Holding tax fraud: Tk 16.8 crore revenue lost behind white fluid, ACC sues seven

The Anti-Corruption Commission (ACC) has filed two separate cases alleging that white fluid was used and figures were tampered with in the internal documents and annual assessment of the revenue circle of Chattogram City Corporation (CCC), reducing an assessment of about Tk 20 crore and causing the corporation a revenue loss of Tk 16.8 crore.

The two cases were filed on Monday (November 9) at the ACC district office, Chattogram-1. Assistant Director Sayed Alam of the office filed the cases as complainant.

Seven people in total have been made accused, including CCC officials and employees and the owners of the two large commercial establishments that benefited from the fraud.

Md Al Amin, deputy director of the ACC's Chattogram district office-1, confirmed the filing of the cases, saying the two cases were lodged after prima facie evidence was found of embezzlement of government revenue through fraud in the holding tax assessment process, and after specific approval was received from the commission.

Among the seven accused are CCC officials and employees and the owners of the beneficiary establishments. They are Mohammad Nurul Alam, tax officer of CCC revenue circle-08; Md Abdul Kader, former deputy tax officer (retired); Joy Prakash Sen, deputy tax officer of revenue circle-07; Md Manjur Morshed, assistant (tax collector) of circle-08; Ruposhi Rani Deb, accounts assistant of circle-07; and Mohammad Ahsaan Ullah, accounts assistant of circle-08.

The owners of the two beneficiary establishments — Yusuf Abdullah Harun, owner of Incon Trade Limited of Banani, and Haji Md Abul Kashem, owner of Messrs Esak Brothers Limited of Halishahar — have also been named as accused in the first information reports.

The annual assessment of the holding of 'Incon Trade Limited' in the South Patenga area, under revenue circle-08, was reduced from Tk 25,67,04,750 to Tk 5,67,04,750. After the original assessment report prepared by assessor Samir Dutta reached the head office and the circle office, white fluid was used and figures were tampered with in the field book and the appeal form.

As a result, at a rate of 14 percent effective from the first quarter of the 2022-23 fiscal year, the loss amounted to Tk 2.8 crore a year, or Tk 8.4 crore in total over three years.

In this case, tax officer Mohammad Nurul Alam, retired deputy tax officer Md Abdul Kader, assistant tax collector Md Manjur Morshed, accounts assistant Ruposhi Rani Deb and Incon Trade Limited owner Yusuf Abdullah Harun have been made accused.

On the other hand, the annual assessment of the holding of 'Messrs Esak Brothers Limited' in the South Middle Halishahar area, also under revenue circle-08, was reduced from Tk 26,38,19,250 to Tk 6,38,19,250. The assessment determined by assessor Dabir Alam Chowdhury was altered on page 10 of the field book using white fluid and tampering.

Here too, the loss to CCC amounted to Tk 2.8 crore a year, or Tk 8.4 crore in total over three years. In this case, tax officer Mohammad Nurul Alam, deputy tax officer Joy Prakash Sen, accounts assistant Mohammad Ahsaan Ullah and Messrs Esak Brothers Limited owner Haji Md Abul Kashem have been made accused.

Together, the two cases allege a total revenue loss of Tk 16.8 crore to CCC. With the cases filed after the commission's approval, the investigation now rests with the ACC.