Grameenphone responds to reports on alleged evasion of Tk 20 billion in taxes

Grameenphone CEO Michael Foley has responded to the recent reports on alleged evasion of Tk 20 billion in taxes by his firm.

The reports have cited a letter from the Large Taxpayers’ Unit or LTU-VAT of the National Board of Revenue or NBR to the Securities and Exchange Commission or SEC.

In the letter, the LTU-VAT has raised a claim of unpaid VAT and irregular tax exemptions by the largest telecom operator of Bangladesh.

“Grameenphone is the largest taxpayer in Bangladesh,” Foley said in the statement on Thursday, adding that the company paid out over Tk 300 billion in taxes and fees to the exchequer over past five years

“I have noted from the media that the LTU-VAT has referred certain cases to the BSEC, and wish to reiterate that while the cases are pending before the different judicial forums, we continue to work with NBR, LTU-VAT and the other relevant authorities to resolve these issues,” he said.

He said Grameenphone “continually assesses every case individually” and takes relevant provisions in its books in “full compliance with all international and local accounting standards”

“Like any other corporate entity, at times we have differences of opinion with the tax authorities,” Foley said.

“In such cases, the court of law is the proper forum to resolve these differences and we commit to comply with the final resolution,” the Grameenphone CEO said.

According to the statement, “The cases highlighted by the LTU-VAT represent in aggregate 6.7% of our total contribution to the Government of Bangladesh over the last five years. 

“Nevertheless these amounts are material and we require lawful resolution on the validity of the claims under dispute as we have a deep responsibility to safeguard the interest of our shareholders,” it said.

Foley also said, “I deeply respect and appreciate the hard work done by the NBR and the LTU-VAT; indeed they have an incredibly difficult task.  Grameenphone is strongly committed to Bangladesh and we strive to resolve these issues fairly and transparently.”