NBR blocks share transfers by seven corporate giants

In a bid to ensure tax compliance, the National Board of Revenue (NBR) has directed the office of the Registrar of Joint Stock Companies & Firms (RJSC) to freeze the transfer of shares of seven conglomerates, including S Alam and Beximco Group, which have thrived under the Awami League rule.

The NBR instructed the RJSC to immediately block any sales or transfers of shares, whether through donations or otherwise, by Bashundhara Group, Orion Group, Summit Group, Beximco Group, S Alam Group, Nassa Group, and Third Wave Technologies Ltd (Nagad Ltd), according to a letter from its Central Intelligence Cell (CIC).

The CIC said that under the Income Tax Act, it has the authority to block or seize taxpayers' properties temporarily to prevent tax evasion.

"There are serious allegations of financial irregularities, including tax evasion, against these companies. Your cooperation is crucial for the national interest."

A senior NBR official confirmed the move.

The tax office's directive follows a request made over a month ago for banks to provide account details of the heads of five major business groups to assess their tax compliance.

The individuals in question are Salman F Rahman, vice-chairman of Beximco Group, Nazrul Islam Mazumder, chairman of Nassa Group, Mohammed Aziz Khan, chairman of Summit Group, Ahmed Akbar Sobhan, chairman of Bashundhara Group, and Mohammad Obaidul Karim, chairman of Orion Group.

The NBR sought information on term deposits, savings accounts, current accounts, loan accounts, foreign currency accounts, credit cards, lockers, and vaults owned by these business leaders and their family members, starting from July 1, 2015.

In a separate move in August, two NBR field offices also requested banks to provide account details of Chattogram-based businessman Mohammed Saiful Alam, chairman of S Alam Group, and his family members.

Additionally, the VAT Commissionerate Chattogram formed four teams to audit the VAT compliance of 18 concerns under the S Alam Group.

In a notice issued in August, the tax authority revealed that CIC had launched a special inquiry into allegations of tax evasion against individuals who had amassed significant wealth.

The NBR aims to detect tax evasion through this special investigation, in line with the Income Tax Act 2023 and the Money Laundering Prevention Act 2012