ws, Snehasish Mahmud & Co. Appeal - As per ITO 1984 & DTA Presented By: Snehasish Barua, FCA Date: 2 May 2020 AUDIT W TAX Ml CONSULTINGContents Wy, eonNnanr wne Snehasish Mahmud & Co. Appeal against the order of the DCT Appeal against the order of the CT (Appeal) Reference application against the order of the Tribunal Appeal against the order of the High court division of the Supreme Court Summary of Appeal Alternate Dispute Resolution List of countries Bangladesh has signed DTA Major provisions of DTA between Bangladesh and Thailand AUDIT W TAX Ml CONSULTINGws, Snehasish Mahmud & Co. Appeal against the order of the DCT + Appeal to be submitted to the CT (Appeal) against the order of the DCT * Appeal to be filled within 45 days of receiving the Assessment order + Appeal fee Tk 200 + No Tax to be deposited for filing Appeal + No Appeal shall lie if tax u/s 74 has been paid + The CT (Appeal) can confirm, reduce, enhance, set aside or annul the assessment + ‘The Appeal order must be in writing and shall state the points for determination, the decision thereon and the reasons for the decision + The CT(Appeal) will have to finalise the order within 150 days from the end of the month in which appeal was submitted + The CT(appeal) cannot enhance the assessment or penalty or reduce the amount of refund unless the appellant has been given a reasonable opportunity of being heard + The order must be communicated within 30 days. AUDIT TAX ml CONSULTINGAppeal against the order of the Wy, CT (Appeal) Snehasish + Mahmud & Co. + Appeal to be submitted to the Tribunal against the order of the CT (Appeal) + Appeal to be filled within 60 days of receiving the Assessment order + Appeal fee Tk 1,000 + 10% of the disputed tax to be deposited for filing Appeal + There are five Tribunal bences in Dhaka + The CT(Appeal) will have to finalise the order within 6 months from the end of the month in which appeal was submitted + The order must be communicated within 30 days AUDIT W TAX Ml CONSULTINGReference application against the order WS, . Snehasish of the Tribunal Mahmud & Co. + Reference application to be submitted to the High Court Division of the Supreme Court against the order of the Tribunal. + Appeal to be filled within 90 days of receiving the Tribunal order + Appeal fee Tk 2,000 + 15-25% of the disputed tax to be deposited for filing Appeal + There is no time limit for disposal of such application AUDIT W TAX Ml CONSULTINGAppeal against the order of the Wy, High Court Division Snehasish Mahmud & Co. An appeal shall lie to the Appellate Division from any judgement of the High Court Division delivered under section 161 in any case which the High Court Division certifies to bea fit one for appeal to the Appellate Division AUDIT W TAX Ml CONSULTINGws, Summary of appeal pe: Mahmud & Co. Disputed Time Time | Appealto | appeal tanto be | Himitfor | Time limit | limit for Against the be fee | filing | for disposal | communi order of the | submitted deposited | veal cation to (Tk) (m9 PP (days) (days) (days) DCT CT (Appeal) | 100 Nil 45 150 from the | 30 days end of the month appeal submitted CT (Appeal) | Tribunal 1,000 10% 60 180 from the [30 days end of the month appeal submitted Tribunal High Court | 2,000 15-25% 90 N/A N/A division High Court [Appellate |N/A N/A N/A N/A N/A division division AUDIT TAX ml CONSULTINGws, Snehasish Mahmud & Co. Grounds of Appeal CT(A) GoA _template.docx AUDIT W TAX Ml CONSULTINGws, Snehasish Mahmud & Co. Past questions Question no 2 of May-June 2019 Question no 2 of Nov-Dec 2018 Question no 2 of May-June 2018 Question no 2 of Nov-Dec 2017 AUDIT W TAX Ml CONSULTINGAlternative dispute resolution Wy, - new provision Snehasish * Mahmud & Co. Alternative Dispute Resolution Any dispute of an assessee lying with any income tax authority, Taxes Appellate Tribunal or Court may be resolved through Alternative Dispute Resolution Application for alternative resolution of disputes An assessee, if aggrieved by an order of an income tax authority, may apply for resolution of the dispute through the ADR process. An assessee may apply for ADR of a dispute which is pending before any income-tax authority, tribunal or court. All cases dealt with under sub-section (2) are subject to permission of the concerned income-tax authority or the court, as the case may be Provided that after obtaining such permission from the income tax authority, Tribunal or the court and upon granting of such permission, the matter shall remain stayed during the ADR negotiation process. AUDIT TAX ml CONSULTINGAlternative dispute resolution Wy, - new provision Snehasish * Mahmud & Co. ibility for application for ADR The application shall be submitted in such form, within such time, accompanied with such fees and verified in such manner as may be prescribed. An assessee shall not be eligible for application to ADR if he fails to- (a) submit the return of income for the relevant year or years; or (b) pay tax payable under section 74 Appointment of Facilitator and his duties and responsibilities For the purposes of resolving a dispute in an alternative way, the Board may select or appoint Facilitator and determine his duties and responsibilities by rules. Nomination and responsibility of the Commissioner's Representative in ADR The respective Commissioner of Taxes may nominate any income tax authority subordinate to him, not below the rank of Deputy Commissioner of Taxes to represent him in the negotiation process of the ADR. AUDIT TAX ml CONSULTINGAlternative dispute resolution WwW, Snehasish * - hew provision. Mahmud & Co. Procedures of disposal by the Alternative Dispute Resolution. Upon receiving the application of ADR, the Facilitator shall forward a copy of the application to the respective Deputy Commissioner of Taxes and also call for his opinion on the grounds of the application If the Deputy Commissioner of Taxes fails to give his opinion regarding fulfillment of the conditions within fifteen days from receiving the copy mentioned in the clauses, the Facilitator may deem that the conditions thereto have been fulfilled Decision of the ADR Where an agreement is reached, either wholly or in part, between the assessee and the Commissioner's Representative, the Facilitator shall record, in writing, the details of the agreement in the manner as may be prescribed The agreement shall be signed by the assessee and the Commissioner's Representative and the facilitator, AUDIT TAX ml CONSULTINGAlternative dispute resolution WwW, - new provision. eee Mahmud & Co. Where no agreement, whether wholly or in part, is reached or the dispute resolution is ended in disagreement between the applicant assessee and the concerned Commissioner's Representative for noncooperation of either of the parties, the Facilitator shall communicate it, in writing recording reasons thereof, within fifteen days from the date of disagreement, to the applicant and the Board, the concerned court, Tribunal, appellate authority and income tax authority, as the case may be, about such unsuccessful dispute resolution. Where the agreement is reached, recorded and signed accordingly containing time and mode of payment of payable dues or refund, as the case may be, the Facilitator shall communicate the same to the assessee and the concerned Deputy Commissioner of Taxes for compliance with the agreement as per provisions of this Ordinance. No agreement shall be deemed have been reached if the Facilitator fails to make an agreement within one month from the end of the month in which the application is filed. Where there is a successful agreement, the Facilitator shall communicate the copy of the agreement to all the parties mentioned in sub-section (6) within fifteen days from the date on which the Facilitator and the parties have signed the agreement. AUDIT TAX ml CONSULTING sAlternative dispute resolution WwW, - new provision.. eee Mahmud & Co. Effect of agreement Where an agreement is reached, it shall be binding on both the parties and it cannot be challenged in any authority, Tribunal or court either by the assessee or any other income tax authority. Every agreement, concluded under section 1520 shall be conclusive as to the matters stated therein and no matter covered by such agreement shall, save as otherwise provided in this Ordinance, be reopened in any proceeding under this Ordinance. Limitation for appeal where agreement is not concluded. Where an agreement is not reached under this Chapter, wholly or in part, the assessee may prefer an appeal- (a) to the Appellate Joint Commissioner of Taxes or Appellate Additional Commissioner of Taxes or Commissioner of Taxes (Appeals), as the case may be, where the dispute arises out of an order of a Deputy Commissioner of Taxe (b) to the Taxes Appellate Tribunal where the dispute arises out of an order of the Appellate Joint Commissioner of Taxes or Appellate Additional Commissioner of Taxes or Commissioner of Taxes (Appeals), as the case may be; and (c) to the respective appellate authority or court from where the assessee-applicant has got permission to apply for ADR. AUDIT TAX ml CONSULTING sAlternative dispute resolution WwW, Snehasish * - new provision.. Mahmud & Co. In computing the period of limitations for filing appeal, the time elapsed between the filing of the application and the decision or order of the ADR shall be excluded Post verification of the agreement The Board may monitor the progress of disposal of the application for ADR in the manner as may be prescribed and ensure necessary support and coordination services. Copies of all agreement or matter of disagreement shall be sent by the Facilitator to the respective Commissioner and Board for verification and ascertainment of whether the agreement is legally and factually correct After receiving the copy of agreement or matter of disagreement, if it appears to the Board that the alleged agreement is obtained by fraud, misrepresentation or concealment of fact causing loss of revenue, then such agreement shall be treated as void and the matter shall be communicated to the concerned authorities, Tribunal or court for taking necessary action Bar on suit or prosecution No civil or criminal action shall lie against any person involved in the ADR process before any court, tribunal or authority for any action taken or agreement reached in good faith. AUDIT TAX ml CONSULTING sList of countries Bangladesh Wy, has signed DTA Snehasish Mahmud & Co. There are agreements on avoidance of double taxation between Bangladesh and 29 countries which are: 1. United Kingdom of Great Britain and Northern Ireland 2. Singapore 3. Sweden 4. Republic of Korea 5. Canada 6. Pakistan 7, Romania 8. Sri Lanka 9. France 10. Malaysia 11. Japan 12. India 13. Germany 14. The Netherlands 15. Italy 16. Denmark 17. China AUDIT W TAX CONSULTINGList of countries Bangladesh has signed DTA 18, Belgium 19, Thailand 20. Poland 21. Philippines 22. Vietnam 23. Turkey 24. Norway 25, USA 26. Indonesia 27. Switzerland 28, Oman (air traffic only) 29, Mauritius 30, UAE 31. Myanmar 32. Saudi Arabia 33. Bahrain 34, Kuwait 35. Nepal AUDIT W TAX Ml CONSULTING ws, Snehasish Mahmud & Co.Major provisions of the DTA between Wy, Bangladesh and Singapore Snehasish * Mahmud & Co. esources\Tax\DTA\singaporebangladeshdta.pdf AUDIT W TAX Ml CONSULTINGMajor provisions of the DTA between Wy, Bangladesh and Singapore Snehasish * Mahmud & Co. Article 4 : Fiscal Domicile Article 5 : Permanent Establishment Article 7 : Business Profit Article 8 : Air Transport Article 9 : Shipping Article 11 : Dividend Article 12 : Interest Article 13: Royalties Article 14 : Capital gains Article 15 : Personal Services AUDIT W TAX Ml CONSULTINGws, Snehasish Mahmud & Co. Past questions Question no 3 (C) of Nov- Dec 2019 Question no 3 of May-June 2018 Question no 3 of May-June 2017 Question no 1 (b) of May June 2016 Question no 1 (b) of Nov-Dec 2015 Question no 2 (a) of May-June 2015 AUDIT W TAX Ml CONSULTINGws, Snehasish Mahmud & Co. No part of this presentation may be reproduced, stored in a retrieval system or transmitted in any form by any means- electronic, mechanical, photocopying, recording or otherwise- without prior permission from the presenter. This presentation is intended to provide information, but is nota substitute of legal or accounting advice. AUDIT W TAX Ml CONSULTINGws, Snehasish Mahmud & Co. Contact Snehasish Barua, FCA Partner Snehasish Mahmud & Co Chartered Accountants +8801819319319 snehasish@smac-bd.com AUDIT W TAX Ml CONSULTING