The government counted as much as Tk 36.44 million in lost revenues as the Standard Chartered Bank did not properly deduct value added tax (VAT) at source for different services it received, an audit has found out.
The Comptroller and Auditor General's Office, after conducting a special audit at the Large Taxpayers Unit of the National Board of Revenue (NBR) for 2006-07 fiscal, unearthed the alleged irregularities and recommended that the money be recovered.
According to the CAG's special report, the multinational bank was supposed to pay Tk 43.71 million in VAT for enjoying different services during the fiscal but paid only Tk 7.27 million, thereby causing a loss of Tk 36.44 million.
It enjoyed services such as consultancy, advertisement, repair and maintenance, security, and entertainment during the fiscal.
Under VAT Act, 1991, clients receiving services are required to deduct VAT at source and submit the money to the exchequer, the report pointed out. "But in this case, VAT was not properly deducted at source and submitted to the exchequer," it observed.
Standard Chartered Bank is the oldest and largest foreign bank in Bangladesh. Having set up its first branch in Chittagong in 1948, it now has 26 branches, 57 ATMs and seven financial kiosks in Dhaka, Chittagong, Khulna, Sylhet, Bogra and Narayanganj.
The bank employs more than 1,300 people.
It is the first international bank to extend credit lines to Bangladesh and open the first external letter of credit (LC) here in 1972.
Stanchart made acquisitions of ANZ Grindlays Bank in 2000 and the commercial banking business of American Express Bank in Bangladesh in 2006, and currently provide both consumer banking and wholesale banking services.
The Comptroller and Auditor General's Office, after conducting a special audit at the Large Taxpayers Unit of the National Board of Revenue (NBR) for 2006-07 fiscal, unearthed the alleged irregularities and recommended that the money be recovered.
According to the CAG's special report, the multinational bank was supposed to pay Tk 43.71 million in VAT for enjoying different services during the fiscal but paid only Tk 7.27 million, thereby causing a loss of Tk 36.44 million.
It enjoyed services such as consultancy, advertisement, repair and maintenance, security, and entertainment during the fiscal.
Under VAT Act, 1991, clients receiving services are required to deduct VAT at source and submit the money to the exchequer, the report pointed out. "But in this case, VAT was not properly deducted at source and submitted to the exchequer," it observed.
Standard Chartered Bank is the oldest and largest foreign bank in Bangladesh. Having set up its first branch in Chittagong in 1948, it now has 26 branches, 57 ATMs and seven financial kiosks in Dhaka, Chittagong, Khulna, Sylhet, Bogra and Narayanganj.
The bank employs more than 1,300 people.
It is the first international bank to extend credit lines to Bangladesh and open the first external letter of credit (LC) here in 1972.
Stanchart made acquisitions of ANZ Grindlays Bank in 2000 and the commercial banking business of American Express Bank in Bangladesh in 2006, and currently provide both consumer banking and wholesale banking services.
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