High Court issues ‘stand over’ until May 27 on GBX Logistics tax-dodge petition

The High Court has issued a ‘stand over’ on a writ petition accusing GBX Logistics, the local agent of international container shippers Hapag-Lloyd, of dodging millions in taxes and money laundering until May 27.

The court has also ordered the State to report what steps the National Board of Revenue or NBR, Anti-Corruption Commission or ACC and the Bangladesh Bank to check in light of a previous verdict whether the shipping firms or their local agents were dodging taxes or laundering money.

The bench of Justice Md Moinul Islam Chowdhury and Justice Md Ashraful Kamal issued the orders on Sunday. The ‘stand over’ means the petition has been postponed to be dealt with at a later date.

Lawyers involved in the case said the court issued the orders when a lawyer asked whether the writ petition was maintainable when the court had already given its verdict on a similar case.

A lawyer, Motiur Rahman, filed the petition against GBX Logistics on Feb 11. He had previously filed a similar petition that had been dismissed by the court.

Ajmalul Hossain QC and Fida M Kamal, accompanied by Shaheen Khan, represented the petitioner in the initial hearing. Deputy Attorney General Motaher Hossain Saju stood for the State. 

Rokanuddin Ahmed and Asaduzzaman represented GBX Logistics and Tanjib-ul Alam argued for Hapag-Lloyd in the court.

Shaheen told bdnews24.com the writ petition was put up for hearing on Mar 7.

But before hearing the petition, the court asked the petitioner to write to the Bangladesh Bank, ACC, and NBR to know their comments or what steps they had taken.

The court then deferred the start of the hearing until Sunday. 

As the three agencies did not respond, the court has now issued a stand over on the writ petition until May 27 and asked the State to know and report their statements, Shaheen said.

Deputy Attorney General Saju said the court ordered him to report within May 27 whether the central bank, ACC, and NBR took any step to check following the previous verdict if the shipping companies or their local agents were dodging taxes or laundering money, and if they were doing so, what steps against them have been taken.

ACC lawyer Khurshid Alam Khan told bdnews24.com: “The court made some serious observations on the same issue. So today we said this writ petition is not maintainable.”

He said the petitioner sought directions on whether the shipping firms or their local agents were dodging tax or laundering money.

“We’ve told the court that it delivered a similar judgment some days ago. The judgment said the ACC can investigate if something is found. If the ACC does not take cognisance of such complaints, there are scopes of starting cases with police or special judge’s court. There are scopes of alternative remedies. So this writ petition is not maintainable,” he said.

Earlier, GBX Logistics Managing Director Ahmed Yusuf Walid said she suspected their business rivals were behind the writ petition.

According to the petition, GBX Logistics earned a “substantial amount of revenue” in commissions in 2014, in line with the Bangladesh Bank directives, after handling Hapag-Lloyd’s businesses.

“But instead of the 37.5 percent corporate tax, the company paid 5 percent tax at source on the revenue. They have also siphoned off the undisclosed income out of the country,” lawyer for the petitioner Shaheen had said.

He had said in 2012, the then Hapag-Lloyd’s local agent, SW Shipping, earned Tk 78.1 million in commission.

“But GBX Logistics, which handled twice the business in 2014, claimed in its financial statements that it only earned Tk 50 million.”

Citing the company’s financial reports, the petition says, GBX also stated an income of Tk 81.24 million the same year from handling local businesses of Singapore-based OL and BLPL, taking its total earnings to Tk 121.24 million.

The petition claims GBX paid Tk 8.63 million in tax at source instead of Tk 45.45 million in corporate taxes.

The petitioner served legal notices twice on the NBR, Bangladesh Bank and the ACC urging actions.

The High Court was moved as they had not responded to those, according to the plea.