Implementing document verification system will increase revenue collection immensely: ICAB
The Document Verification System will reduce the chances of tax evasion by submitting fake audit reports and will make possible collecting additional revenue of thousands of crores of taka
Implementing the Document Verification System (DVS) that was launched last year's December will bring transparency in the companies' financial statements and reduce the chances of tax evasion by submitting fake audit reports, said the members of the Institute of Chartered Accountants of Bangladesh.
This will make possible collecting additional revenue of thousands of crores of taka, said the ICAB officials at the inaugural function of a training programme for the economic journalists at the CA Bhaban in Karwan Bazar on Wednesday.
ICAB President Mahmudul Hasan Khasru said, "Some institutions submit three or four reports – one to the bank, one to the income tax offices and so on. None of those reports match with the others."
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"If the new DVS system is fully implemented, transparency in audit reports will come within the next one year, which will reduce the chances of tax evasion. The NBR (National Board of Revenue) chairman also informed the prime minister regarding the issue. This will increase the revenue collection by thousands of crores of taka," he said.
Commerce Secretary Tapan Kanti Ghosh, who was the chief guest at the event, highlighted the need for DVS, saying that if a company prepares are three or four audit reports, they can show more income or assets than they actually have in one of those reports. This enables them to collect more money from the market.
According to the ICAB, each auditor will have a separate code number for submitting their reports to a database. Through the DVS, the NBR, banks, and Registrar of Joint Stock Companies and Firms (RJSC) will be able to access the an auditor's report for a company, so there will be not more than one audit report for a company and if there is several reports for a company, interested agencies will be able to compare them. As a result, no one can submit fake audit report if they want to.
Among others, ICAB Vice-President Sidhartha Barua, its CEO Shubhashish Bose, Economic Reporters Forum (ERF) President Sharmin Rinvy, its general secretary SM Rashidul Islam spoke at the programme.
