25 Feb, 2016

Page 1

SECOND EDITION

THURSDAY, FEBRUARY 25, 2016

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Falgun 13, 1422, Jamadiul Awal 15, 1437

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Regd No DA 6238, Vol 3, No 310

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www.dhakatribune.com | 32 pages | Price: Tk10

MNCs abuse relaxed taxation to deprive govt of crucial revenue n Tribune Report Absence of monitoring and failure to extract information have allowed multinational corporations to take supernormal profits back home, particularly from less affluent countries. These, coupled with relaxed taxation treaties between MNCs and governments, have deprived the poorer home countries of much needed revenue, economists say. Renowned economist AB Mirza Azizul Islam said multinational companies evade tax mainly through manipulation of accounts and transfer pricing. “They [MNCs] resort to under-invoicing and over-invoicing to transfer money back to their countries through tax evasion. The government [of Bangladesh] should immediately monitor the matter properly. Although the job is challenging, but the government should give it a try,” he said. According to a report, titled “Mistreated,” published by ActionAid, Bangladesh is at the receiving end of 18 such treaties – the highest in the world, closely followed by Mongolia 15, Pakistan 14 and Ethiopia 13. Sri Lanka is the only other South Asian neighbour of Bangladesh to feature at the top of that list with 11 such treaties. Relaxed deals restrict govern-

Temple vandalised in Panchagarh

ments’ power to properly tax global companies, limiting any country’s potential to utilise revenue and ensure corporate cash flow from poorer to richer countries, worsening inequality and poverty. If the multinational corporations (MNCs) could be properly taxed by the governments of the lesser affluent countries, the money thus realised could have used to improve key public services and reduce poverty, the study says. Among the treaties, a single clause on restricting imposition of withholding taxes on dividend payments costs around $85m losses every year in Bangladesh. With an annual total health expenditure of approximately $25 per capita, remedying this alone could pay for health services for 3.4 million people, the study prescribes. However, as the Bangladeshi experts said, there are more to it for the MNCs than the study reveals. According to officials of the National Board of Revenue (NBR), MNCs evade taxes by abusing transfer pricing in different ways including capital flight, transfer of dividend and profit to its permanent establishments or parent companies, over-invoicing and under-invoicing during transactions of goods and services within their associated enterprises. Officials also said that the  PAGE 2 COLUMN 2

30

Different countries have negotiated dividend tax breaks

23%

Of the population are at risk of hunger (37 million people)

49%

Of children in primary school fail to complete a full five years education

43.3%

Of people live in poverty

COST OF TAX CUTS IN

BANGLADESH

US$85 MILLION

Given away through tax breaks in tax treaties annually

Source: ActionAid, 2014. Factsheet: Bangladesh.

Tigers fizzle out after promising start

Correspondent, n Our Panchagarh

A Hindu temple was attacked and vandalised in Panchagarh's Atwari upazila early yesterday, causing panic to spread among the local Hindus. The attackers, who could not be identified, destroyed a dome, which was part of Sree Sree Hari temple's outer structure.  PAGE 2 COLUMN 5

n Minhaz Uddin Khan

Bangladesh batsman Mushfiqur Rahim looks to the heavens after failing to connect a delivery against India in their Asia Cup Twenty20 opener at Mirpur’s Sher-e-Bangla National Stadium yesterday MAINOOR ISLAM MANIK

In what turned out to be an extremely disappointing batting performance, Bangladesh suffered a 45-run defeat against India in the Asia Cup Twenty20 opener at Mirpur’s Sher-e-Bangla National Stadium yesterday. In reply to India’s 166/6, the Tigers only managed to post 121/7 with  PAGE 2 COLUMN 2

INSIDE A few more months to finish BDR carnage case It may take two or three more months to finish the trial proceedings of the BDR carnage case at the High Court, even though more than a year has passed since the start of the appeal hearing.  PAGE 3

Mir Quasem’s appeal verdict on March 8 The Supreme Court is set to deliver its judgement on March 8 in the appeal case of condemned war criminal Mir Quasem Ali filed seeking acquittal from the charges.  PAGE 5


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