15 percent institutional undisclosed assets in favor of ICAB

The Institute of Chartered Accountants of Bangladesh (ICAB) has cleared the opportunity given to legalize the undisclosed assets of the organization by paying 15 percent tax in the proposed budget of the next fiscal year 2024-25. However, the ICAB has not given any opinion on allowing the individual undisclosed income to be legalized without question.

Mohammad Forkan Uddin, president of the organization of chartered accountants, said that the government is trying to bring financial reporting to a fair position. Trying to ensure corporate governance. The government has taken this initiative because it is trying to bring accountability to one place.

He said these things in response to a question from reporters at a press conference organized on Saturday (June 8) to highlight the views of chartered accountants on the proposed budget.

The ICAB president said, we have seen the trend of preparing 2, 3, 4 financial reports before the Document Verification System (DVS) is in place till 2020. It has decreased since 2020. What was the base financial report for the financial report prepared after 2020? It was the base financial report that they submitted to the tax site. He has to continue because of the tax system.

He said, because our society had a culture, which we could not avoid till then. Neither the government could, nor we could. We could not address there until 2020. In 2020, ICAB tried to curb it by doing DVS on its own initiative with the National Board of Revenue (NBR).

While attempting to carve out, base financial reporting and forward financial reporting, it has some undisclosed assets that cannot be addressed. Whether it was assets procured 10 years ago or assets procured 15, 20 years ago, it was not disclosed in its financial statements.

Mohammad Forkan Uddin said, now whenever the government has gone to carbout, so that no asset is hidden anymore, what happened immediately is that the old assets remain, they cannot be shown in the ultimate financial statement even if they don’t want to. If you want to show that our current tax law, the tax file is open for 7, 8, 10 years behind, which creates business complications. The government has been trying to curb it for a long time.

He said, since 2020, the government was trying how to bring it to a fair position with an indemnity. The government probably did it for that purpose. Because in order to do this, what will happen now is the assets that they could not show 15, 20, 30 years ago, now they will show these assets with 15 percent tax.

Government is trying to bring it to fair position. The government has taken this initiative as it is trying to encor corporate governance, bringing accountability to one place.

How many organizations have such resources? When asked such a question, he said, I can’t say it at the moment. Because we don’t have such data.

ICAB’s former president and council member also attended the press conference. Humayun Kabir, vice president ABM Lutful Hadi, former president and council member. Moniruzzaman, ICAB Chief Executive Officer (CEO) Snehashish Barua and others.