NBR's field office resolved a Tk 721 crore remittance case with a tax settlement of only Tk 15,543

A businessman and Awami League leader allegedly brought Tk 721 crore into Bangladesh under the guise of remittances and claimed a tax exemption. SM Faruqi Hasan, founding president of the Awami League's Ontario unit, stated that the funds came from Chinese companies, including Norinco International Corporation and China Shipbuilding and Offshore International, in phases since the 2012-13 fiscal year. Of this amount, Tk 500 crore was reportedly brought in during the 2020-21 and 2021-22 fiscal years.  

Hasan sought a tax exemption but failed to provide valid proof to support his claim, according to tax officials. The Tax Zone 5 field office reopened the case for audit in 2021, citing that Hasan was residing in Bangladesh when he received the funds. However, without any explanation for the reopening, tax officials settled the case by accepting only Tk 15,543 as tax, as per findings from the Income Tax Intelligence Unit of the National Board of Revenue (NBR).  

A tax official, speaking anonymously, confirmed that the matter is under review. On Monday, NBR Chairman Md Abdur Rahman Khan mentioned in an event that Tk 730 crore had been funneled as remittances and is currently under investigation.  

Tax officials suspect that the money was laundered abroad and later repatriated as remittances to benefit from the NBR’s tax incentives, which include a 2.5 percent government incentive for remittances sent through formal channels.  

The 67-year-old SM Faruqi Hasan is a director in multiple businesses, including Hotel Lake Castle, Protik Developers, Protik Ceramics Ltd., and Protik Food & Allied Ltd. Officials claim that Hasan leveraged his close connections with high-ranking officials of the previous Awami League government to obtain illegal tax benefits with the help of some tax officials.  

Hasan could not be reached for comment.