said.
The taxpayers’ response to adopt ADR for solving disputes related to customs duties, the biggest field of disputes, is very frustrating, he said adding that only 13
cases were referred to the ADR.
He said that under the ADR mechanism the income tax wing realised only Tk 65 crore from resolving 197 cases in which over Tk 600 crore was involved.
Expressing frustration over the scenario, the NBR chairman said, ‘We wanted to provide Tk 2,000 crore in the current financial year and Tk 3,000 crore in the next
financial year and onwards from the sector for constructing Padma Bridge by own resources.’
The outcome of the ADR says there is nothing to be complacent, Ghulam said adding that creating awareness among the stakeholders including taxpayers, tax lawyers and
tax officials remained as a big hurdle.
The ADR rule also failed to convince income tax lawyers, the major player of dispute resolution, to send their clients for solving disputes under it as there were no
incentives for them in the rule, he said.
The NBR chairman said that a full-fledged legal wing headed by a senior member would be established to facilitate realisation of revenues remained stuck at different
courts because of disputes between taxpayers and revenue authorities.
Deputy attorney general Abu Amjad said that tax officials should be more flexible in resolving cases under the ADR.
Bangladesh Industrial Finance Company Ltd chief financial officer Ahsanul Bari suggested for giving some power to the facilitator for resolving disputes as currently
the facilitator has no authority to resolve disputes by their own discretion.
NBR member Kalipada Halder and BICF representative Mazedul Islam, among others, spoke at the programme.
-With New Age input
