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Money-whitening
FROM PAGE 16 caretaker government's anticorruptiondrives.
Several opportunities were given to whiten money along with paying taxes at very low rates from 1976 to 2006 and around Tk 9,000 crore was whitened during the period.
Sources said the present Awami League government bowed down to the pressure from businessmen, politicians-cum-businessmen, even a parliamentary standing committee chairman and gave the opportunity despite a clear stand against whitening black money in its electionmanifesto.
These influential people argued that many of them were either in jail or were hiding abroad during the caretaker government's tenure and could not utilise the opportunity given then.
Many big businessmen also proposed that the government give them the scope and they invest in the publicprivate partnership projects like monorail and sky rail in Dhaka city. Many also said they would bring their money lying idle abroad and invest in the country.
But they are getting the chance to whiten undisclosed money in exchange for just 10 percent tax whereas the highest tax ceiling is 25 percent for individuals and 45 percent for companies.
Facing severe criticism, the government at the last moment amended the provision for whitening money and imposed a number of conditions.
Earlier, eight donor countries wrote a joint letter to the finance minister, objecting to the provision of giving owners of black money immunity from being questioned "under any other law".
The government has dropped the section in the proposed law.
NBR sources said for tak-
ing the opportunity owners of undisclosed money will have to fill in a form mentioning the source of the amount and projecting how much employment will their investment create.
For investing whitened money in industries and infrastructure, the government has added some new conditions.
The provisions will not apply if "a concealment of income has been detected and proceedings under section 93 have been initiated prior to payment of tax" and if the person fails to fulfil the conditions declared by him in the prescribed form.
With the reduction of the time limit for whitening money from three years to one year, the provision now applies to founding a "company for setting up new industry" so that investors can make advance declaration' about the number of industries in the first year, sources said.
For investing in the share market, the proposed law says the invested money cannot be withdrawn in two years instead of previously proposed one year.
In case of purchasing flats, the law now applies to "a single flat or apartment or anyone floor of a building".
Following addition of these conditions, those who were earlier enthusiastic about the scope have now expressed dissatisfaction. They are feeling discomfort especially at the withdrawal of the section that had given them immunity from being questioned about the source of the sum "under any other law".
They said they may not face any problem now but may get in trouble under any other law like the terrorist financing act and anti-money laundering act when the government changes.