An investigation by the Central Intelligence Cell (CIC) in the revenue sector has uncovered that Summit Group has evaded payment of Tk 11.12 billion in taxes in the single-largest case of tax-dodging in Bangladesh, officials say.<\/p>\n
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The tax avoidance has occurred by way of not deducting withholding tax on dividend payments from two of its outfits, one opened in the trade entrepot of Singapore.<\/p>\n
It is the largest private -sector participant in the power sector during the previous government’s tenure, when quick-rental power deals offered a sort of indemnity to certain private power producers.<\/p>\n
A CIC official described it as “the country’s largest TDS (Tax Deducted at Source) scandal” discovered so far.<\/p>\n
The tax demand has been unearthed by the CIC following cancellation of discriminatory tax privileges for the company not available for similar type of other power companies, officials said.<\/p>\n
As per the CIC findings, Summit Corporation Limited failed to deduct 20-percent withholding tax while paying dividends to its shareholder Summit Power Limited.<\/p>\n