Nobel Laureate Prof Muhammad Yunus on Tuesday paid Tk12,46,72,608 in taxes to the National Board of Revenue (NBR) in cases filed in connection with unpaid taxes on gifts during the 2011-2013 period.
Dr Yunus gave Tk76.73 crore to three trusts – Professor Muhammad Yunus Trust, Yunus Family Trust, and Yunus Centre – in the tax years 2011-2012 and 2013-2014, according to a case statement.
In line with the Gift Tax Act, 1990, the NBR sent a notice to Dr Yunus demanding Tk12,28,74,000 in taxes against a total donation of Tk61,57,69,000 in the tax year 2011-2012.
In the tax year 2012-2013, the NBR demanded Tk1,60,74,000 against a donation of Tk8.15 lakh.
Then in the tax year 2013-2014, the NBR issued a notice demanding TK1,50,21,000 in taxes against a donation of Tk7,00,65,000.
Later, Prof Yunus filed a case with the Tax Appellate Tribunal challenging the imposition of taxes on the donated money.
Dr Yunus claimed in the case that according to the law, the NBR cannot demand taxes on donations.
On November 20, 2014, the tribunal rejected his application. In 2015, Yunus filed three writ petitions with the High Court.
In a statement issued in early June this year, Yunus Centre explained that Prof Yunus's income tax advisor had advised that he wouldn't have to pay gift tax against money donated to a philanthropic trust.
“On the basis of this advice, Prof Yunus did not pay any tax at the time of the transfer of the money to both trusts. But the tax officer concerned, after Prof Yunus' tax return was submitted, imposed a gift tax since there was a declaration of gift in the tax return.
“In consultation with his tax lawyer, Prof Yunus decided to seek a decision from the court. The court has given its opinion in favour of paying the tax,” Yunus Centre added.