The Anti-Corruption Commission has ordered the recovery of government tax of Tk 1,113 crore from Summit Power Ltd and Summit Corporation Ltd. At the same time, it has been ordered to recover the said money and inform the ACC.
It has been learned that allegations of revenue evasion of approximately Tk 465 crore against Summit Power Ltd owned by Abdul Aziz Khan and others without deducting tax at source on dividends and Tk 447 crore against Summit Corporation Ltd without deducting tax at source on dividends a total of Tk 1,113 crore.
The decision by the Commission to send a letter to the Chairman, National Board of Revenue to inform the Commission of collecting the arrears of revenue from the accused as the total revenue evasion of Tk 1,113 crore against Summit Power Ltd and Summit Corporation Ltd owned by Abdul Aziz Khan and others has been proven by Central Intelligence Cell (CIC) has been accepted.
Asked how this tax will be recovered or what actions the NBR will take, Dhaka Tax Zone-2 Commissioner Barrister Mutasim Billah Faruqui said, "We are now moving for collection from Summit. A demand notice might be issued in this regard this week."
He said the NBR Chairman directed them to proceed with recovery.
The Summit management has limited scope to contradict the tax demand as it has been settled by the NBR as central authority.
However, the company can lodge appeal or go to tribunal paying 10-per cent tax for lingering the process of tax recovery.
"It was a discriminatory tax privilege enjoyed by Summit as such benefits were not available for similar companies," he added.
Summit Corporation Ltd, one of the country's largest conglomerates, is accused of not deducting the mandatory 15 per cent tax at source when it paid dividends to Summit Power International, a Singapore-based company and its parent entity.
Additionally, Summit Power Ltd allegedly failed to withhold the required tax on dividends paid to Summit Corporation Ltd, which holds a majority stake in the company.
