The National Board of Revenue (NBR) has launched a nationwide campaign to strengthen oversight of withholding tax compliance, deploying special teams across its tax zones to verify whether taxes deducted at source are being properly collected and deposited.
In a statement issued on Saturday, the revenue authority reminded businesses and taxpayers of the legal powers granted to tax officials under Section 147 of the Income Tax Act 2023, saying the provision allows inspections aimed at ensuring compliance with tax laws.
Under the legislation, authorised tax officials may enter business premises, offices and other commercial establishments to examine records related to economic activities. These inspections can include reviewing books of accounts, vouchers, bank statements, receipts and other financial documents relevant to tax administration.
The law also permits officials to inspect digitally stored information, including records held on computer systems, cloud servers and electronic devices. Where required during an inspection, they are authorised to access information protected by passwords or encryption in order to verify tax-related records.
As part of the verification process, officials may temporarily take custody of account books, documents, electronic records or devices if the action is considered necessary to confirm whether withholding taxes have been correctly deducted and paid.
They are also permitted to make copies of records, collect images of documents and place official identification marks or seals on relevant materials.
The NBR said, "These measures are intended to improve compliance with withholding tax obligations and strengthen revenue collection across the country.”
The revenue authority also warned that Section 147(2) of the Income Tax Act provides for penalties against individuals or organisations that obstruct tax officials or refuse to cooperate during inspections carried out under the law.
To avoid complications, the NBR urged taxpayers and withholding entities to deposit taxes deducted at source into the government treasury through the e-Challan system.
It advised taxpayers to ensure that they include the correct legal provision and relevant economic code when making payments.
The authority further said anyone experiencing uncertainty, operational difficulties, alleged harassment or other concerns relating to the implementation of Section 147 may seek assistance from the Member Secretary of the NBR Committee on Section 147 through the dedicated email address provided by the revenue board, which is- [email protected]
The latest move reflects the NBR’s efforts to strengthen tax compliance and improve transparency in Bangladesh’s revenue collection system as it seeks to enhance government revenues through more effective enforcement of existing tax laws.
