Course No.

MPA 605: Taxation

Department of Accounting & Information Systems

Faculty of Business Studies, University of Dhaka
Master of Professional Accounting (MPA) Program
Semester: January-June 2021 [w.e.f. 05.03.2021]
Course No. MPA 605: Taxation
Course Teacher: Class Schedule:
Prof. Dr. Swapan Kumar Bala, FCMA Friday: 09:30am~12:30pm
Office Room # 331, Business Studies Bhaban Other day: on arrangement
Tel: 9661920-73/7891 (Off), Cell: 01714377811
E-mail: balaswapan@gmail.com Venue: Room # 5002, MBA Building
Course Objectives: The fundamental objective of this course is to develop knowledge and skills
relating to the taxation systems in Bangladesh as applicable to individuals and companies with
practical insights. This course will provide the core knowledge of the underlying principles and major
technical areas of taxation as they affect the activities of individuals and businesses.
Learning Outcomes: On successful completion of this module, students will be able to:
• understand the taxation systems in Bangladesh with its scope;
• describe how taxation in Bangladesh is applied to the income, expenditure, assets, liabilities
or transactions with practical insights;
• describe the basic system of administration relating to taxation in Bangladesh;
• explain and compute the effects of indirect taxes on incorporated and unincorporated entity
• compute direct tax liability for individual;
• Identify and explain the obligations of tax payers and/or their agents and the implications of
non-compliance; and
• explain the ethical and professional issues for a tax manager undertaking tax work.
Class Schedule:
Session Topic
01-02 A. Taxation Systems in Bangladesh
Evolution of taxation system in Bangladesh; Tax structure in Bangladesh; Different types
of taxes in Bangladesh with their merits & demerits and general objectives; Canons of
taxation for a tax system; Overall function and purpose of taxation in developing economy
like Bangladesh; Tax in budgetary system of the Bangladesh Government.
B. Taxation of Business Entities – Indirect Taxes
03-05 1. Value Added Tax (VAT): Introduction; Statutory definitions as per the VAT Act;
Evolution and economic rationality of VAT; VAT registration; Imposition of VAT;
Application of VAT Rate; Determination of cost for calculation of VAT with practical
insights; Method and time of payment of VAT; Books and documents required to be
maintained for VAT purpose; Truncated value (Truncated rate of VAT, VAT on certain
services on estimated value addition); VAT deduction/collection at sources; VAT
authorities; Turnover tax (Concept of turnover tax; Enlistment for turnover tax;
Payment of turnover tax; Books and documents to be maintained for turnover tax;
Penalty for false declaration for turnover tax; Differences between VAT and turnover
tax); Input tax; Supplementary duty; Consequences of non-compliance; VAT
administration; appointment; delegation of authorities and powers; Appeal; Revisions
and recovery of claims.
B. Taxation of Business Entities-Indirect Taxes
06 2. Customs Duty: Nature; Scope and importance; Goods dutiable; Goods prohibited;
Various duties under the Customs Act; Rates of duties; Tax points and valuation bases
for customs duty; Duty-drawback and exemptions; Pre-shipment inspection agencies;
Assessment; Penalties and offences; Schedules.
07 3. Excise Duty: Nature; Scope and importance; Dutiable goods/services; Rates of duties;
Tax points and tax-base Excise Duty; Exemptions; Assessment.
4. Other Taxes and Duties: Narcotics and Liquor Duty; Stamp Duty (Non-Judicial);
Land Development Tax; Taxes on Vehicle.

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 Course No. MPA 605: Taxation

Session Topic
C. Taxation of Individuals – Direct Taxation
08 1. Introduction of Bangladesh Income Tax: Scope of Bangladesh income tax; Statutory
definitions and important concepts relating to income tax; Concept of income; Capital
or revenue; Tax and income tax; Different rates of income tax for different assessees;
Some significant issues of income tax (assessment year vs. income year; different
classes of Assessees; Residential status of an assessee; Tax implication of resident or
non-resident).
09 2. Heads of Income and Classification of Income: Statutory heads of income; Heads of
income under income tax returns; Non-assessable income; Tax-free income; Unearned
and earned income; Domestic and foreign income; Regular and casual Income; Charge
of surcharge.
10-12 3. Computation of Head Wise Income: Computation of income under statutory heads:
Salaries, Interest on Securities, Income from house property, Agricultural income,
Income from Business or Profession, Capital gains, and Income from other sources;
Computation of income under other heads: Share of income from firms, Income of
spouse or Minor children and Foreign income.
13 4. Property-related Tax under Income Tax Law: Wealth tax as a surcharge of income
tax based on threshold of Net wealth in income tax return; Tax on deemed income on
unrecorded or Under-recorded or Under-valued or Undisclosed assets; Tax on transfer
of assets.
14 5. Return Submission and Assessment of Individuals: Requirement to file return of
income; Form of return of income; Due date of submission of return of income;
Documents to be submitted along with the return of income; Certificate in place of
return; Filling of revised return; Statement of assets and liabilities and Life Style;
Production of accounts and other documents; Procedure of assessment; Assessment
order and Tax clearance certificate.
15 D. Taxation of Individuals – Gift Tax: Charge of gift tax; Definition and characteristics
of gift; Gifts to include certain transfer; Exemptions from gift tax; Determination of the
value of gifts; Return of gifts; Rates and liability of gift tax; Penalty and prosecution;
Assessment procedures; Gift tax authorities.
E. Rights and obligations of taxpayers and/or their agents and the implications of
non-compliance.
F. Ethical Issues for Individual Tax Planner: Key ethical issues for an individual tax
planner undertaking tax work.
16 G. Workshop and Seminar with Practical Problems

Books Recommended:
H. L. Bhatia, Public Finance (New Delhi: Vikas Publishing House Pvt. Ltd.).
The Income Tax Ordinance 1984 and the Income Tax Rules 1984 (updated).
The Customs Act 1969. The Excise and Salt Act 1944.
The Value Added Tax and Supplementary Duty Act 2012 and the VAT and SD Rules 2016.
The Gift-tax Act 1990. The Finance Acts/Ordinances.
Summary of Taxation Rules in Bangladesh (MCCI, Dhaka).
Individual Assignments: [5 to 7 pages]
(1) Income Tax Incentives for Listing of a Company’s Equity Shares with Stock Exchanges
(2) Salient Statutory Changes in VAT and SD Laws through Budget 2020-21
Submission deadline: First one to be submitted by 30 April 2021; second one by 31 May 2021
Group Term Paper: Group-wise submission [15 to 20 pages]
Topic: Dividend Taxation vs. Dividend Decisions by Listed Companies in Bangladesh
Instructions: Select as many listed companies as the number of students in a group. Based on the
information contained in the Annual Reports and the web-page of the selected companies in the
website of the Dhaka Stock Exchange (www.dse.com.bd), prepare the Term Paper.
Last Date of Submission: 30 June 2021.