NBR moves to curb use of fake TINs

The revenue administration has tightened rules to prevent the use of fake taxpayer identification numbers by dishonest people for various purposes, including land and vehicle registration, at public and private agencies.

The National Board of Revenue makes it mandatory for the agencies, such as the land registration office, Bangladesh Road Transport Authority, Registrar of Joint Stock Companies and Firms, banks and insurance companies to verify the electronically generated TINs prior to providing services.

The NBR issued a notice last week. 

"We will allow public and private service providers to access our e-TIN database so that they can check the validity of the 12-digit TINs," said a senior official of NBR, seeking anonymity. "We want to start it within a month."

"We will give priority to BRTA and the land registration authorities, where there are allegations of the use of fake TINs by tax evaders." Taxmen said the measure will plug loopholes and bring more people under the tax net. 

The NBR tightened rules and decided to give greater access to its e-TIN database after it added a provision in the income tax law, making it mandatory for government agencies and private organisations to verify TIN authenticity.

Earlier, the service providers were not bound to verify the TIN certificates submitted by the customers, which created a loophole for tax dodging through fake TINs. 

Dishonest people evaded taxes by submitting fake TINs, in the absence of scope to check the authenticity of TINs online. 

About 16 lakh taxpayers have signed up for e-TINs since the revenue authority introduced the portal in July 2014.

In its latest notice, the NBR asked the authorities not to provide services if the TIN submitted by people is found to be fake.

It also directed the agencies to electronically inform the NBR about the submission of such fake TINs with detailed information, according to the notice.

Taxmen said many people submit fake TINs at banks to avoid payment of additional taxes on interest earnings from their deposits. The practice will stop enabling the tax collector to get more revenue from this source.

TIN certificates are needed to open letters of credit, import registration, issuance and renewal of trade licences, submission of tender documents, registration of land and apartments, registration of vehicles and their fitness renewal, and sanction of loans exceeding Tk 5 lakh.

People are also required to submit TIN certificates to get credit cards from banks, and for registration of a company.

Doctors, chartered accountants, cost and management accountants, lawyers and income tax practitioners also have to submit TIN certificates to get their practising licences.

TIN certificates are needed to obtain drug licences and gas and electricity connections in city corporations and municipalities for commercial purposes.

NBR officials said the tax authority will create an option for these service providing agencies on its webpage developed for online TIN registration.