Coaching Through Change Essay Example | Topics and Well Written Essays - 250 words

Coaching Through Change - Essay Example Is this undergraduate undertakes this program, he or she will be in a position to be empowered to engage in broad thinking, global management and strategic competition. The undergraduate will be in a position to collaborate with other accomplished leader to acquire the insights of the industry and other global perspectives to lead the organization that they will undertake. To show their success, the undergraduate undertaking this program will be in a position to enhance their ability and improve the performance of the firm by analyzing and recognizing the strengths and weaknesses of the firm. The individual will also be in a position to set the required direction for their business and understand the competitive forces capable of distinguishing the profitable institutions. To be successful and reach his goal, the undergraduate will also be in a position to transform their operational capabilities into their competitive advantage. With so doing, the undergraduate is in a position to move the organizations that they will be employed to another

Energy use in developing countries ((In indea )) Research Paper

Energy use in developing countries ((In indea )) - Research Paper Example The countries that are under industrial revolution are three to four times less in energy consumption than the developing states. Energy supply is based on coal, whereby, the developing countries tend to rely on coal in conjunction with renewable energies rather than nuclear energy as gas and oil (Verma, 2008, P.124). Strategy documents for the reduction of poverty are hitherto under the control of the energy cooperation. Furthermore, there is framework strategy of cooperation that is; aspect in horizontal war where the basis is of two factors, reform of energy, and technology transfer. Moreover, there is demand-side and the supply-side cooperation. Diversification of energy is essential in that it enhances the use of different types of energy other than relying on the primary source such as gas, oil, and fossils. Long-term objectives are in place to guarantee the access of core energy servicing to individuals for a longer period of term (Anderson, 2008, P.87). Development plans of India should have horizontal energy integration in order to manage the long-term strategy. Furthermore, the institutional support should offer technical networking and assistance. The energy systems have several polluting factors that are alarming. They can cause harm to an individual, and if not put into consideration, its impact is massive. Some of the factors include; A-Bo, this contains elements like abatement, activism, and Addams that are harmful. In addition, there is air pollution which has hence put into propel the air pollution control act. Other factors might be br-co, co-ea, and the ec-fi factors. This is converter by a catalyst, the diesel dilution and lastly the electromagnetic fields, which usually cause harm to human era (International energy agency, 2009, P.2009). It is pertinent that the renewable energy and wastes forms about one fourth of energy use in India. Coherently

The Audit Report and Internal Control Evaluation Essay Example for Free

The Audit Report and Internal Control Evaluation Essay An audit has been completed for Apollo Shoes as of December 31, 2005 and 2006, and the associated income statement, shareholders’ equity, cash flows and complete income. My firm has reviewed the organization’s assessment, comprised in the associated report of management on Commercial Reporting, in which Apollo Shoes sustained definite internal control as of December 31, 2006, founded on standards recognized in internal control. The management team of Apollo Shoes’ is accountable for the financial reports, for sustaining current internal controls, and appraisal of internal control regarding financial reporting. It is our duty to communicate an unbiased view on these financial reports, assessment by management, and the usefulness of the organization’s internal control sustaining the financial report. My team has organized our inspections in conjunction with the principles of the Public Company Accounting Oversight Board (PCAOB). We strategically planed and enforced the audit to acquire practical assurance. Regardless, the actual internal control consisting of fiscal reporting was sustained in all respects of materiality or whether financial reports are without material misstatement those standards that the PCAOB have put into place are required in order to plan and prepare for a proper audit. Our review of the financial reports will consist of proof promoting the totality of assets and disclosures in the financial reports, investigating all details in their entirety, evaluating the generally accepted accounting principles (GAAP), and estimating the general arrangement of financial reports. During the audit we obtained a comprehension of internal control over Apollo Shoes’ monetary reporting, and we appraised management’s valuation. We preformed all services and procedures as we felt necessary. We tested and assessed the proposal and the internal control’s operating usefulness. These audits supply practical reasoning for the opinions concluded. We did not find it necessary to audit the financial reports for the year ended December 31, 2006 due to the financial reports being previously audited by other auditors whose report relates to the previous period. A procedure developed to supply justifiable guarantee regards to the fluency and consistency of financial recording and the planning of financial reports for external purposes in accordance with (GAAP) is an organization’s internal control over fiscal recording. An organization’s financial reporting that consists of internal control, contains those guidelines and processes that relate to the conservation of reports that truthfully and justifiably replicate the communications and natures of the company’s assets and provide reasonable assertions that those transactions are documented as required to authorize the research of monetary reports in agreement with GAAP. All revenues and expenses of the organization are only being created in agreement with approvals of directors and management of the organization. These policies and procedures also implement practical assertion pertaining to the inhibition or appropriate recognition of procurements unauthorized or nature of the organization’s possessions that may possess a quantifiable conclusion on the financial reports. Misstatements may not be avoided or detected because of its subjective restrictions. Furthermore, additions of any assessment of usefulness to impending periods are governed due to the threat that controls possibly will develop insufficiencies due to alterations in circumstances, or that the degree of acquiescence with the guidelines or processes may depreciate. Apollo Shoes has lost its chief customer and is in legal dispute with one of its clients that has resulted in a lawsuit for an amount of $12,000,000 against the organization. The case is in the preliminary juncture but the organization will provoke a fee of $10,000,000 minimum litigation in conjunction to the result of case. Due to these circumstances consequently the financial statements have not been adjusted. It is the firm’s opinion that the financial statements denoted in the previous paragraph present justly, in all quantifiable regards, the pecuniary situation of Apollo Shoes, INC. as of December 31, 2005 and 2006 and the outcomes of Apollo’s cash flows and procedures for the three years in the period ended December 31, 2006 in conjunction with GAAP. In addition, it is our opinion that Apollo Shoes sustained operative internal control and is legitimately stated in all material aspects established on the Committee of Sponsoring Organizations’ (COSO) criteria. The additional financial reports have been adjusted presuming the Apollo Shoes attains the incomes required to endure and function indefinitely. However, as discoursed in the financial statements’ notes, Apollo Shoes no longer does business with its major customer. This raises considerable uncertainty in the organization’s capability to endure as a going concern. The financial reports do not contain any modification that might effect the conclusion of this conjecture. Anderson, Olds and Watershed Certified Public Accountants CPA, Internal Audit November 26, 2012 Anderson, Olds and Watershed Certified Public Accountants Shoetown, ME 0001

Theory of Competitive Advantage Value Chain Analysis

Theory of Competitive Advantage Value Chain Analysis The initial theory regarding relative advantages was related to comparative advantages of regions or nations. It included land, location, labor, natural resources and local population size. But it is not true always as rise of some the most advanced industrial nations have proved that the above factors have less influence in their course of development. For example, Japan had disadvantage regarding availability of raw materials, abundant space and even access to other lands. But still the Japanese companies have prospered and rose to be among the best in the world. Again Japan also has disadvantage in terms of population size available. But that could not stop Japan from being a leader in business. Also economic hardship can really fuel growth in a nation. It has been seen both in case if both Japan and Germany. Both these nations were under severe economic trouble after World War II, but still they grew to be industry major countries in the world. The reason for such behavior of nations or organizations in particular can be understood from The theory of competitive advantage which says that there are other critical factors that determine the industry leadership. As per Michael Porter, the renowned Harvard business school professor sustainable industrial growth is hardly dependent on the above inherited factors. But it depends on groups of interconnected firms, suppliers, related industries, and institutions that arise in certain locations and termed them as clusters. These clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field. They grow on locations where enough resources and competences amass and reach a critical threshold, giving it a key position in a given economic branch of activity, with a decisive sustainable competitive advantage over others places, or even a world supremacy in that field. Porter says clusters can influence competition in three ways: They can increase the productivity of the companies in the cluster. They can drive innovation in the field. They can stimulate new businesses in the field. The competitive advantage of any industry or organization is determined by five forces of Porter. These five forces help the managers to focus on competitive forces that prevail in the industry and the possible threats to their organizations. Diagrammatic view of Porters five forces These are: Existing competitive rivalry among organizations in industry: The more that companies compete against one another for customers, ex- by lowering the prices of their products or by increasing advertising the lower is the level of industry profits. So this is a threat to the companies. Hence in order to sustain the companies may come up with new strategies and innovations in their technologies as well as business processes. Thus competition fuels growth in the industry as well as leads to innovations. Threat of new market entrants: The easier it is for companies to enter the industry, because for ex- barriers to entry, such as brand loyalty are low, more the likely it is for industry prices and hence the industry profits to be low. In the wake of such a situation the companies might go for further innovations or even differentiations in their products or businesses. Thus it helps in the evolution process of the companies. Bargaining power of buyers: It depends on the size of the customers. The bargaining powers of the customers come if they are large in size. So they can bargain to drive down the price of that output. As a result the industry producers might encounter low profits. So the bargaining power of buyers also decides the competitive advantage of the industry. Power of suppliers: The suppliers also have important role in deciding the competitive advantage of firms. If there are only few large suppliers of an important input, then suppliers can drive up the price of that input and expensive inputs result in lower profits for profits for companies in an industry. Threat of substitute products (including technology change): Often the output of one industry is a substitute for the output of another industry. Ex- plastic may be substitute for steel in some industry. When this type of substitutes exists in the industry companies cannot demand very high prices for it or customers will switch to the substitute and this constraint keeps their profits low. Again the above all factors lead the managers to take decisions in four business level strategies to gain competitive advantage. These are: Low cost strategy: It is the strategy where the company focuses all its energies to lower its costs in all the departments. As a result it can sell its products in lower costs than its rivals. Here though the companies are selling the products at low prices but since the production costs are low the company still makes profits. Ex- BIC competes Gillette with this strategy in razor blade industry. Focused low cost strategy: In such a strategy managers focus to serve only a segment of overall market and tries to be lowest cost organization in that segment. Differentiation strategy: It is the strategy where organizations products can be distinguished from the products of other organizations on factors like product design, quality, service, or after sales service. Here the process of differentiation may be unique and expensive. Coca cola, PepsiCo, PG practice such strategies. Focused differentiation strategy: it is the strategy that tries to serve only one segment of the overall market and aims to be the most differentiated organization serving that segment. For ex, BMW focuses on this strategy. The theory of competitive advantage can be also easily extended to the position of various nations. Here four factors have taken into consideration to nalayze the competitive position of the nations. Germany and Japan are most apt examples of such a competitive advantage. These are discussed as follows: Four factors for competitive advantage: The strategy, structure and rivalry of firms: As there is high competition among the firms, this competitive environment leads the firms to work harder for increase in productivity and innovation. The Japanese companies are cooperative at certain levels but they are also fiercely competitive. Thus it is the strategy and structure and rivalry of the firms that gives rise to excellence to the firms in terms of efficiency. Demand conditions: If the firms face challenging and demanding customers then they constantly face pressure to improve their competiveness by innovative products, high quality etc. Related supporting industry: A company prospers when supporting companies are located in the same area. Presence of supporting companies in the vicinity gives the firm added advantage in terms of gaining technological support and expertise. Factor conditions: Specialized factors of production are skilled labor, capital and infrastructure. Non-key factors or general use factors, such as unskilled labor and raw materials, can be obtained by any company and, hence, do not generate sustained competitive advantage. However, specialized factors involve heavy, sustained investment. They are more difficult to duplicate. This creates a competitive advantage, because if other firms cannot easily duplicate these factors, they are valuable. VALUE CHAIN Value Chain is a model that helps to analyze specific activities through which firms can create value and competitive advantage. A value chain is a chain of activities for a firm operating in a specific industry. The business unit is the appropriate level for construction of a value chain, not the divisional level or corporate level. Products pass through all activities of the chain in order, and at each activity the product gains some value. The chain of activities gives the products more added value than the sum of the independent activitys value. It is important not to mix the concept of the value chain with the costs occurring throughout the activities. A diamond cutter, as a profession, can be used to illustrate the difference of cost and the value chain. The cutting activity may have a low cost, but the activity adds much of the value to the end product, since a rough diamond is significantly less valuable than a cut diamond.Value Chain framework model Value Chain Model of Porter THE ACTIVITIES OF THE VALUE CHAIN Primary activities (line functions) Inbound Logistics. Includes receiving, storing, inventory control, transportation planning. Operations. Includes machining, packaging, assembly, equipment maintenance, testing and all other value-creating activities that transform the inputs into the final product. Outbound Logistics. The activities required to get the finished product at the customers: warehousing, order fulfillment, transportation, distribution management. Marketing and Sales. The activities associated with getting buyers to purchase the product, including: channel selection, advertising, promotion, selling, pricing, retail management, etc. Service. The activities that maintain and enhance the products value, including: customer support, repair services, installation, training, spare parts management, upgrading, etc. Support activities (Staff functions, overhead) Procurement. Procurement of raw materials, servicing, spare parts, buildings, machines, etc. Technology Development. Includes technology development to support the value chain activities. Such as: Research and Development, Process automation, design, redesign. Human Resource Management. The activities associated with recruiting, development (education), retention and compensation of employees and managers. Firm Infrastructure. Includes general management, planning management, legal, finance, accounting, public affairs, quality management, etc. A COST ADVANTAGE BASED ON THE VALUE CHAIN A firm may create a cost advantage: by reducing the cost of individual value chain activities, or by reconfiguring the value chain. Note that a cost advantage can be created by reducing the costs of the primary activities, but also by reducing the costs of the support activities. Recently there have been many companies that achieved a cost advantage by the clever use of Information Technology. Once the value chain has been defined, a cost analysis can be performed by assigning costs to the value chain activities. Porter identified 10 cost drivers related to value chain activities: Economies of scale. Learning. Capacity utilization. Linkages among activities. Interrelationships among business units. Degree of vertical integration. Timing of market entry. Firms policy of cost or differentiation. Geographic location. Institutional factors (regulation, union activity, taxes, etc.). A firm develops a cost advantage by controlling these drivers better than its competitors do. A cost advantage also can be pursued by Reconfiguring the value chain. Reconfiguration means structural changes such as: a new production process, new distribution channels, or a different sales approach. DIFFERENTIATION AND VALUE CHAIN A differentiation advantage can arise from any part of the value chain. For example, procurement of inputs that are unique and not widely available to competitors can create differentiation, as can distribution channels that offer high service levels. Differentiation stems from uniqueness. A differentiation advantage may be achieved either by changing individual value chain activities to increase uniqueness in the final product or by reconfiguring the value chain. Porter identified several drivers of uniqueness: Policies and decisions Linkages among activities Timing Location Interrelationships Learning Integration Scale (e.g. better service as a result of large scale) Institutional factors Many of these also serve as cost drivers. Differentiation often results in greater costs, resulting in tradeoffs between cost and differentiation. There are several ways in which a firm can reconfigure its value chain in order to create uniqueness. It can forward integrate in order to perform functions that once were performed by its customers. It can backward integrate in order to have more control over its inputs. It may implement new process technologies or utilize new distribution channels. Ultimately, the firm may need to be creative in order to develop a novel value chain configuration that increases product differentiation. TECHNOLOGY AND VALUE CHAIN Because technology is employed to some degree in every value creating activity, changes in technology can impact competitive advantage by incrementally changing the activities themselves or by making possible new configurations of the value chain. Various technologies are used in both primary value activities and support activities: Inbound Logistics Technologies Transportation Material handling Material storage Communications Testing Information systems Operations Technologies Process Materials Machine tools Material handling Packaging Maintenance Testing Building design operation Information systems Outbound Logistics Technologies Transportation Material handling Packaging Communications Information systems Marketing Sales Technologies Media Audio/video Communications Information systems Service Technologies Testing Communications Information systems Note that many of these technologies are used across the value chain. For example, information systems are seen in every activity. Similar technologies are used in support activities. In addition, technologies related to training, computer-aided design, and software development frequently are employed in support activities. To the extent that these technologies affect cost drivers or uniqueness, they can lead to a competitive advantage. LINKAGES BETWEEN VALUE CHAIN ACTIVITIES Value chain activities are not isolated from one another. Rather, one value chain activity often affects the cost or performance of other ones. Linkages may exist between primary activities and also between primary and support activities. Consider the case in which the design of a product is changed in order to reduce manufacturing costs. Suppose that inadvertently the new product design results in increased service costs; the cost reduction could be less than anticipated and even worse, there could be a net cost increase. Sometimes however, the firm may be able to reduce cost in one activity and consequently enjoy a cost reduction in another, such as when a design change simultaneously reduces manufacturing costs and improves reliability so that the service costs also are reduced. Through such improvements the firm has the potential to develop a competitive advantage. ANALYZING BUSINESS UNIT INTERRELATIONSHIPS Interrelationships among business units form the basis for a horizontal strategy. Such business unit interrelationships can be identified by a value chain analysis. Tangible interrelationships offer direct opportunities to create a synergy among business units. For example, if multiple business units require a particular raw material, the procurement of that material can be shared among the business units. This sharing of the procurement activity can result in cost reduction. Such interrelationships may exist simultaneously in multiple value chain activities. Unfortunately, attempts to achieve synergy from the interrelationships among different business units often fall short of expectations due to unanticipated drawbacks. The cost of coordination, the cost of reduced flexibility, and organizational practicalities should be analyzed when devising a strategy to reap the benefits of the synergies. OUTSOURCING VALUE CHAIN ACTIVITIES A firm may specialize in one or more value chain activities and outsource the rest. The extent to which a firm performs upstream and downstream activities is described by its degree of vertical integration. A thorough value chain analysis can illuminate the business system to facilitate outsourcing decisions. To decide which activities to outsource, managers must understand the firms strengths and weaknesses in each activity, both in terms of cost and ability to differentiate. Managers may consider the following when selecting activities to outsource: Whether the activity can be performed cheaper or better by suppliers. Whether the activity is one of the firms core competencies from which stems a cost advantage or product differentiation? The risk of performing the activity in-house. If the activity relies on fast-changing technology or the product is sold in a rapidly-changing market, it may be advantageous to outsource the activity in order to maintain flexibility and avoid the risk of investing in specialized assets. Whether the outsourcing of an activity can result in business process improvements such as reduced lead time, higher flexibility, reduced inventory, etc. Thus we can see that every aspect of an organization can be rightly explained in light of value chain analysis to judge the competitive position of the organization. Normally, the Value Chain of a company is connected to other Value Chains and is part of a larger Value Chain. Hence, developing a competitive advantage depends on how efficiently we can analyze and manage the entire Value Chain.

The Rich get Richer and the Poor get Poorer :: Wealth Poverty

"The Rich get Richer and the Poor get Poorer" Living in the United States of America allows for many freedoms and opportunities to its citizens. Growing up, children learn that in the United States means that everyone is treated equally, and fairly. In addition, one is made to believe that a prejudiced outlook on minorities is a problem of the past. Jeffrey Reiman's article, "The Rich get Richer and the Poor get poorer," displays the truth of how the real world is. The article shows a clearer picture as to how destitute and African American people are treated extremely different then Caucasians do. The idea of underprivileged citizens having a greater chance of being arrested, more likely to be sentenced, and punished for a longer amount of time is not how one would think the criminal justice system works. Nobody wants to acknowledge the fact that hate does still exist in the United States. Most still wants to believe that all people will be treated equally, no matter who they are. Not always what people think is happening in this society is correct. Also, there is a huge difference in poor people being arrested compared to upper and middle-class. Does this mean that poor people cannot slip out of punishment, but rich people can? Some believe this clearly shows that impoverished people are looked down upon in society. Although it is a hard concept to believe, statistics show that it is true. In 1978, fifty three percent African Americans jail inmates had pre-arrest incomes below three thousand dollars compared with forty four percent of Caucasian inmates. In 1983 the median pre-arrest income of African Americans was four thousand sixty-seven dollars and that of Caucasian inmates was six thousand three hundred and twelve dollars. These statistics provide evidence that both African-American and poor people are more likely to be in jail. (Reiman, 97) There is a better financial outlook though; the poverty rate for African Americans in 2000, is the lowest measured since 1959-the earliest year for which poverty data are available. The 2000 rate was down from twenty-three percent in 1999. About half-million fewer African Americans were poor in 2000 than in 1999, seven million compared to eight million. In 1998 African American men were making more money then Caucasian women. Now African American women are catching up in the higher pay roll. In 1998 African American women were only one thousand dollars behind Caucasian women.

Essay --

The Evolution of a Global Economy and Its Effects Relating to Wal-Mart Introduction The whole has been filled with many business challenges and market opportunities. As a result, there have been many changes in the overall turnover of the organization. This paper will focus on financial resources, operating, financial and equity return of the organization. International finance has been a major boost for businesses world over to grow and dominate their sectors. Those businesses that utilize this facility end up being a major success internationally. The use of international finance means that the businesses have more investments, cash flows and capital growth; this increases their chances of growth through investing in global markets. World financial institutions such as; world banks, world trade organizations, commercial banks have been responsible for funding business that have changed over to big businesses making volumes of sales throughout the world. I would like to make my discussion by using Wal-Mart as an example of what is happening in our world. For example, Thomas Friedman, in his book â€Å"The World is Flat†, says that if Wal-Mart were an individual business, it would rank as China’s eighth-biggest trading partner, ahead of Russia, Australia, and Canada. Wal-Mart is a perfect example of a business that has used world finance to retain sustained growth and development. This paper also focuses on world finance and how it has enabled Wal-Mart to grow beyond borders while still a gross profit, it also answers the question how government bodies affect financial decision-making. This paper studies Wal-Mart external business market and its influence on its strategic business contingency plan. Economically, Wal-Mart has enjoyed... ...art has joint ventures in China and several majority-owned subsidiaries. Wal-Mart’s majority-owned subsidiary in Mexico is Walmex. In Japan, Wal-Mart owns 100 percent of Seiyu as of 2008 (walmartstores.com) Wal-Mart also owns 51 percent of the Central American Retail Holding Company, more than 360 supermarkets and other stores in Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica. Global Impact In 1993, President Bill Clinton signed The North America Free Trade Agreement into law. The trade agreement eliminated all non-tariff barriers to agricultural trade and tariff rate quotas allowing Wal-Mart to import products and export jobs. This had a great financial impact on America. However after seeing the affects this agreement would have on our country, Congress expanded the North America Free Trade Agreement to include over thirty-one additional countries. Essay -- The Evolution of a Global Economy and Its Effects Relating to Wal-Mart Introduction The whole has been filled with many business challenges and market opportunities. As a result, there have been many changes in the overall turnover of the organization. This paper will focus on financial resources, operating, financial and equity return of the organization. International finance has been a major boost for businesses world over to grow and dominate their sectors. Those businesses that utilize this facility end up being a major success internationally. The use of international finance means that the businesses have more investments, cash flows and capital growth; this increases their chances of growth through investing in global markets. World financial institutions such as; world banks, world trade organizations, commercial banks have been responsible for funding business that have changed over to big businesses making volumes of sales throughout the world. I would like to make my discussion by using Wal-Mart as an example of what is happening in our world. For example, Thomas Friedman, in his book â€Å"The World is Flat†, says that if Wal-Mart were an individual business, it would rank as China’s eighth-biggest trading partner, ahead of Russia, Australia, and Canada. Wal-Mart is a perfect example of a business that has used world finance to retain sustained growth and development. This paper also focuses on world finance and how it has enabled Wal-Mart to grow beyond borders while still a gross profit, it also answers the question how government bodies affect financial decision-making. This paper studies Wal-Mart external business market and its influence on its strategic business contingency plan. Economically, Wal-Mart has enjoyed... ...art has joint ventures in China and several majority-owned subsidiaries. Wal-Mart’s majority-owned subsidiary in Mexico is Walmex. In Japan, Wal-Mart owns 100 percent of Seiyu as of 2008 (walmartstores.com) Wal-Mart also owns 51 percent of the Central American Retail Holding Company, more than 360 supermarkets and other stores in Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica. Global Impact In 1993, President Bill Clinton signed The North America Free Trade Agreement into law. The trade agreement eliminated all non-tariff barriers to agricultural trade and tariff rate quotas allowing Wal-Mart to import products and export jobs. This had a great financial impact on America. However after seeing the affects this agreement would have on our country, Congress expanded the North America Free Trade Agreement to include over thirty-one additional countries.

Tax(Case Report-on-Income-Tax-Authorities-in-Bangladesh)

ASSIGNMENT on Income Tax Authorities in Bangladesh [pic] National Board of Revenue – NBR Rajashwa Bhaban Segunbagicha, Dhaka Telephone: +88 02 933-3444. http://www. nbr-bd. org National Board of Revenue (NBR), Bangladesh. Page 2 of 31 Table of contents: |Serial |Topic |Page No. | |I |Cover |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 01 | | |Page†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. | | | |. | |II |Topic/Source of the ASSIGNMENT†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 02| |III |Table of |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 03| | |contents†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ | | |01 |Letter of |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 04| | |Transmittal†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. | |02 |Acknowledgement †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 05| |03 |Background of |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 06| | |NBR†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. | | |04 |Taxation and its |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 07| | |history†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ | |05 |Tax Authori ties of Bangladesh †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10 | |06 |Types of Income †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦12 | |07 |Classification of Tax systems†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 | |08 |Types of |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦14 | | |Taxation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. | |09 |Methodology †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦15 | | |9. 01 Sources of Income†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦15 | | |9. 02 Tax Rate†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦16 | | |9. 03 Tax Rebate for investment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦16 | | |9. 04 Who should submit Income Tax Return? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 | | |9. 05 Time to submit Income Tax Return †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦18 | | |9. 06 Assessment Procedure †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦19 | | |9. 07 Tax withholding functions †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦19 | | |9. 08 Major areas for final settlement of tax liability †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦22 | | |9. 09 Fiscal incentives †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦23 | | |9. 10 Avoidance of Double Taxation Agreement †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦24 | |10 |Steps for collecting Income Tax in Bangladesh†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦24 | |11 |Procedure of Assessment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦25 | |12 |Problems for collecting Income Tax†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦26 | |13 |Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. |†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦31 | | |†¦Ã¢â‚¬ ¦.. | | National Board of Revenue (NBR), Bangladesh.Page 3 of 31 Letter of Transmittal March 03, 2012 To Md. Abdul Awal Chairman, EECS deparment NorthSouth University Basundhara Campus, Dhaka. Subject: Submission of Assignment on â€Å"Income Tax Authorities in Bangladesh†. Dear Sir I am pleased to submit this Assignment-report on â€Å"Income Tax Authorities in Bangladesh†. This research program was taken by the help of â€Å"Three tax system of Bangladesh†, written by M. A. Akkas, and â€Å"Income Tax† written by â€Å"Mr. Mahmud† and â€Å"Purohit Bhattacharjee†. Here is the report on the observational study of â€Å"Income Tax authority in Bangladesh†.We honestly believe that this report will fulfill the requirements of the case report, which will help us a lot to gain sufficient knowledge about the â€Å"Income Tax authority in Bangladesh† Sincerely, Deb kumar Roy ID:0910019040 National Board of Revenue (NBR), Bangladesh. Page 4 of 31 Acknowledgement I am very much grateful to the God first, who has given me all the ability to perform this chore. At last but not the least, I am grateful to my ever-respected parents those who always give us mental support and well wishes.National Board of Revenue (NB R), Bangladesh. Page 5 of 31 Background of NBR The National Board of Revenue (NBR) is the central authority for tax administration inBangladesh. ItwasestablishedbyPresident'sOrderNo. 76of1972. Administratively, it is under the Internal Resources Division (IRD) of the Ministry of Finance (MoF). MoF has 3 Divisions, headed by 3 permanent Secretaries to the Government, namely, the Finance Division the Internal Resources Division (IRD) and the Economic Relations Division (ERD). The Secretary, IRD is the ex-officio Chairman of NBR.NBR is responsible for formulation and continuous re-appraisal of tax-policies and tax-laws, negotiating tax treaties with foreign governments and participating in inter-ministerial deliberations on economic issues having a bearing on fiscal policies and tax administration. The main responsibility of NBR is to collect domestic revenue (primarily, Import Duties and Taxes, VAT and Income Tax) for the government. Other responsibilities include administration of al l matters related to taxes, duties and other tax producing fees.Under the overall control of IRD, NBR administers the Excise, VAT, Customs and Income-Tax services consisting of 3434 officers of various grades and 10195 supporting staff positions (Approved set up as on 09 Feb. , 2000 AD). Negotiating tax treaties with foreign governments and participating in inter- ministerial deliberations on economic issues having a bearing on fiscal policies and tax administration are also NBR's responsibilities. The main responsibility of NBR is to mobilize domestic resources through collection of import duties and taxes, VAT and income tax for the government.Side by side with collection of taxes, facilitation of international trade through quick clearance of import and export cargoes has also emerged as a key role of NBR. Other responsibilities include administration of matters related to taxes, duties and other revenue related fees/charges and prevention of smuggling. Under the overall control of IRD, NBR administers the excise, VAT, customs and income-tax services consisting of 3434 officers of various grades and 10195 supporting staff positions. National Board of Revenue (NBR), Bangladesh. Page 6 of 31Taxation and its history Taxation- one of the major sources of public revenue to meet a country's revenue and development expenditures with a view to accomplishing some economic and socialobjectives,suchasredistributionofincome,pricestabilizationand discouraging harmful consumption. It supplements other sources of public finance such as issuance of currency notes and coins, charging for public goods and services and borrowings. The term â€Å"Tax† has been derived from the French word â€Å"Taxe† and etymologically, the Latin word â€Å"Taxare† is related to the term ‘tax', which means ‘to charge'.Tax is ‘a contribution exacted by the state'. It is a non-penal but compulsory and unrequited transfer of resources from the private to the public sector, levied based on predetermined criteria. According to Article 152(1) of the Constitution of Bangladesh, taxation includes the imposition of any tax, rate, duty or impost, whether general, local or special, and tax shall be construed accordingly. Rate is a local tax imposed by local government on its residents or the property owners of the locality, a duty is a tax levied on a commodity, and an impost is a tax imposed for an entry into a country.Under the provision of article 83 of the Constitution, â€Å"no tax shall be levied or collected except by or under the authority of an Act of Parliament†. Bangladesh inherited a system of taxation from its past British and Pakistani rulers. The system, however, developed based on generally accepted canons and there had been efforts towards rationalizing the tax administration for optimizing revenue collection, reducing tax evasion and preventing revenue leakage through system loss.Taxes include narcotics duty (collected by the Department of Narcotics Control, Ministry of Home Affairs), land revenue (administered by the Ministry of Land and collected at local Tahsil offices numbered on average, one in every two Union Parishads), non-judicial stamp (collected under the Ministry of Finance), registration fee (collected by the Registration Directorate of the Ministry of Law, Justice and Parliamentary Affairs) and motor vehicle tax (collected under the Ministry of Communication). National Board of Revenue (NBR), Bangladesh.Page 7 of 31 The tax structure in the country consists of both direct (income tax, gift tax, land development tax, non-judicial stamp, registration, immovable property tax, etc) and indirect (customs duty, excise duty, motor vehicle tax, narcotics and liquor duty, VAT, SD, foreign travel tax, TT, electricity duty, advertisement tax, etc) taxes. The present land revenue system of Bangladesh has its base in the East Bengal state acquisition and tenancy act 1950 which established a dire ct contract between the taxpayer and the government.The most important tax on the value of transferred property is the non-judicial stamp tax (levied under the Stamp Act 1899), which has been in existence since January 1899. Current rates of non-judicial stamp duty are provided in the First Schedule of the Finance Act 1998, ranging from Tk. 4 to Tk. 10,000 in case of absolute rate, or from 0. 07% to 1. 5% of the value of consideration in case of ad valorem rate. The judicial stamp tax is being levied under the Court Fees Act 1870, although the levy of court fees originated in the introduction of the Bengal Regulation No. 8 of 1795. The first sales tax was introduced in the former Central Provinces of India in 1938. In Bengal, sales tax was adopted in 1941. In 1948, sales tax was transferred as a central tax under the General Sales Tax Act of 1948. The Sales Tax Act 1951 came into force on 1 July 1951 by repealing the Pakistan General Sales Tax Act of 1948. Until 1982, sales tax was being collected under the 1951 Act, which was replaced by the Sales Tax Ordinance 1982. The VAT law was promulgated by repealing the Business.Income tax was first introduced in the subcontinent by the British in 1860 to make up the revenue deficit caused by the sepoy revolt, 1857. After independence of Bangladesh, income tax was made effective under the Income Tax Act 1922 passed on the basis of the recommendations of the All-India Income Tax Committee appointed in 1921. Currently, income tax has been imposed under the Income Tax Ordinance 1984 (ITO) promulgated on the basis of recommendations of the Final Report of the Taxation Enquiry Commission submitted in April 1979.Income taxpayers (assesses) are classified as individuals, partnership firms, Hindu undivided National Board of Revenue (NBR), Bangladesh. Page 8of 31 families (HUF), associations of persons (AOP), companies (publicly traded and private), local authorities, and other artificial juridical persons. Tax rates and scope of taxable income differ based on residential status of an assesses (resident or non- resident). From fiscal or assessment year, (AY) 2000-01, there is a filing threshold of annual total income of Tk. 00,000 applicable for individuals (including non-resident Bangladeshis), partnership firms, HUF, AOP and assesses other than companies and local authorities. In case an identity of this group has a total annual income less than this level, he is not required to submit tax return but if someone's income is higher, he is to pay a minimum tax of Tk. 1,000. Bangladesh inherited a system of taxation from its past British and Pakistani rulers. National Board of Revenue (NBR), Bangladesh. Page 9 of 31 Tax Authorities of Bangladesh ? There are 3-divisions under the Ministry of Finance (MOF) and Secretary leads each division. ? |The Chairman of NBR (National Board of Revenue) is working |under Internal | | |Resource Division (IRD). | | | | | | | | | | |? |NBR is the apex body of the Tax Admi nistration. | | It consists of two parts: (1) Customs & VAT (2) Income Tax. Both are under the same authority.There are 4-members under NBR. ? Under the NBR, a Commissioner of Taxes is the head of the department and he is in charge of a taxes Zone. There are 8-Zones in Bangladesh. National Board of Revenue (NBR), Bangladesh. Page 10 of 31 [pic] National Board of Revenue (NBR), Bangladesh. Page 11 of 31 Types of Income Income Assessable IncomeNon-Assessable Income Taxable Income Non-taxable Income Income: Income means anything received in cash or in kind unless exempted by laws. 1) Assessable Income: Assessable Incomes are those incomes, which are included in the determination of total income of a taxpayer. ) Taxable Income: Taxable Incomes are those incomes that the tax is to be paid on those incomes. b) Non- Taxable Income: Non – taxable income is taken into total income for taxation rate purpose but no tax is to be paid on this part of income. 2) Non- Assessable Income: Non - assessable incomes are those incomes which are not included in the determination of total income of a taxpayer. National Board of Revenue (NBR), Bangladesh. Page 12 of 31 Classification of Tax systems Classification of Tax System Single Tax Multiple Taxes 1. Single Tax: Only one tax for everybody.Single tax is the poll tax or the head tax or adolescent tax, which is imposed on a person simply because he is there in the society. 2. Multiple Taxes:A system under which different types of taxes shall be levied by the govt. according to suitability. Ex. Income Tax, VAT. National Board of Revenue (NBR), Bangladesh. Page 13 of 31 Types of Taxation Types of Taxation a) Direct Tax b) Indirect Tax a) Progressive Tax b) Regressive Tax c) Proportional Tax a) Direct Tax: Direct tax is a sort of tax the impact of effect incidents and which fall back on the person on whom it is imposed. . e. : Income Tax, Marriage Tax etc. b) Indirect Tax: Indirect taxes are those burden of which can be passed o n others through price vehicles. c) Progressive Tax: The tax rate increases as the taxable income/amount increases. d) Regressive tax: The opposite of a progressive tax is a regressive tax where the tax rate decreases as the taxable income/amount increases. e) Proportional Tax: In between is a proportional tax, where tax is fixed as the amount to which the rate is applied increases. National Board of Revenue (NBR), Bangladesh. Page 14 of 31 MethodologyAmong direct taxes, income tax is one of the main sources of revenue. It is a progressive tax system. Income tax is imposed on the basis of ability to pay. The more a taxpayer earns the more he should pay†- is the basic principle of charging income tax. It aims at ensuring equity and social justice. Sources of Income: For the purpose of computation of total income and charging tax thereon, sources of income can be classified into 7 categories, which are as follows: †¢Salaries †¢Interest on securities †¢Income from house property †¢Income from agriculture †¢Income from business or profession Capital gains †¢Income from other sources. Tax Rate (Assessment Year- 2008-09): Other than Company: For individuals other than female taxpayers, senior taxpayers of 70 years and above and retarded taxpayers, tax payable for the |First |1,65,000/- |Nil | |Next |2,75,000/- |10% | |Next |3,25,000/- |15% | |Next |3,75,000/- |20% | |Rest Amount | |25% |For female taxpayers, senior taxpayers of age 70 years and above and retarded taxpayers, tax payable for the |First |1,80,000/- |Nil | |Next |2,75,000/- |10% | |Next |3,25,000/- |15% | National Board of Revenue (NBR), Bangladesh. Page 15 of 31 |Next |3,75,000/- |20% | |Rest Amount | |25% |Minimum tax for any individual assesses is Tk. 2,000 Non-resident Individual25% (other than non-resident Bangladeshi) For Companies Publicly Traded Company27. 5% Non-publicly Traded Company37. 5% Bank, Insurance & Financial Company 45% Mobile Phone Operator Compan y45% If any publicly traded company declares more than 20% dividend, 10% rebate on total tax is allowed. Tax Rebate for investment: Rate of Rebate: Amount of allowable investment is either up to 25% of total income or Tk. 5,00,000/- whichever is less.Tax rebate amounts to 10% of allowable investment. Types of investment qualified for the tax rebate are: †¢Life insurance premium †¢Contribution to deferred annuity †¢Contribution to Provident Fund to which Provident Fund Act, 1925 applies †¢Self contribution and employer's contribution to Recognized Provident Fund †¢Contribution to Super Annuation Fund †¢Investment in approved debenture or debenture stock, Stocks or Shares †¢Contribution to deposit pension scheme †¢Contribution to Benevolent Fund and Group Insurance premium †¢Contribution to Zakat Fund Donation to charitable hospital approved by National Board of Revenue †¢Donationtophilanthropicoreducationalinstitutionapprovedbythe Gov ernment †¢Donation to socioeconomic or cultural development institution established in Bangladesh by Aga Khan Development Network National Board of Revenue (NBR), Bangladesh. Page 16 of 31 Who should submit Income Tax Return? †¢If total income of any individual other than female taxpayers, senior taxpayers of 70 years and above and retarded taxpayers during the income year exceeds Tk 1,65,000/-. If total income of any female taxpayer, senior taxpayer of 70 years and above and retarded taxpayer during the income year exceeds Tk 1,80,000/-. †¢If any person was assessed for tax during any of the 3 years immediately preceding the income year. †¢A person who lives in any city corporation/paurashava/divisional HQ/district HQ and owns a building of more than one storey and having plinth area exceeding 1,600 sq. feet/owns motor car/owns membership of a club registered under VAT Law. †¢If any person subscribes a telephone. If any person runs a business or profession having trade license. †¢Any professional registered as doctor, lawyer, income tax practitioner, Chartered Accountant, Cost & Management Accountant, Engineer, Architect and Surveyor etc. †¢Member of a Chamber of Commerce and Industries or a trade Association. †¢Any person who participates in a tender. †¢A person who has a Taxpayer's Identification Number (TIN). †¢Candidate for Union Parishad, Paurashava, City Corporation or Parliament. Time to Submit Income Tax Return: For CompanyBy fifteenth day of July next following the income year or, where the fifteenth day of July falls before the expiry of six months from the end of the income year, before the expiry of such six months. For Other than Company Unless the date is extended, by the Thirtieth day of September next following the income year. Consequences of Non-Submission of Return †¢imposition of penalty amounting to 10% of tax on last assessed income subject to a minimum of Tk. 1,000/- †¢In case of a continuing default a further penalty of Tk. 50/- for every day of delay.National Board of Revenue (NBR), Bangladesh. Page 17 of 31 Assessment Procedures: †¢For a return submitted under normal scheme, assessment is made after hearing. †¢For returns submitted under Universal Self Assessment Scheme, the acknowledgement slip is determined to be an assessment order. Universal Self Assessment is of course subject to audit. Appeal against the order of DCT: A taxpayer can file an appeal against DCT's order to the Commissioner (Appeals)/Additional or Joint Commissioner of Taxes (Appeals) and to the Taxes Appellate Tribunal against an Appeal order. Tax withholding functions:In Bangladesh withholding taxes are usually termed as Tax deduction and collected at source. Under this system both private and public limited companies or any other organization specified by law are legally authorized and bound to withhold taxes at some point of making payment and deposit the same to the Go vernment Exchequer. The taxpayer receives a certificate from the withholding authority and gets credits of tax against assessed tax on the basis of such certificate. Heads of Income Subject to deduction or collection of income tax at source with specified rates of deduction. |No. Heads |Section/Rule |Rate |Chalan in the | | | | | |name of | |1 |Salaries | | |Respective | | | |Section 50 |deduction at average rate |Zone | |2 |Discount on the real value of | |deduction at normal rate or maximum rate |LTU | | |Bangladesh Bank Bills |Section 50A |whichever is greater. | |3 |Interest on securities |Section 51 |10%on interest or discount |LTU | |4 |Supply of goods and execution of | |nil up to 1 lac, 1-5 lacs |Zone-2 (Partly) &| | |contracts and sub-contracts |Section |(1%), 5-15 lacs (2. 5%), 15- |LTU | | | |52(Rule 16) |25 lacs 3. 5% and 25 lacs and above | | | | | |(4%) | | National Board of Revenue (NBR), Bangladesh. Page 18 of 31 |5 |Indenting commission / Shipping | |3. 5% of the to tal receipt of indenting |Zone-2 | | |agency commission |Section 52 (Rule 17) |commission & 5% of total Shipping agency | | | | |commission receipt | | |6 |Royalty, Fees for professional or | | |Zone-8 | | |technical services |Section 52 A |10% of the fees | | |7 |Stevedoring agency & Security |Section 52 | |Ctg. Zone- | | |service |AA |7. 5% of the fees |2 | |8 |C & F agency commission |Section 52 | |Zone-2 | | | |AAA |7. 5% of the fees | | |9 |Sale of bandrolls ( for biri) | | |Respective | | | |Section 52B |6% of the value of bandrolls. Zone | |10 |Compensation for acquisition of | |6% of the compensation money |Zone-2 | | |property |Section 52C | | | |11 |Interest on saving instruments | |10% of the amount of interest (Current |Zone-2 | | | |Section 52D |rate) | | |12 |Collection of tax from brick | |1 Sec. = Tk. 10,000/ for each brick field. |Respective | | |manufacturers | |1. 5 Sec. = Tk. 2,000/ for each brick |Zone | | | | |field. | | | | |Section 52F |2 Sec. = Tk. 18,000/ f or each | | | | | |brick field. | | |13 |Commission on Letter of | |5% of the amount of commission. |LTU | | |Credits |Section 52I | | | |14 |Issuing & Renewal of trade | Tk 500/- For renewal of each |Zone-3 | | |licence |Section 52K |Lincence | | |15 |Trustee fees |Section 52L |10% | | |16 |Frieght Forward agency | | | | | |Com. |Section 52M |7. 5% | | |17 |Rental power |Section 52N |4% | | |18 |Import of goods |Section 53 (Rule17A) | |Zone-2 | | | | |3% of the value of imports. | |19 |Income from house property (house | |No deduction if monthly rent is below |Zone-2 | | |rent) | |20,000/- |Dha & Other | | | |Section 53A (Rule17B)|3% (if monthly rent is |outside | | | | |20,000-40,000 Tk. ) and |Zone | | | | |5% (if monthly rent is above | | | | | |40,000 Tk. | | |20 |Shipping business of resident | | |Zone-2,ctg | | | |Section 53AA |5% of freight | | |21 |Export of manpower |Section 53B (Rule | |Zone-2, dhk & ctg| | | |17C) |10% of the service charges. | | |22 |Export of Knitwear |Section 53BB |0. 25% |Zone-5 | |23 |Member of Stock |Section | |Zone-7 | | |Exchange |53BBB |0. 015% | | |24 |Export of goods except |Section |0. 25% |Zone-5 | National Board of Revenue (NBR), Bangladesh. Page 19 of 31 |Knitweare & Woven garments |53BBBB | | | |25 |Sale of goods by public auction |Section 53C (Rule | |Zone-2 | | | |17D) |5% of the sale price | | |26 |Courier Service (Non- resident) | | |Zone-6 | | | |Section 53CC |7. 5% | | |27 |Payment to film actors and actresses| |5% of the amount paid exceeding |Zone-2 | | | |Section 53D (Rule |Tk. 6000/- | | | | |17E) | | | |28 |Cash subsidy |Section 53DD |5% |Zone-5 | |29 |Commission Fees or discount paid to| | |Zone-2 & LTU | | |distributors |Section 53E (Rule |7. 5% of the amount of commission. | | | | |17G) | | | |30 |Commission or charges paid to the | | |Dhk. Zone- | | |agents of foreign buyers | | |6, | | | | | |Ctg.Zone-3 and | | | | |4 % on the amount of commission or charges. |Zone of | | | |Section 53EE | |Respect ive | | | | | |Division | |31 |Interest on bank deposits |Section 53F (Rule |10% of the amount of interest. |Zone-1 | | | |17H) | | | |32 |Real Estate & Developers | |In case of Bldg. 250 per sq. eter |Zone-5 | | | | |In case of land 5% of deed value | | | | |Section 53FF | | | |33 |Insurance commission | |3% on the amount of commission |LTU | | | |Section 53G | | | |34 |Commission paid to the Surveyors of | | |Dhk. Zone- | | |General Insurances | | |2, | | | | | |Ctg. Zone-3 and | | | | |7. 5% on the amount of commission. Zone | | | |Section 53GG | |of | | | | | |Respective | | | | | |Division | |35 |Transfer of property |Section 53H (Rule |5% of the value of the property. |Survey | | | |17I) | |Zone | | |Interest on Post Office | |No deduction if the amount of interest does|Zone-2 | | |Savings Bank Account | |not exceeds Tk. 1,50,000 and if exceeds | | | | |Section 53I |then 10% on the amount of interest . | | |36 |Rent of vacant land, plant and | No deduction if monthly rent is b elow |Zone-2 | | |machinery | |15,000/- | | | | |Section 53J (Rule |3% (if monthly rent is | | | | |17BB) |15,000 -30,000 Tk. ) and | | | | | |5% (if monthly rent is above | | | | | |30,000 Tk. ) | | National Board of Revenue (NBR), Bangladesh. Page 20 of 31 |37 |Advertising bill of news paper, | | |Zone-5 | | |magazine, private television | |3% of the value of the property. | | |channel |Section 53K | | | |38 |Dividend | | |LTU (only LTU’s | | | | |(1) Resident individual 10%, non-resident |files) all others| | | |Section 54 |individual 25% (2) Company 15% |Zone-2 | |39 |Income from lottery |Section 55 |20% of the amount won. |Zone-2 | |40 |Income of non-resident Other than | |Company – rate applicable to the com. Other|Zone-6 | | |non- resident Bangladeshi} |Section 56 |than company – maximum rate. | | Major areas for final settlement of tax liability:Tax deducted at source for the following cases is treated as final discharge of tax liabilities. No additional tax is charged or refund is allowed in the following cases:- †¢Supply or contract work †¢Band rolls of hand made cigarettes †¢Import of goods †¢Transfer of properties †¢Export of manpower †¢Real Estate Business †¢Export value of garments †¢Local shipping business †¢Royalty, technical know-how fee †¢Insurance agent commission. †¢Auction purchase †¢Payment on account of survey by surveyor of a general insurance company †¢Clearing & forwarding agency commission. †¢Transaction by a member of a Stock Exchange. †¢Courier business †¢Export cash subsidy Tax Recovery System:In case of non-payment of income tax demand the following measures can be taken against a taxpayer for realization of tax:- †¢Imposition of penalty †¢Attachment of bank accounts, salary or any other payment. †¢Filing of Certificate case to the Special Magistrate. National Board of Revenue (NBR), Bangladesh. Page 21 of 31 Advanc e Payment of Tax: Every taxpayer is required to pay advance tax in four equal installments falling on 15th September; 15th December; 15th March and 15th June of each year if the latest assessed income exceeds Taka three lakh. Penalty is imposed for default in payment of any installment of advance tax. Fiscal incentives : Following are fiscal incentives available to a taxpayer: )Tax holiday: Tax holiday is allowed for industrial undertaking, tourist industry and physical infrastructure facility established between 1st July 2008 to 30th June 2011 in fulfillment of certain conditions. Industrial Undertaking Eligible for Tax holiday: (i)An industry engaged in production of textile, textile machinery, jute goods, high value garments, pharmaceuticals, melamine, plastic products, ceramics, sanitary ware, steel from iron ore, MS Rod, CI Sheet, fertilizer, insecticide & pesticide, computer hardware, petro-chemicals, agriculture machinery, boilers, compressors, basic raw materials of drugs, c hemicals and pharmaceuticals. (ii)An industry engaged in agro-processing, ship building, diamond cutting. Physical Infrastructure Eligible for Tax holiday:Sea or river port, container terminals, internal container depot, container freight station, LNG terminal and transmission line, CNG terminal and transmission line, gas pipe line, flyover, mono rail, underground rail, telecommunication other than mobile phone, large water treatment plant & supply through pipe line, waste treatment plant, solar energy plant, export processing zone. Tourism Industry Eligible for Tax holiday: Residential hotel having facility of three star or more. b)Accelerated depreciation: Accelerated depreciation on cost of machinery is admissible for new industrial undertaking in the first year of commercial production 50%, in the second year 30% and in the third year 20%. )Income derived from any Small and Medium Enterprise (SME) engaged in production of any goods and having an annual turnover of not more than taka twenty four lakh is exempt from tax. d)Industry set up in EPZ is exempt from tax for a period of 10 years from the date of commencement of commercial production. e)Income from fishery, poultry, cattle breeding, dairy farming, horticulture, floriculture, mushroom cultivation and sericulture are exempt from tax up to 30th June, 2011, subject to investing at least 10% of the exempted income that exceeds one lakh Taka, in government bonds. National Board of Revenue (NBR), Bangladesh. Page 22 of 31 f)Income derived from export of handicrafts is exempted from tax up to 30th June, 2011. )An amount equal to 50% of the income derived from export business is exempted from tax. h)Listed companies are entitled to 10% tax rebate if they declaredividend of 20% or more. i)Income from Information Technology Enabled Services (ITES) business is exempted up to 30th June, 2011. Avoidance of Double Taxation Agreement: There are agreements on avoidance of double taxation between Bangladesh and 28 co untries which are:- (01) United Kingdom of Great Britain and Northern Ireland (02) Singapore (03) Sweden (04) Republic of Korea (05) Canada (06) Pakistan (07) Romania (08) Sri Lanka (09) France (10) Malaysia (11) Japan (12) India (13) Germany 14) The Netherlands (15) Italy (16) Denmark (17) China (18) Belgium (19) Thailand (20) Poland (21) Philippines (22) Vietnam (23) Turkey (24) Norway (25) USA (26) Indonesia (27) Switzerland (28) Oman. National Board of Revenue (NBR), Bangladesh. Page 23 of 31 Steps for collecting Income Tax in Bangladesh Submission of income tax returns is generally due by: > 30th September in case of non-companies and > 31st December in case of companies. Assessment is made in several procedures. They are: ? Self assessment ? Presumptive assessment ? Spot assessment ? Pre-audit based assessment. However, certain percent of self assessment cases are selected for audit.Assesses can prefer appeal if aggrieved by his assessment. There are three primary forums for a ppeal. They are to the Appellate Commissioner/Additional Commissioner/Joint Commissioner or to the Commission for reviews. The decisions of Appellate Commissioner/Additional Commissioner/Joint Commissioner can be challenged to the next Appellate Court named as Appellate Tribunal. Withholding tax is levy able on a number of items including contractors, imports, transfer of urban land/building, bank deposits etc. National Board of Revenue (NBR), Bangladesh. Page 24 of 31 Procedure of Assessment Generally the followings steps are followed in case of Assessment of theCompany and the Corporation: Step-1 Computation of Business Income Step-2 Computation of Total Income Step-3 Determination of Total Tax Liabilities Step-4 Determination of Net Tax Liabilities According to Sections 28, 29 and 30 of ITO, 1984 Income from business is to be calculated after considering admissible and inadmissible expenses to this end. Total Income of the Company is to be calculated by adding other income with i ncome from business. Total Tax liabilities are to be determining by applying prescribed tax rate. Net Tax liability is to be ascertained by deducting the following tax rebate from Total Tax liabilities: >10% Tax rebate on foreign income Tax rebate on increased production in case of industrial company, if applicable. >Tax rebate on export income (at rate applicable) >Tax rebate and average rate on tax free income. National Board of Revenue (NBR), Bangladesh. Page 25 of 31 Problems for collecting Income Tax Tax avoidance is one of the main problems for collecting Income Tax by the Income Tax Authority in Bangladesh. It is the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts to not pay taxes by illegal means. The term tax mitigation is a synonym for tax avoidance.Its original use was by tax advisors as an alternative to the pejorative term of tax avoidance. Latterly the term has also been used in the tax regulations of some jurisdictions to distinguish tax avoidance foreseen by the lawmakers from tax avoidance which exploits loopholes in the law. Based on these concepts arises the pillars of Tax Protesters as well as Tax Resistance: Some of those attempting not to pay tax believe that they have uncovered interpretations of the law that show that they are not subject to being taxed: these individuals and groups are sometimes called tax protesters. An unsuccessful tax protestor has been attempting openly to evade tax, while a successful one avoids tax.Tax resistance is the declared refusal to pay a tax for conscientious reasons (because the resister does not want to support the government or some of its activities). Tax resistors typically do not take the position that the tax laws are themselves illegal or do not apply to them (as tax protesters do) and they are more concerned with not paying for particular gover nment policies that they oppose. National Board of Revenue (NBR), Bangladesh. Page 26 of 31 Responses to tax avoidance: Avoidance also reduces government revenue and brings the tax system into disrepute, so governments need to prevent tax avoidance or keep it within limits. The obvious way to do this is to frame tax rules so that there is no scope for avoidance. In practice, this has not proved achievable nd has led to an ongoing battle between governments amending legislation and tax advisors' finding new scope for tax avoidance in the amended rules. Tax evasion: By contrast, tax evasion is the general term for efforts by individuals, firms, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability, and includes, in particular, dishonest tax reporting (such as declaring less income, profits or gains than actually earn ed; or overstating deductions). Illegal income and tax evasion:Who earn income by illegal means (gambling, theft, drug trafficking etc. ) is required to report unlawful gains as income when filing annual tax returns. Suspected lawbreakers have therefore been charged with tax evasion when there is insufficient evidence to try them for their non-tax related crimes. Other times, tax evasion can be used as a â€Å"one more nail in the coffin† by prosecutors by stating that if a person earns illegal income, s/he may also be guilty of tax evasion. Those who attempt to report illegal income as coming from a legitimate source could be charged with money laundering. National Board of Revenue (NBR), Bangladesh. Page 27 of 31 Evasion of Value Added Tax (VAT):During the latter half of the twentieth century, Value Added Tax (VAT) has emerged as a modern form of consumption tax through the world. Producers who collect VAT from the consumers may evade tax by under-reporting the amount of sa les. Control of evasion: Level of evasion depends on a number of factors one of them being fiscal equation. People's tendency to evade income tax declines when the return for due payment of taxesisnotobvious. Evasionalsodependsontheefficiencyofthetax administration. Corruption by the tax officials often render control of evasion difficult. Tax administrations resort to various means for plugging in scope of evasion and increasing the level of enforcement.Public opinion on tax avoidance: Tax avoidance may be considered to be the dodging of one's duties to society, or alternatively the right of every citizen to structure one's affairs in a manner allowed by law, to pay no more tax than what is required. Attitudes vary from approval through neutrality to outright hostility. Attitudes may vary depending on the steps taken in the avoidance scheme, or the perceived unfairness of the tax being avoided. Corruption by tax officials: Corrupt tax officials cooperate with the tax payers who int end to evade taxes. When they detect an instance of evasion, they refrain from reporting in return for illegal gratification or bribe.Corruption by tax officials is a serious problem for the tax administration in a huge number of underdeveloped countries. National Board of Revenue (NBR), Bangladesh. Page 28 of 31 The distinction in various jurisdictions of Tax Evasion and Tax Avoidance: The use of the terms tax avoidance and tax evasion can vary depending on the jurisdiction. In general, the term â€Å"evasion† applies to illegal actions and â€Å"avoidance† to actions within the law. The term â€Å"mitigation† is also used in some jurisdictions to further distinguish actions within the original purpose of the relevant provision from those actions that are within the letter of the law, but do not achieve its purpose. National Board of Revenue (NBR), Bangladesh. Page 29 of 31 ConclusionThough the rate of tax revenue is to GDP is very negligible, despite the gover nment is trying to maximize its tax revenue through different method. But the government should also remind the cannon of convenience while collecting tax from assesses. As we are living in a civilized society – should come forward to pay taxes to government in order to conduct the administrative, defense and development activities of the country. Otherwise we would not be able to prove ourselves as civilized people. Tax is the most important in the hand of the government to control the economy as well as the inflection. It also helps in push money to the economy, develop certain source of the economy and control some other activities of the economy.No Government can run it’s and perform administration works without collecting tax as a source of revenue. So, the Government imposes tax over the company and the corporations. On the other hand Government can also intensive to the infant and certain basic industry for protection through its tax policy. National Board of Re venue (NBR), Bangladesh. Page 30 of 31 ? The End ? National Board of Revenue (NBR), Bangladesh. Page 31 of 31 ———————– [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [? ] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic]