The National Board of Revenue (NBR) is investigating a taxpayer’s claim of Tk 7.21 billion in remittances, suspecting a possible link to arms purchases by allies of ousted Prime Minister Sheikh Hasina.
The taxpayer, SM Faruqui Hassan, a Dhaka-based businessman, declared the sum as remittances from Chinese firms, including Norinco International Cooperation Ltd and China Shipbuilding and Offshore International Co Ltd, between FY13 and FY24. However, officials believe he was not an expatriate and may have falsely claimed the funds as remittances to secure tax exemptions.
An investigation report obtained by The Financial Express reveals that multiple tax officials closed the case between 2017 and 2021 without conducting proper audits. The NBR has reopened the file, identifying a tax commissioner and an additional commissioner for potential irregularities, as the taxpayer was previously charged minimal taxes—just Tk 448 in FY18 and Tk 15,095 in FY19.
The case has reignited debate over Bangladesh’s 2.5% cash incentive on remittances. Economist Dr Zahid Hussain has called for scrapping the incentive, arguing it enables tax evasion by influential groups.
Tax authorities have warned that if Hassan fails to provide valid documentation, the amount will be taxed at the highest applicable rate. More cases involving questionable remittance claims are under scrutiny, with officials pledging strict action against tax fraud.
