BNR verifies the authenticity of audited financial reports of companies
The value-added tax (VAT) field office and the tax administrator’s audit team will review the authenticity of audited financial statements submitted by companies with their returns.
The National Board of Revenue (NBR) has taken the initiative to limit the possibilities of evasion of indirect taxes paid by consumers.
In order to conduct the review, the NBR yesterday signed a memorandum of understanding with the Bangladesh Institute of Chartered Accountants (ICAB) for the use of the Document Verification System (DVS), an online system developed by ICAB to verify the authenticity of audited reports.
“Many companies tend to submit false audit reports. The DVS will allow us to limit that scope and help get the actual amount of business income, ”said Md Masud Sadiq, member of the NBR’s VAT policy.
Sadiq and ICAB President Mahmudul Hasan Khusru signed the MoU on behalf of the respective organizations at NBR Headquarters.
In accordance with the plan, active ICAB members will provide five key financial data such as a company’s profit, revenue, assets and liabilities, generate a Document Verification Code (DVC) at 18 figures, write the DVC in the audited financial statements and sign the report.
And VAT agents will have access to the DVS to verify the authenticity of these key figures in the audited financial statements to be provided by businesses and businesses to VAT offices.
The NBR’s decision comes as it made the submission of audited financial reports by companies mandatory from the current fiscal year 2021-2022.
Sadiq said the VAT wing of the NBR will start verifying audited returns to be submitted by companies using the DVS.
In July this year, the Bangladesh Bank also asked banks to review the audit reports of loan applicants through DVS, developed last year to eliminate the scope of submitting audited financial statements manipulated by companies to obtain loans.
Earlier in December, the NBR instructed its field tax offices to use the DVS to ensure that the appropriate amount of corporate income tax is paid into state coffers.
Later, the Bangladesh Securities and Exchange Commission and the Financial Reporting Council followed suit to protect investor interests and improve compliance and transparency in balance sheet preparation.
DVS provides the ability to match key financial figures such as a company’s profit, revenue, assets and liabilities, 18-digit document verification code, and auditors’ signatures.
At yesterday’s event, NBR President Abu Hena Md Rahmatul Muneem was also present, among others.