VAT, Tax and Customs Dispute Resolution
Rahman’s Chambers has a long-standing practice in assisting clients in taxation matters. Besides, advising clients on transactions we assist them in court sand tribunals. We have handled several cases involving corporate taxation, VAT and customs in different forums with excellent success record. We have a team of lawyer and consultants with specialized knowledge and huge experience on taxation matters.
– Chambers & Partners, 2022, 2021, 2020
“Offers further capabilities in international trade, commercial litigation and project finance”
– Chambers & Partners, 2019
“Their response times are excellent and they make you feel generally very well informed…”
– Chambers & Partners, 2018
Rahman’s Chambers whom we have contacted in 2007 seeking assistance for disputes arising with the National Board of Revenue (NBR) Income Tax office, involving rejection of trading account and imposition of estimated profit based on assumption… successfully handled the income tax reference case pending in the High Court and also successfully argued before the Court the legality of such assumptions and rejection of the trading account and its expenditures upon remand. Finally the tribunal, once recommended from the High Court upon perusal of relevant receipts, vouchers, verifiable transactions, passed favorable judgment in our favor…
For full recommendation click here.
Our Completed works are:
- We have handled several HS codes related disputes for a mutational filament bulb company in different forum i.e. customs appeal, appellate tribunals, and High court.
- We have handled HS codes related disputes involving textiles machinery for a mutational company.
- We have handled several valuation-related disputes for a mutational filament bulb company in different forums i.e. customs appeal, appellate tribunals, and High court.
- We have handled disputes involving price declaration impacting the valuation of a major multinational mobile phone company.
- We have handled a writ involving non-compliance of bonded warehouse conditions and removal of raw materials from one bond house to another without permission and associated duties, penalty, and baseless assumptions of customs authority for the sale of bonded items for the major garments industry.
- We have handled disputes in the RMG sector involving the violation of customs bond-related penalty and claims involving shortage/sale of raw material, removal of raw material and transfer of raw material, etc.
IMPOSITION OF PENALTY
- We are assisting our client, Larsen & Toubro (L&T), in resolving disputes involving the imposition of a penalty of nearly USD $ 10,00,000 for the delay in filing tax returns involving its several project operations, relating to power plants, metro rail, etc., before taxation tribunals.
- We have handled disputes involving rejection of trading account transactions and imposition of fictitious profit.
- We have handled disputes involving the disallowance of expenses of different nature and showing them as income.
- We have handled disputes involving the calculation of estimated profit based on another comparable industry.
TRADE VAT/INPUT VAT
- We have handled disputes involving input VAT and mismatching with an inventory list and related non-declaration, imposition of penalty, etc.
- We have successfully challenged and resolved VAT claims through ADR at the Appellate tribunal stage involving the destruction of raw materials for Grameen Danone Foods Ltd.
Practice Guide – Taxes & Finance
VAT, Tax and Customs related legal support is high in demand in Bangladesh. Particularly for companies, new investors & entrepreneurs knowing the different formalities involving taxation is a big challenge because of its complexity. In particular with income tax, different statutory requirements for e.g. advance tax on income, deduction of tax at source, tax exemptions, tax rebate, procedures for filing annual tax returns along with its assessments, etc and their correlation which may be found difficult without proper knowledge. On the other hand, entirely new regulations are applicable to VAT. Understanding ATV (advance trade VAT), VAT rebate/input at different stages of trade, obligations of consumers, supplier, service provider and different MUSAK filing along with the filing of monthly returns is equally complex. Finally, rules and regulations applicable for various Custom duties, supplementary duties, regulatory duties and its relations with HS code and product valuation is a complex area of law that requires sound knowledge to deal with the issue efficiently. In case of any disputes, legal support is often required for challenging any claim, issues, Order before the Higher Authority or Tribunal which may even go up to the High Court & Appellate Division.
Application required to be filed before Commissioner against demand and assessment Based on the VAT Act related Divisions of High court and Appellate Division. Raising all issues before Commissioner is important for placing a successful argument in later forums.
If the Commissioner refuses to accept our legal and factual position, we prefer appeal to the Commission Appeal. Unless their is any jurisdictional issue involved and/or the law itself is challenged, exhausting forum as per requirement of law is important.
Appellate Tribunals comprises with Chairman and members who are ranked equivalent to High Court Division. An appeal can be filed from the decision of the Commissioner Appeal to Tribunal. We assist our client for the entire process.
The High court writ jurisdiction can be entertained against the decision of Appellate Tribunal as a last resort on procedural grounds. our success rate before High court on VAT matters is very high. Generally interference by High court is found fruitful as Hon’ble High Court is prepared to go into details and takes lengthy submissions from both parties.
On the otherhand, the High court Tax Reference jurisdiction is unlike VAT and Customs is a permanent jurisdiction whereas per Tax Ordinance reference case can be filed. High Court can be entertain if a legal issue is involved against the decision of Appellate Tribunals. Our success rate before High court on Income tax matters is very high.
Similarly over customs issues High court by way of writ exercises it’s power where tribunals acted beyond its limit and where statute have not provided any remedy.
The recent amendment in VAT, Tax and Customs Act allowed the parties to take the matter before Facilitators. The facilitators are generally professional retired Govt. Officials, lawyers, chartered Accountants who are expert in the respective matters. Who plays the role akin to mediators analyzing factual and legal position of parties and help the parties to resolve the dispute amicably. The Chamber has very high rate of success before ADRs.
Our Related Clients
- OOCL Bangladesh
- G.A.B Limited
- Grameen Danone Foods Ltd
- VVD, India
- Rehmania International Pvt. Ltd
- Gaps Bangla Ltd.
- Bangladesh Equipment and Mineral Company Ltd
- NEPC 1 & 3, China
- Sojitz Machineries Corporation, Japan
- Philips Lighting Bangladesh Limited
- Several investors and individuals clients
Related Resources - Library
The value of law reports in the legal profession cannot be overemphasized. They can be regarded as the life-wire of the legal profession. We have a rich library with a mixture of printed and online legal databases. We have printed version of All England Commercial Cases, Indian Digest of Supreme Court cases, Yearbook Commercial Arbitration of Wolter Kluwer and most law reports of Bangladesh. We subscribe to the online legal database Manuputra providing access to most reputed law reports. Read more
Our Reported Cases
- Grameen Danone Foods Ltd Vs. Commissioner of Taxes 6 CLR (HCD) (2018) 25.