Published : 22 Dec 2024, 05:23 AM
Updated : 21 Aug 2026, 12:24 PM
An investigation by the Central Intelligence Cell, or CIC, of the National Board of Revenue has found that two subsidiaries of the Summit Group, the much-discussed top stakeholder in the power sector during the tenure of the Awami League regime, have evaded Tk 11.12 billion from the government by not deducting source tax in the payment of dividends.
The evasion was done by not deducting 20 percent and 15 percent source taxes on dividend payments to Summit Corporation Limited, the company with shares in Summit Power Limited, and to Summit Power International, a Singapore-based firm having shares in Summit Corporation Limited, respectively.
Asked how the tax would be collected or what the NBR would do now, Dhaka Taxes Zone 2 Commissioner Mutasim Billah Faruqui said: “We will go to the collection now per the NBR chairman’s instructions. The methods used for the collection will be applied."
Noting that “Summit has never evaded any tax”, a statement issued by Summit Power International's media wing said: “We are yet to receive any information from NBR or any tax authorities. Summit has never evaded any tax.”
“Upon receipt of any letter from NBR or tax authorities, we will do whatever is required to be done as per the laws of Bangladesh. We always did and shall always abide by the laws.”
The CIC discovered the information while probing only one section of a single group during its investigation against a group of prominent business conglomerates after the interim government took charge.
An official associated with the NBR's intelligence cell described the incident as "the country's biggest TDS – source tax – deduction 'scam' so far."
The agency came up with the decision after analysing the data of all kinds of shareholding, declaration and payment of dividends by Summit Power for more than one and a half months.
The CIC initiated an investigation against the owners of the prominent business conglomerates Beximco, Bashundhara, Summit, Orion, and Nassa groups on Aug 20.
Letters have been sent to banks and financial institutions requesting transaction details of 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 intelligence agency later launched investigations against these companies as well on the suspicion that there was less amount of tax evasion in the name of individuals.
The number of intelligence personnel was increased then, with the appointment of an investigating officer for each company. This is the biggest finding so far in the investigation.
However, several intelligence officials said they are concerned about finding more information about corruption against each company and its owners as the probe is still persistent.
