The National Board of Revenue has put bar on chartered accountants and cost management accountants of 5 countries from income tax practice in the country to promote local professionals and prevent fake audit reports.
The revenue board has proposed an amendment in the Income Tax Rules-1984 putting restriction on chartered accountants and cost management accountants of India, Pakistan, England and Wales, and Scotland from providing advisory services related to income tax in Bangladesh.
Currently, along with Bangladeshi professionals, members of the Institute of Chartered Accountants in England and Wales, Scotland, India and Pakistan, the Society of Incorporated Accountants and Auditors in London, and Institutes of Cost and Management Accountants of Pakistan can practice as income tax advisors in the country.
Now, only Bangladeshi professionals will only be able to provide the services, officials of the revenue board told New Age on Thursday.
The provision has been in the law since independence of the country.
Many professionals in the sector from these countries and regions particularly from India work legally and illegally in the country taking the advantage of the rules and bringing huge amount of foreign currency from the country, they said.
On the other hand, many companies and firms are submitting fake audit reports signed by auditors from these countries to the NBR.
The revenue board cannot prevent such malpractice as it has not mechanism to check the authenticity of the reports and trace the auditors.
Members of the Institute of Chartered Accountants of Bangladesh also welcomed the move and said that it would prevent unauthorised employment in the country and save foreign currency as well as create more space for the local professionals.
They said that huge chartered accountants from these countries, particularly from India, had been legally and illegally working in the country.
According to ICAB and the NBR people, there are more than 75,000 companies remain active in the country which needed to submit audit reports to the revenue board along with income tax returns.
Of which, more than 50,000 companies submits fake audit reports in absence of monitoring and prevention mechanism.
ICAB council member and former president Humayun Kabir told New Age that the move of the NBR would bring down, at least, legal employment of such professionals in the country and remittance outflow from the country.
No chartered accountants of Bangladesh are allowed to work in abroad without either being citizen or become member of that countries professional institutes, he said.
Currently, the number of chartered accountants in the country who are member of the ICAB is more than 15,000 and more than 100 chartered accountants are joining the workforce each year, according to the ICAB.
There are another 25,000 students are studying the professionals course under the institute.
The revenue board has proposed an amendment in the Income Tax Rules-1984 putting restriction on chartered accountants and cost management accountants of India, Pakistan, England and Wales, and Scotland from providing advisory services related to income tax in Bangladesh.
Currently, along with Bangladeshi professionals, members of the Institute of Chartered Accountants in England and Wales, Scotland, India and Pakistan, the Society of Incorporated Accountants and Auditors in London, and Institutes of Cost and Management Accountants of Pakistan can practice as income tax advisors in the country.
Now, only Bangladeshi professionals will only be able to provide the services, officials of the revenue board told New Age on Thursday.
The provision has been in the law since independence of the country.
Many professionals in the sector from these countries and regions particularly from India work legally and illegally in the country taking the advantage of the rules and bringing huge amount of foreign currency from the country, they said.
On the other hand, many companies and firms are submitting fake audit reports signed by auditors from these countries to the NBR.
The revenue board cannot prevent such malpractice as it has not mechanism to check the authenticity of the reports and trace the auditors.
Members of the Institute of Chartered Accountants of Bangladesh also welcomed the move and said that it would prevent unauthorised employment in the country and save foreign currency as well as create more space for the local professionals.
They said that huge chartered accountants from these countries, particularly from India, had been legally and illegally working in the country.
According to ICAB and the NBR people, there are more than 75,000 companies remain active in the country which needed to submit audit reports to the revenue board along with income tax returns.
Of which, more than 50,000 companies submits fake audit reports in absence of monitoring and prevention mechanism.
ICAB council member and former president Humayun Kabir told New Age that the move of the NBR would bring down, at least, legal employment of such professionals in the country and remittance outflow from the country.
No chartered accountants of Bangladesh are allowed to work in abroad without either being citizen or become member of that countries professional institutes, he said.
Currently, the number of chartered accountants in the country who are member of the ICAB is more than 15,000 and more than 100 chartered accountants are joining the workforce each year, according to the ICAB.
There are another 25,000 students are studying the professionals course under the institute.
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