Legal trouble for tax evasion cases

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The tax evasion cases of National Board of Revenue (NBR) are facing challenges as the High Court (HC) recently stayed proceedings of two cases after petitions were filed saying the cases were filed without maintaining proper procedure and ignoring the provisions of law.

Legal experts said while filing the cases the NBR has applied the Emergency Power Rules for offences committed before the declaration of the state of emergency, which is absolutely illegal. They said the bureau has also followed the Income Tax Ordinance partially, which has deprived the accused of opportunities ensured by the ordinance.

They feared this type of criminal cases may have an adverse impact on the country’s economy as businessmen, who constitute a major part of the taxpayers, are becoming reluctant to continue business fearing harassment with such cases.

“The tax evasion cases were filed with partial application of the Income Tax Ordinance 1984 depriving the taxpayers of opportunities ensured by the ordinance,” said advocate Shah Zikrul Ahmed, former president of Tax Bar Association.

The experts said before filing a criminal case a deputy commissioner of taxes may issue a notice if anyone conceals particulars of their income or furnishes inaccurate particulars or omits or fails to disclose all material facts in the statement to the NBR.

The taxpayer then may submit a revised return to the NBR or file a writ petition to the NBR tribunal if they do not agree with the NBR notice. The NBR authorities can go for criminal case if the tribunal rejects the petition, the experts said.

Under section 170 of the Income Tax Ordinance the NBR can even compound offences before or after filing a case and dissolve the issue on compromise, they added.

The NBR has also limitations for realising taxes, they said, adding that it cannot realise or ask for taxes that remained unpaid for five years.

However, without following any of the provisions or maintaining a relaxed process of tax realisation the NBR charged taxpayers in their cases with providing false statements and concealing information in their declarations.

It also charged the accused under the Emergency Power Rules although the offences date back to the time before the declaration of the state of emergency.

“The NBR is moving away from its main objective of collecting revenue. Rather than making dodgers pay tax, the NBR is working to punish them which should not be its first task,” said Zikrul Ahmed.

There are 26 tax evasion cases in the five special anti-graft courts set up on the National Parliament premises on May 5. Of them judgments have been given in 17 cases against eight persons, seven of them tried in absentia.

Nine cases are still on trial.

Two of the detained accused–former housing and public works minister Mirza Abbas and former state minister for power Iqbal Hassan Mahmood Tuku–challenged the cases against them. The HC stayed the proceedings of the cases and issued rule upon the government.

Another writ petition filed by former state minister for labour and employment Amanullah Aman awaits HC decision.

JUDGMENTS GIVEN SO FAR
In the first ever tax evasion case filed on May 23, former BNP lawmaker Ali Asgar Lobi was sentenced to eight years’ imprisonment.

Shajahan Siraj, his wife Rabeya Siraj, son Rajib Siraj and Rajib’s wife Farzana Khan were sentenced to different terms ranging from eight years to forty years in 12 tax evasion cases. All were tried in absentia.

Afroza Abbas, wife of detained former minister Mirza Abbas, was sentenced in absentia to 16 years’ imprisonment in two cases. Dhaka City Corporation Ward Commissioner Mirza Khokon was sentenced in absentia to eight years in jail on September 10.

The convicted were also fined different amounts.

Eight cases including those against Mirza Abbas and detained Awami League Joint General Secretary Obaidul Quader and his wife Isratunnessa are pending with the special court.

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