State-run Sonali Bank has proposed the National Board of Revenue (NBR) for exempting it from income tax on a Tk 65.74 billion amortised amount that can be treated as allowable expenses.

Earlier, Sonali Bank amortised its goodwill amount of Tk 65.74 billion for the years 2008, 2009, 2010 and 2011.

Newly appointed Managing Director and CEO Pradip Kumar Dutta sent a letter last week to NBR Chairman Dr Nasir Uddin Ahmed through Banking Division in this regard.

Amortisation means a periodic payment plan to pay a debt or accumulated loss in which the interest and a portion of the principal is included in each payment by an established mathematical formula and the accumulated loss amount is treated as goodwill.

When the country’s largest bank was turned into company in the year 2007, its accumulated losses were estimated at Tk 65.74 billion which was treated as goodwill, said a senior official banking division.

The Daily Sun/Bangladesh/ 3rd July 2012