Press release on tax evasion allegations leveled against Grameenphone

DHAKA, Nov. 16 (NsNewsWire) — The following is the full and unedited text of a statement which Grameenphone in Dhaka sent on Thursday evening on tax evasion allegations leveled against the company : “Grameenphone CEO Statement Following is a statement from Michael Foley, CEO, Grameenphone Ltd. responding to the recent media stories on tax evasion allegations leveled against the company in an internal letter from the Large Taxpayers’ Unit (LTU-VAT) of the NBR (National Board of Revenue) to BSEC (Bangladesh Securities and Exchange Commission). In the letter the LTU-VAT has raised a claim of unpaid VAT and irregular tax exemptions amounting to BDT 2015.27 crore.
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“Grameenphone is the largest taxpayer in Bangladesh. Over the last five years we have paid out BDT 30,040 crore in taxes and fees to the exchequer. 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. Furthermore, we continually assess every case individually and take relevant provisions in our books in full compliance with all international and local accounting standards, including, but not limited, to IFRS and BFRS.
Like any other corporate entity, at times we have differences of opinion with the tax authorities. 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 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.
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.”