He says financial reports of companies do not reflect reality
National Board of Revenue Chairman Md Mosharraf Hossain Bhuiyan on Thursday vented his frustration saying that tendency to evade tax was growing in the country, depriving the government of huge amount of revenues.
“We do not get the real picture as you (chartered accountants) are not giving true financial statements after auditing local companies,” he said.
The NBR chief came up with the remarks while addressing a roundtable on upcoming national budget, organized jointly by the Institute of Chartered Accountants of Bangladesh (ICAB) and Doinik Prothom Alo at CA Bhaban in the capital.
ICAB President AF Nesaruddin delivered the welcome speech while former adviser to a caretaker government Rasheda K Chowdhury, Center for Policy Dialogue (CPD) Executive Director Fahmida Khatun, former chairman of Bangladesh Securities and Exchange Commission (BSEC) Faruq Ahmed Siddique were present among others.
The NBR chief observed that the auditors were making financial reports in one way for multinational companies and another way for the local companies.
“Many (auditors) do not agree when a company offers him to prepare its financial report in the way it wants, but there are some who agree to do the job,” he said.
He urged the ICAB members to conduct proper audits so that the government could collect proper taxes.
The NBR chief, however, admitted that NBR officials’ corruption was one of the reasons for the loss of government revenue.
“Corruption has not gone. Sometimes it falls and sometimes goes up but the overall corruption rate is almost the same,” he said, adding that one was inspired by other to do corruption.
“I am trying my best to reduce corruption by persuading my senior officials. But it is hard to control the roots level officials,” he said.
On corporate tax, the NBR chairman said cutting the tax was a complex matter as a little cut might create a huge revenue shortfall.
Hinting that tax return submission would be mandatory for candidates aspiring to contest national and local government elections in upcoming fiscal, the NBR chairman said; “We have tried to make it mandatory last year but failed.”