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East Delta University School of Business Administration Mba Program
East Delta University School of Business Administration Mba Program
■ The course is intended to give an idea on Corporate Tax Management and Tax Planning.
■ The course includes various aspects of corporate income tax.
■ Tax planning holds an important role for all types of assessees in respect of their
income.
■ The course is designed in such a way that after successful completion of the course the
students would be able to work in corporate sector relating to procedure and
management of corporate sector in the field of taxation.
■ Various process and methods of tax planning as per Income Tax Ordinance 1984 will be
discussed in the said course
Syllabus
■ Chapter-1: Introduction
■ Basics, concepts, objectives, factors, methods, corporation, tax planning, Corporate Tax
Planning, Tax Avoidance, Tax Evasion, Corporate Planning, Different types of Company.
■ Chapter-2: Taxation of Companies (residential status, tax liability)
■ Introduction, determining residential status of corporation and company, assessment of
corporation and company, rate of tax and rebate, procedure of assessment.
■ Chapter-3: Set off and carry forward of losses
■ Introduction, set off losses, carry forward of losses and depreciation, conditions and
limitations of carrying forward of losses.
■ Chapter-4: Appeal and Revision and alternative dispute resolution
■ Appeal: basic premise and grounds, appeal to the appellate joint commissioner of taxes, appeal to the commissioner
of taxes, appeal to the appellate tribunal, reference to the high court division of the supreme court, appeal to the
appellate division of the supreme court, revision, tax settlement commission, alternate dispute resolution.
■ Chapter-5: VAT Management
■ Introduction, reasons for introducing VAT in Bangladesh, definition of VAT, arguments for and against VAT,
procedure of assessment and computation of VAT, features of VAT, tax base of VAT, goods and services subject to
VAT, goods and services exempted from VAT, deduction of VAT at source, submission of VAT return, duties and
penalties under VAT.
■ Chapter-6: Tax Planning
■ Introduction, definition of Tax Planning, principles of tax planning, benefits and limitations of tax planning,
general strategies and policies of tax planning, techniques or methods of tax planning.
■ Chapter-7: Assessment of non-resident, double taxation relief, protection of
information and transfer pricing.
■ Assessment of non-resident, double taxation relief, protection of information of assesse
and confidentiality, transfer pricing.
■ Chapter-8: Tax Holiday
Basic Text:
■ A) Multiple tax system: The tax system of Bangladesh consists of various types of taxes
which are as follows:
■ I. Taxes on Income and Profit
– (i) Income tax – Company (ii) Income tax – Persons other than Company
■ II. Taxes on Property & Capital Transfer
– (i) Estate Duty, (ii) Gift Tax, (iii) Narcotics Duty, (iv) Land Revenue (v) Stamp Duty - non
judicial (vi) Registration
■ III. Taxes on Goods and Services
– (i) Customs Duties, (ii) Excise Duties, (iii) Value Added Tax (VAT), (iv) Supplementary
Duty (on luxury items and in addition to VAT), (v) Taxes on Vehicles, (vi) Electricity Duty
(vii) Other Taxes and Duties (travel tax, turn over tax, etc.)
■ B) Inadequate and stagnant revenue yield relative to GDP:
■ The ratio of tax revenue to GDP is very low comparing to other developing countries.
We can see the status of the ratio of tax revenue to GDP of Bangladesh in the following
table for the last six years:
Table: Revenue Receipt
Table-Item wise revenue collection
■ C) Tax administration in Bangladesh:
■ National Board of Revenue (NBR) is the central authority for tax
administration in Bangladesh and collects almost 80 percent of total revenue
for the country.
– Various reform measures have been taken and still in consideration to
make the tax system of the country more effective and efficient.
■ D) Tax avoidance behavior of the Taxpayers:
■ The heavy reliance on indirect taxation has been treated as one of the main
obstacles in attaining economic progress in Bangladesh since only a few tax
payers share the burden of taxes.
■ Despite NBR's untiring effort, the progress is not still satisfactory.
■ People and corporate firms use various measures to evade tax using loopholes
of the current tax system.
■ E) Narrow Tax base:
■ Our tax base is too narrow and the tax law is full of exemptions and allowances.
■ Agricultural sector provides employment for around 60 percent of the population
contributes only 25 percent of GDP and virtually pays little in the form of income tax.
■ A. Legislation
■ The basic rules of Bangladesh taxation system are based on the
Income Tax Ordinance 1984 and the Income Tax Rules 1984. The
Value Added Tax Act 1991 is the main source of VAT laws.
■ The tax legislation is amended each year by the Finance Act. This
is based on proposals in the Budget each year. The Finance Act
generally relates to the income year and assessment year starting
on July of that year.
– Therefore, the Finance Act 2020 relates mainly to the
assessment year 2020-2021.
■ B. Case law
■ Over the years, many hundreds of tax cases have been
brought before the courts where the interpretation of
statute law is unclear.
■ Decisions made by judges to resolve these cases form
case law.
■ Many judgments are precedent for future cases which
means that they must be followed unless superseded
by legislation or the decision of a higher court.
■ C. NBR Publication
■ The National Board of Revenue (NBR) is a statutory body having
the highest executive authority and empowered to make necessary
rules concerning income tax matters and is authorized to give any
interpretation of any provision in any section of the Ordinance.
■ NBR makes available some forms, notifications, brochures, and
guidelines of income tax, VAT and customs through its websites
and other forms of communication for public at large.
■ There are many Statutory Regulatory Orders (SROs) and circulars
on income tax and VAT published by NBR providing guideline for
tax purpose.
SCOPE OF BANGLADESH INCOME
TAX
■ Some provisions, rules and regulations have to be kept in mind in order
to determine income tax on the income of an assessee in Bangladesh.
They are as follows:
■ (I) The Income Tax Ordinance, 1984: The Income Tax Ordinance, 1984
came into force on 1st July, 1984 as Income Tax Manual I. It has 23
Chapters, 187 sections, numerous subsections and seven schedules
containing provisions regarding assessment, penalty, appeal etc.
■ (II) Income Tax Rules, 1984: Income Tax Rules, 1984 has framed
various rules for the administration of the Income Tax Ordinance, 1984 as
provided therein.
■ (III) Finance Act: To give effect to the various proposals in
the annual budget covering the areas of direct and indirect
taxes, Finance Act is issued.
– It contains various applicable tax rates and other
amendments of the Income Tax Ordinance and Rules, 1984.
■ (IV) SRO (Statutory Regulatory Orders): According to the
Section 185 of the Income Tax Ordinance, 1984, NBR can
issue certain circulars as and when necessary.
– The provisions of these SROs are also to be considered at
the time of computing income tax like the provisions of
Income Tax Ordinance and Rules.
■ (V) Income Tax Case Law: In the course of assessment
proceedings, there may sometimes arise a dispute between the
NBR and the assessee over the interpretation of some of the
provisions of the act and rules.
■ The assessee can go the court objecting the NBR's interpretation,
and the judgments given by the courts act as guidance to the
assessing officers and the assesse in similar circumstances in the
future.
STRUCTURE OF INCOME TAX ORDINANCE, 1984