BartaBangla Desk :: The Cabinet on Monday asked the National Board of Revenue (NBR) to take action against Professor Muhammad Yunus as per its report for his alleged tax dodging on his foreign income.
The decision was taken at the Cabinet’s weekly meeting held with Prime Minister Sheikh Hasina in the chair.
The NBR placed its report before the Cabinet on Prof Yunus’ income from foreign sources today.
The Cabinet on August 2, 2012 asked the NBR to submit a report on Prof Yunus regarding his income as wage earners, whether he is allowed to bring the money and how much money he was exempted from the NBR.
Cabinet Secretary Musharraf Hossain Bhuiyan briefed reporters after the meeting.
He said that the NBR in a recent report showed that Prof Yunus earned Tk 50,61,85,588 in between July 2004 and June 2011 in honorarium from 133 foreign organisations, awards from 10 organisations and royalty from 13 organisations.
“And he got income tax exemption worth Tk 12,65,46,397, but as the government servant he is not entitled to take so,” Musharraf Hossain said.
He said the Nobel Laureate did not take permission from the government before receiving the money as a ‘public servant’ in honorariums, awards and royalties from foreign sources between 2005 and 2011.
The report said Prof Yunus did not have the government’s consent for accepting those awards and money as well as did not take permission from the government before going abroad.
The Cabinet secretary said in the report it was stated that while Dr Yunus was the Managing Director of Grameen Bank he misused his power and gave loan to his family organisation at lower interest rate.
The report mentioned that the former MD of Grameen bank transferred money to Grameen kalyan Fund from Grameen Bank violating the rules and regulation.
“The cabinet asked the ministries concerned to take action as per the existing laws of the country,” Musharraf Hossain said.
He said tax-related actions will be taken by the NBR while Banking Division of the Finance Ministry will look after the banking sector irregularities. “If necessary, the Law Ministry will help them,” he said.
The NBR report suggested that the Finance Ministry to take steps to recover the money that had been spent on purposes other than his salary and allowances during the period.
Since the Grameen Bank MD was a ‘public servant’, he needed to take approval of the government before receiving honorariums, awards and royalties from any domestic and foreign organisations, or making any foreign visits, said the report.
The NBR also raised the issue of Prof Yunus’ holding the position of MD for 10 years after he crossed the retirement age.
It said the Grameen Bank Ordinance was breached by transfer of funds from Grameen Bank to Grameen Kalyan, one of its associated organisations, since the microcredit bank can only lend money to landless people. The NBR claimed that the fund transfer was illegal.
The NBR also checked income tax documents of the bank’s 13 associate organisations, and said eight of them had enjoyed various income tax facilities illegally.