Staff Reporter :
The National Board of Revenue and British American Tobacco Bangladesh (BATB) are at loggerheads over realization of Tk 1,924 crore tax.
Large Taxpayers Unit (LTU) of the National Board of Revenue (NBR) on March 22, 2015 issued a demand notice to the BATB claming the company evaded the tax (VAT and supplementary duty) by selling medium-grade cigarettes declaring them low-grade ones.
According to the LTU (VAT wing), the BATB evaded the taxes from August 19, 2009 to January 31, 2013 by selling its Pilot and Bristol brand cigarettes at lower prices declaring the two brands in lower grade ones though those are medium grade ones.
But the BATB has been denying paying the tax questioning the legality of the notice. Later, it also filed two writ petitions before the High Court challenging the NBR’s move.
The HC later sent back the dispute to the LTU (VAT) and asked its commissioner to settle it within 120 days.
In this context, the company several times requested the revenue authorities to resolve the issue through alternative dispute resolution (ADR). But it did not respond to its call further deepening the discrepancy between them.
“Since the court order, we’re trying to convince the revenue board authorities for resolving the matter through the ADR. But the issue still remains unresolved causing anxiety to us,” an official of BATB told The New Nation on Monday asking not to be named.
He said the amount that the NBR demanded from the company is three times higher than it’s yearly after tax profit. If we pay the amount, it will pose a big threat to the existence of our company.
Expressing concern over the dispute, the British High Commissioner in Dhaka earlier wrote to the Finance Minister seeking his action in this regard.
The High Commissioner also requested the minister to settle the issue outside the court as the company had filed a two writ petitions before the High Court challenging the legality of the NBR’s demand for additional tax.
“The shareholders and high-ups of the company are worried about the long-standing dispute. They want to settle the issue immediately through the ADR,” said the BATB official, adding, “We have already sought NBR’s cooperation in this regard.”
When asked, the LTU Commissioner Motiur Rahman said, “Time has already flown out. Now it is impossible to settle the issue out of court.”
The National Board of Revenue and British American Tobacco Bangladesh (BATB) are at loggerheads over realization of Tk 1,924 crore tax.
Large Taxpayers Unit (LTU) of the National Board of Revenue (NBR) on March 22, 2015 issued a demand notice to the BATB claming the company evaded the tax (VAT and supplementary duty) by selling medium-grade cigarettes declaring them low-grade ones.
According to the LTU (VAT wing), the BATB evaded the taxes from August 19, 2009 to January 31, 2013 by selling its Pilot and Bristol brand cigarettes at lower prices declaring the two brands in lower grade ones though those are medium grade ones.
But the BATB has been denying paying the tax questioning the legality of the notice. Later, it also filed two writ petitions before the High Court challenging the NBR’s move.
The HC later sent back the dispute to the LTU (VAT) and asked its commissioner to settle it within 120 days.
In this context, the company several times requested the revenue authorities to resolve the issue through alternative dispute resolution (ADR). But it did not respond to its call further deepening the discrepancy between them.
“Since the court order, we’re trying to convince the revenue board authorities for resolving the matter through the ADR. But the issue still remains unresolved causing anxiety to us,” an official of BATB told The New Nation on Monday asking not to be named.
He said the amount that the NBR demanded from the company is three times higher than it’s yearly after tax profit. If we pay the amount, it will pose a big threat to the existence of our company.
Expressing concern over the dispute, the British High Commissioner in Dhaka earlier wrote to the Finance Minister seeking his action in this regard.
The High Commissioner also requested the minister to settle the issue outside the court as the company had filed a two writ petitions before the High Court challenging the legality of the NBR’s demand for additional tax.
“The shareholders and high-ups of the company are worried about the long-standing dispute. They want to settle the issue immediately through the ADR,” said the BATB official, adding, “We have already sought NBR’s cooperation in this regard.”
When asked, the LTU Commissioner Motiur Rahman said, “Time has already flown out. Now it is impossible to settle the issue out of court.”
