NBR proceeding with appointment of TRP to find new taxpayers

Staff Correspondent: National Board of Revenue (NBR) wants to find taxpayers who have taxable income and Tax Identification Number (TIN) across the country. For this the organization will appoint Income Tax Return Preparer (TRP). Meanwhile, TRP rules have also been issued. And income tax lawyers have been agitating to abolish the TRP rules by calling them ‘black laws’.
Ignoring everything, NBR recently published TRP guide. Those concerned say that irregularities will increase through TRP. But NBR can collect taxes from remote areas with its own manpower.
Officials concerned with NBR say that fear is working on TRP as it is a new concept. However, TRPs will play an important role in increasing the revenue of the country. The number of TIN holders in the country is 9.3 lakh but only 2.5 lakh people file returns.
Despite the increase in the income and wealth of the people of the country, most of the people are not covered by the income tax due to ignorance. The country’s gross domestic product (GDP) tax ratio is 9.5 percent, the lowest in South Asia.
When asked, an official of the Income Tax Department, who did not want to be named, told Jago News that there are private income tax collection agencies in developed countries. Our return preparers here will actually assist the Income Tax payer. Their responsibilities and duties are mentioned in the rules. There is no scope for irregularities here. As a result, it will be easier to collect income tax even from remote areas.
He said, the subject is new, naturally people may have misconceptions. However, this strategy has been taken to increase tax collection. Those who oppose it, they do not understand. They will get a clear idea if they see the assistant.
The former chairman of NBR Mohammad Abdul Majeed said, why the tax GDP ratio is decreasing, where is the leakage – it needs to be studied. It needs to be discussed by the National Parliament. Our GDP is growing, but not realized. Tax agents should be appointed on a trial basis. This initiative will make taxpayers aware.
Tax lawyers say such initiatives have been taken before. Income tax was collected from the students, but was not successful. RTPO will not be implemented. After 1 to 2 years its existence will not be detected. Because it has no institutional basis.
If asked to know, Dhaka Taxes Bar Association General Secretary Advocate Md. TouhidUzzaman Khan told that there will be irregularities here. NBR will hire Third Party (TRP). A third-party people will intimidate taxpayers by claiming to be members of NBR. Taxpayers will identify themselves as income tax lawyers while collecting information and submitting it to NBR. Through this, a brokerage system will be introduced.
He said, there are many officers of NBR or government officials who are not members of the bar but do return submission work. They also work as brokers. It is against the law. We have objection to this. They introduce income tax lawyers, chambers at home or at different places. TRP takes the issue as follows – the police is given the power to catch criminals, the power to investigate, and the police is given the judicial power. Then you don’t need a lawyer, you don’t even need a court. NBR is now looking to do just that. The manpower of NBR is less, I accept that. To increase the revenue, the organization should increase the manpower, increase the zone. NBR should be enlarged.
Income tax lawyer Ahmad Rajeev told that these TRPs will now be appointed as third parties. They will later agitate for the job permanence. Then NBR will be in big danger.
Policy Research Institute (PRI) Executive Director Economist Dr. Ahsan H Mansoor said, there is no need to appoint a separate agent to increase the deposit of returns. NBR can do this with its existing manpower. TIN contains address, name and phone number. Based on that information, NBR can send a letter to the TIN holder. Then action can be taken as per income tax law.
Who is TRP?
A TRP is a person listed as a preparer of income tax returns under Rule 5 of the Return Preparers Rules, 2023 as per the proposed guidelines. TRPs who have passed the Tax Aptitude Test (TAAT) and are certified under these rules can prepare and file income tax returns of persons liable to file returns.
How to become a TRP tax lawyer
According to Section 327 of TRP Act, persons recognized as tax advocates apply to NBR and the board will grant them TRP certificate without any examination after verifying the qualification certificate and other applicable documents.
TRPs are not tax lawyers
Only TRPs who have passed the TAAT exam and are certified can prepare and file income tax returns. However, they shall in no way be treated as tax advocates under Section 327 of the Act.
What are the responsibilities of TRP, how to get TRP certificate
Prepare the return of the person liable to file the return, obtain consent before preparing and filing the return, hand over a copy of the return to the person concerned and preserve and hand over the proof of submission of return to him.
Bangladeshi nationals who are not working in government service will be eligible for TRP. Besides, he should have passed minimum graduation or equivalent examination. Must have knowledge of return preparation and filing. Must have working knowledge of computer and ICT. Must pass the Board’s Tax Experience Test and have proof of TIN holder and income tax return filing.
How to enroll TRP in NBR
NBR will give TRP certificate to the candidates who pass the tax experience test. A certified TRP can apply directly to the Board for enrollment and mention the name of the sponsoring organization with which he/she is interested in enrolling in the application. On verification of the application, the Board will register the applicant as a TRP and issue an Identification Number or Unique Identification Number.
How to prepare return TRP
Any resident eligible person can prepare and file his first and subsequent income tax returns through TRP. Provided that the return shall be filed under section 166 of the Act. The return should be filed using the website at www.etaxnbr.gov.bd.
Incentive rate of TRPs
NBR will give money to the return preparer as an incentive for such activities. The return preparer will get a portion of the tax paid by the taxpayer. According to NBR’s draft policy, 10 percent on minimum tax for the first three years, 2 percent on tax up to Tk 15,000, 1 percent on next Tk 50,000 and 5.5 percent on remaining tax.
In addition, for the fourth and fifth years, 5 percent on the minimum tax, 1 percent on the next tax up to Tk 15 thousand, 5.5 percent on the next 50 thousand taka and 1.25 percent on the remaining tax will be given.
After five years of assisting a taxpayer in filing returns in this manner, such person or agent shall not be entitled to incentives from the sixth year onwards. On the other hand, the assisting institution can charge 10 percent of the incentive due to the return preparer as service charge.
Besides, if the TRP is changed after filing the income tax return of the first year and the return of the subsequent tax year (second, third, fourth or fifth) is filed through the new TRP, the amended income tax return preparer will be entitled to the incentive at the prescribed rate for the second, third, fourth or fifth tax year, as the case may be. The TRP shall apply to the Board of Revenue through the assisting institution for receiving the incentive amount due in view of filing the return. If the supporting organization submits a bill to the Board showing the TRP due incentives and prescribed service charges, the Board will scrutinize and approve the bill and separately pay the TRP due incentives and service charges of the assisting organizations.
How TRP certificate can be cancelled
The Board can warn the TRP for deficiency in work and misconduct. The board can take steps to cancel the certificate for eight reasons of deficiency or misconduct.

1. If the TRP taxpayer is unable to provide a system generated copy of the return filed and proof of return filing.
2. Failed to correctly enter the information supplied by the taxpayer in the return prepared by him.
3. Fraudulently claimed incentive under sub-rule (1) of rule 12.
4. Involved in any financial irregularities or fraud.
5. Deliberately attempts to understate the income or tax liability computed on the income in the return.
6. If any serious irregularity is involved and evidence is presented to the Board in favor of the same.
7. Failure to comply with the instructions issued by the Board.
8. If income received from government job after getting TRP certificate.
   Besides, if the TRP or supporting organization violates the privacy of any taxpayer’s information, NBR can take other legal action against them including filing a criminal case under the Income Tax Act.
   Besides, TRP will not be able to prepare and submit income tax return if the income tax return preparation certificate issued by the board is suspended or revoked or the rules are revoked.