An investigation by the Central Intelligence Cell (CIC) of the National Board of Revenue (NBR) has revealed that two subsidiaries of the Summit Group, a leading stakeholder in Bangladesh's power sector during the Awami League’s tenure, evaded Tk 1,112 crore by failing to deduct source tax on dividend payments.
The tax evasion occurred through the omission of 20% and 15% source tax deductions on dividend payments to Summit Corporation Limited, a shareholder in Summit Power Limited, and Summit Power International, a Singapore-based firm holding shares in Summit Corporation Limited, respectively.
Speaking about the issue, Dhaka Taxes Zone 2 Commissioner Mutasim Billah Faruqui stated: “We will proceed with the collection as per the NBR chairman’s instructions. The methods required for collection will be applied.”
In response to the findings, Summit Power International issued a statement asserting: “Summit has never evaded any tax. We are yet to receive any information from NBR or any tax authorities. Upon receipt of any letter from the NBR or tax authorities, we will act in accordance with the laws of Bangladesh. We have always complied with and will continue to comply with the law.”
NBR discovered the irregularities during its investigation into a single segment of Summit Group.
The inquiry forms part of a broader probe into prominent business conglomerates launched after the interim government assumed office.
An official from the NBR's intelligence cell described the incident as “the largest source tax deduction scam in the country’s history.”
The findings were based on an analysis of Summit Power’s shareholding, dividend declarations, and payment data over a period exceeding one and a half months.
The investigation, initiated on 20 August, targeted the prominent business groups Beximco, Bashundhara, Summit, Orion, and Nassa.
Letters have been sent to financial institutions seeking transaction details for Salman F Rahman, vice-chairman of Beximco Group; Nazrul Islam Mazumdar, chairman of Nassa Group; Muhammad Aziz Khan, chairman of Summit Group; Ahmed Akbar Sobhan, chairman of Bashundhara Group; Obaidul Karim, chairman of Orion Group; and their family members.
The probe expanded to include the corporate entities under suspicion that tax evasion might have been masked as personal transactions.
Additional intelligence officers were appointed to investigate each company, marking the most significant discovery in the ongoing inquiry.
However, several intelligence officials have voiced concerns about uncovering further evidence of corruption against these companies and their owners as the investigation progresses.
