Questionnaire on corporate tax audit: RMG sector of Bangladesh

This questionnaire is developed only for researching purpose for a course titled “Audit and taxation”. You
are requested to go through the questions and choose the appropriate answer.

Thank you for your time.

1. Name:

2. Designation:

3. What is the procedure of taxation of your company?

4. Have you any SRO (Statutory Regulatory Orders) against of your company for tax exempted?

 Yes
 No

5. What is your present corporate tax rate?

 35%
 25%

6. Do you submit your withholding tax return in every session (U/S-75A)?

 Yes
 No

7. Do you apply depreciation rate in tax audit report as per 3 rd schedule of ITO 1984 or as per your
internal fixed assets policy?

 As per 3rd schedule of ITO 1984

 As per internal policy

8. Do you have any deferred Tax?

 Yes
 No
9. Do you handle your tax procedure with tax office through internal employee or external
consultancy firm?

 internal employee
 External consultancy firm

10. What is your tax day?

 15th January
 15th September

11. What types of documents submit with tax return?

12. Do you deduct tax deducted at source (TDS) against payment?

 Yes
 No

13. Do you regularly payment Advance Income tax (AIT)?

 Yes
 No

14. Do you close your assessment of last financial year?

 Yes
 No

10.The existing tax audit procedure in Bangladesh is not effective.There are so many problems like -
the tax office's employees is not ethically honest ,there are so many systematic problems,re -
arrangement problems etc.

12.Yes,I faced but this situation in confidential . I don't want to express it.
 14.Yes,sometimes we have to face so many problems like - To obtain tax clearance certificate ,we
have to pay big amount of money .

Corporate Tax Audit: Evidence from RMG sectors of Bangladesh

Recommendation:

In the context of Bangladesh, there is an urgent need to promote the transparency and accountability of
tax audit policies in our country. While a number of reforms have been commenced in recent years, the
RMG sector of Bangladesh needs to be more active to ensure the implementation of these initiatives in a
timely manner. From the perspective of Bangladesh and in the context of promoting a fair corporate tax
audit system, the following recommendations are relevant:

 The enactment of monitoring and accountability mechanism in a clear way needs to be ensured.
Towards this end, the government agencies need to ensure sincerity, reliability and timeliness of
the tax related data.

 Tax related data also needs to be published in a user friendly manner. To make use of information
technology in tax governance and make sure to published the information in particular sector.

 The tax system should be transparent and inclusive so that the particular sector like RMG can
easy access to detailed information on tax pay system. Importantly, this information must be
presented in a way that is meaningful and understandable.

 Tax enforcement should be fair, so that every taxpayer is treated equally according to the law.

 To have ensured flexibility to allow for unusual audit issues, adequacies of internal controls and
also ensure the adequacy of books records.

 The taxpayers and the tax auditors both party have to more progressive by establishing a well
functioning tax mechanism.

Conclusion:

Taxation is essential to boost the basic function of a sustainable state and to create the context for
economic growth. A developed tax system is the key to financing public services, reducing inequality,
making government more answerable, and helping to improve self-reliance. The corporate tax system in
the RMG sector of Bangladesh is gradually developing, raising more revenue, and reducing the
dependency on aid. The report reveals the situation in Bangladesh corporate tax system and provides a set
of recommendations. This paper indicates that fair taxation is possible if the government ensures standard
norms of policy implementation and if it improves the transparency and accountability based on
participatory approaches.

The study finds that there remains a lot to improve in terms of the tax collection to achieve the intended
tax to GDP ratio. Tax exemptions and tax evasion in general also contribute to the low revenue
compactness. Tax reformation is an overwhelmingly political challenge as vested interests strongly resist
reform. The tax system continues to suffer from biased enforcement, widespread corruption, and the
failure to translate the tax revenues into public services. Better political leadership and assurance are
needed to overcome the governing challenges. So, the role of every particular sector must be to originate
broad-based political pressure for reform by actively involving a wide public constituency, while the
government must be willing to resort to fair tax policies and practices. The construction of institutions
that are uncommitted and easily monitored is an important strategy for restraining corruption and abuse.
This should include clear processes and regulations, accompanied by dedicated enforcement capacity.
Transparency and inclusiveness are essential in fair corporate tax audit systems. This implies that citizens
should have detailed information about how taxes are assessed, how much tax revenue is collected, and
how that revenue is used. Measures to enable citizens to monitor the fairness of tax collection efforts and
expenditure are crucial.

To conclude, the report covers the corporate tax audit system in the RMG sector of Bangladesh and that it
provides valuable recommendations for policy-makers and citizens. If the tax system is Bangladesh is to
be improved based on equity, these recommendations must be implemented at all levels of the tax
administration