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22nd-Nov-2020

People of Bangladesh are losers for their weakness

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TAX Justice Network (TJN), a London based anti-graft body said Bangladesh loses around $703.40 million which is around Tk 6,000 crore in taxes a year. This is quite a big amount of money that a least developed country like Bangladesh is annually losing.  It includes $674.24 million by corporate tax abuse while off-shore tax evasion is responsible for the remaining $29.15 million. Wealthy business houses and individuals are regularly making under declaration of their business profits and assets to make lesser tax payments.   
We would say poor oversight and flexible regulation are mainly facilitating the tax dodging by businesses and individuals. It is sad that a section of our tax officials work for dishonest people to show ways how to secure their unreported income left hidden to deprive the state from its due. Moreover, we have a system which allows whitening the black money which makes the illegal practice legal. Big people are exploiting the situation amassing illegal wealth inside and outside the country. Multinationals are dodging the biggest amount in this respect.  
Globally the world is losing over $427 billion in annual tax dodging taking advantage of legal flaws in tax laws and such other loopholes. The report has said bigger part of the tax dodging occurs through shifting profits into off-shore tax heavens showing lesser annual profits in countries where they do business and consequently pay less tax to the government. Many also regularly hide their assets undeclared in off-shore pockets which remain beyond the reach of law. The panama papers made scandalous disclosures which also included individuals and business from Bangladesh.  
The TJN is a global alliance for tax justice and it said, Bangladesh's most vulnerable trading channel was inward foreign direct investment. The United States, the United Kingdom and Singapore are the most responsible for such vulnerability. The TJN has urged global action over shadowy tax havens that have diverted billions of dollars from nations now fighting the Covid-19 pandemic.
Alone multinational corporations are shifting about $1.38 trillion of profits via tax havens, while private individuals are investing more than $10 trillion in assets. We would say this is mainly a global money laundering problem but since powerful people are behind it, it is difficult to stop but we must do more to stop it.