SC asks Brac to pay Tk 404cr in unpaid tax

The world’s largest non-government organisation Brac will have to pay a due of Tk 404.20 crore in income taxes, which was exempted by
the High Court earlier considering it as a charitable organisation.
A five-member bench of the Supreme Court's Appellate Division led by Chief Justice Surendra Kuma Sinha scraped the previous High Court decision yesterday that exempted the amount.
The tax amount was due for 11 tax years between 1993 and 2012.
The apex court heard arguments on eleven separate government appeals filed against the High Court order of 2014 before deliver the order, Deputy Attorney General Sardar Md Rashed Jahangir told media.
He said that Brac has to pay the income tax of Tk 404.20 crore to the department of taxes following the apex court verdict.
The commissioner of taxes issued 11 notice to the NGO seeking the due money which was challenged by Brac with the High Court.
According to the case statement, a deputy commissioner of taxes fixed the income taxes for Bangladesh Rural Advancement Committee (Brac) for 11 tax-years, which was challenged by the NGO with the taxes appellate commissioner.
The appellate commissioner upheld the deputy commissioner’s decision, which led Brac to move with the taxes appellate tribunal. As Brac did not get the decision in their favor, they moved with the High Court with separate income tax references.
On December 14 in 2014 in its verdict, the court had said that the income tax is eligible to be exempted.
The commissioner of taxes then moved with the Supreme Court against the High Court order with eleven separate leave-to-appeal pleas, which were accepted by the court in September 2015.
It asked to pay half of the amount within a year in four equal installments. The appeal was then forwarded to the regular bench of the appellate division, which was heard yesterday.
One of the Brac counsels, Md. Asaduzzaman, told media that they have already paid a portion of the income tax.
Brac now can file a review petition after the full text of the verdict is out.
UNB adds: BRAC has said its social development programmes across the country and millions of people who benefit from that ‘will not be adversely affected’ by the outcome of the recent court ruling.
“Brac respects the latest ruling by the Supreme Court, the full text of which has not yet reached Brac management. Once this verdict is received, we’ll take legal counsel and decide our next course of action,” it said in a statement on Wednesday night. Brac is a non-profit organisation and the income generated by its social enterprises supports Brac’s social development programmes, it said.

 

 

SC asks Brac to pay Tk 404cr in unpaid tax

The worlds largest non-government organisation Brac will have to pay a due of Tk 404.20 crore in income taxes, which was exempted by the High Court earlier considering it as a charitable organisation. A five-member bench of the Supreme Courts Appellate Division led by Chief Justice Surendra Kuma Sinha scraped the previous High Court decision yesterday that exempted the amount. The tax amount was due for 11 tax years between 1993 and 2012. The apex court heard arguments on eleven separate government appeals filed against the High Court order of 2014 before deliver the order, Deputy Attorney General Sardar Md Rashed Jahangir told media. He said that Brac has to pay the income tax of Tk 404.20 crore to the department of taxes following the apex court verdict. The commissioner of taxes issued 11 notice to the NGO seeking the due money which was challenged by Brac with the High Court. According to the case statement, a deputy commissioner of taxes fixed the income taxes for Bangladesh Rural Advancement Committee (Brac) for 11 tax-years, which was challenged by the NGO with the taxes appellate commissioner. The appellate commissioner upheld the deputy commissioners decision, which led Brac to move with the taxes appellate tribunal. As Brac did not get the decision in their favor, they moved with the High Court with separate income tax references. On December 14 in 2014 in its verdict, the court had said that the income tax is eligible to be exempted. The commissioner of taxes then moved with the Supreme Court against the High Court order with eleven separate leave-to-appeal pleas, which were accepted by the court in September 2015. It asked to pay half of the amount within a year in four equal installments. The appeal was then forwarded to the regular bench of the appellate division, which was heard yesterday. One of the Brac counsels, Md. Asaduzzaman, told media that they have already paid a portion of the income tax. Brac now can file a review petition after the full text of the verdict is out. UNB adds: BRAC has said its social development programmes across the country and millions of people who benefit from that will not be adversely affected by the outcome of the recent court ruling. Brac respects the latest ruling by the Supreme Court, the full text of which has not yet reached Brac management. Once this verdict is received, well take legal counsel and decide our next course of action, it said in a statement on Wednesday night. Brac is a non-profit organisation and the income generated by its social enterprises supports Bracs social development programmes, it said.