NBR to focus on out-of-court settlement of tax disputes to boost revenue
UNB
Publish: 13 Oct 2024, 04:21 PM
Dhaka,
Oct 13 (UNB)- The National Board of Revenue (NBR) is now putting its focus on
settling the long pending cases through Alternative Dispute Resolution (ADR)
system to boost the revenue collection.
The revenue collecting
authority of the country is at unease as the first two months of the running
FY24-25 saw a setback in the collection due to the political unrest, officials
said.
A senior official of the
NBR said that all commission rates have been asked to make a list of long
pending cases which can be settled through the ADR.
The NBR official said
that emphasis had been given to utilise the ADR system to clear these cases.
The official wished
anonymity as he is not authorised to speak on the subject.
In a recent meeting, NBR
Chairman Md Abdur Rahman Khan asked the officials to take effective steps in
this regard, said another official this week.
"The NBR chairman
also asked the officials to take all out efforts to realise the outstanding
taxes," the NBR official said.
The NBR introduced ADR
on July 1, 2012 to speed up disposal of the revenue-related cases through
out-of-court settlement.
ADR is a tool that
parties can use to settle disputes with the help of a third party.
It is used for
disagreeing parties who cannot come to an agreement short of litigation.
However, ADR is also
increasingly being adopted as a tool to help settle disputes within the court
system.
The NBR chairman has
asked the officials concerned to expedite the Alternative Dispute Resolution
(ADR), the NBR official told UNB.
Another senior official
of the NBR said that as per the law taxpayers have to apply to resolve the tax
related disputes. He mentioned that some taxpayers always try to evade tax and
feel encouraged to settle the matter in the courts.
He also said that those
who failed to make any headway in the courts usually come to the ADR system for
resolving their disputes.
An NBR official involved
in the ADR said that due to the reluctant attitude from the businesspeople of
the country the system is yet to give its full swing benefit for them and also
for the national exchequer.
"The NBR has taken
various types of initiatives to vibrant the system, and a former NBR member has
been appointed after forming a neutral cell for this system," he said.
The NBR chairman, while
talking to reporters recently, said ADR is a system where both parties can
avail a win-win chance.
He mentioned that if the
taxpayers and tax authority do not come to a consensus then there is nothing to
do in this ADR system.
"For that reason
many do not want to go to the ADR process," he said.
In this connection, the
NBR chairman pointed out the reluctant attitude of taxpayers and tax collecting
authority as they both want to win it all.
"In ADR system both
have to compromise or both have to sacrifice, that is the meaning of the
ADR," he said.
The chairman mentioned
that those who are involved in the ADR are very much experienced and know the
law very well.
"They try to
convince both parties to come for a consensus. If the taxpayers and tax
collecting authority do not want to go for a long legal battle then ADR is the
best option," the NBR chairman said.
As per available data,
there are more than 27,000 cases pending in various courts related to income
tax, Vat and duty involving not less than Tk 39,000 crore.
END/UNB/FF/F