Non-payment of Tk 1.30b tax

The income tax authority attached bank accounts of two subsidiaries of Investment Corporation of Bangladesh (ICB) Thursday for non-payment of tax worth Tk 1.30 billion for long.

ICB Capital Management Limited (ICML) and ICB Securities Trading Company Limited (ISTCL) will not be able to operate their accounts, except for payment of salaries due to bank attachment, officials said.

Large Taxpayers Unit (LTU) under the income tax wing of National Board of Revenue (NBR) sent a letter to the IFIC Bank where the companies have bank accounts as per tax return to attach bank accounts of the two subsidiaries.   

The companies cannot deposit or withdraw money from their bank accounts unless the income tax authority withdraws bank attachment.

ICML owes Tk 780 million and ISTCL Tk 520 million as corporate income tax to the LTU.

Officials issued demand notices asking the companies to clear the arrears that accumulated in the last five years.

Sources said they would wait for payment of the due tax by the companies. Otherwise income taxmen have the authority to collect the arrears directly from the bank accounts.

They said the companies have FDR (fixed deposit receipt) in the IFIC Bank that taxmen can encash in case of delay in paying the tax.    

Despite several attempts, the tax officials could not realise the outstanding tax.

However, salary account of two companies has remained open to help them pay salaries of employees before Eid-ul Fitr.

ISTCL was formed as a part of the restructuring programme of ICB under Capital Market Development Programme (CMDP) initiated by the government and the Asian Development Bank (ADB) and as per power conferred under the ICB Ordinance.

ISTCL provides corporate services including online trading facilities for buying and selling securities listed with the bourses.  

It also works as a full service depository participant in the Central Depository System, performs other brokerage services, trades securities for its own portfolio as authorised dealer of Dhaka Stock Exchange (DSE), and acts as selling agent under 'Direct Listing Regulations 2006'.

ICML obtained licence from the Securities and Exchange Commission to act as Issue Manager, Underwriter, Portfolio Manager and to carry out other merchant banking operations under the Securities and Exchange Commission (Merchant Banker and Portfolio Manager) Regulations, 1996.

It works to underwrite initial public offering of shares and debenture and right issue of shares, issue management, manages investors' account, provides investment counsel to issuers and investors' including financial engineering and corporate advisory services, purchases shares and debentures including placement and equity participation, provide consultancy services for disinvestment programme of the government etc,