Gulam Rabbani :
The government has given an offer to the Bangladeshis a scope for legalizing their unreported assets outside the country without facing any question in the next fiscal year, subject to paying taxes ranging from only 7pc to 15pc.
But this offshore tax amnesty in the proposed budget will weaken the legal battles against money laundering in the country, legal experts say.
Meanwhile, Transparency International Bangladesh (TIB) has called for the repeal of unconstitutional, conflicting and discriminatory proposals of legalizing the laundered money. The organization said it was discriminatory and against the fundamental principles of the Constitution.
TIB Executive Director Dr Iftekharuzzaman said no matter how the Finance Minister explains, the opportunity to legalize the laundered money from abroad without question by paying nominal tax is clearly an unethical protection and reward for the money launderers.
This opportunity will encourage money laundering and corruption in general, which is unconstitutional and insulting to the Prime Minister’s declaration of ‘zero tolerance against corruption’.
Supreme Court lawyer Manzill Murshid said, “I think this proposal has been made in the budget to give special benefit to those who are the core persons of money laundering in the country. When the country’s higher judiciary is in a hard position against money launderers, government’s policy makers didn’t have any option without this proposal to give safeguards the launderers. This is in fact a legal process to give amnesty to the money launderers.”
Advocate Khurshid Alam Khan, a panel lawyer of the Anti-Corruption Commission (ACC), said, such a proposal would not weaken fighting in the money laundering cases as the government’s proposal has not yet become a law. However, government should not have given such an opportunity considering
the morality, added the lawyer.
Finance Minister AHM Mustafa Kamal during presenting the budget for the fiscal year 2022-2023 said undisclosed assets holders will be allowed to show any of their immovable assets outside Bangladesh in tax returns by paying a 15pc tax.
In the case of legalising any movable assets, including cash, bank accounts, securities and financial instruments without repatriation to Bangladesh, they will have to pay a 10pc tax. Besides, any cash, bank deposits, bank notes, bank accounts, convertible securities and financial instruments, if repatriated to Bangladesh, will be taxed at a rate of 7pc.
The minister said, “To keep the economy going, we have to arrange for more revenue for the government expenses on one hand, and also have to make the economic activities in the private sector more vibrant and dynamic on the other hand. I, therefore, proposed to add a new provision in the Income Tax Ordinance, 1984 so that money earned and asset acquired abroad can be mainstreamed into our economy with a view to create a flow of fresh fund and investment for economic activities.”
“According to the proposed provision, no authority, including the income tax authority, shall raise any question as to the source of any asset located abroad if a taxpayer pays tax on such asset,” added the Minister.
In recent days the higher judiciary has shown its hardship against the money laundering and money launderers. In recent days, ruling party leader Haji Salim, former Chief of Army Staff Lt Gen (retd) Harun-Ar-Rashid and other convicts denied bail by the Appellate Division and High Court division of the Supreme Court.
