A case of how Dhaka North’s tax supervisor extorts flat owners

In mid-October, Dhaka North City Corporation officials went to Rangs Waterfront in Gulshan-1 asking flat owners to submit documents for the re-evaluation of their holding taxes.

During this visit, Mehedi Hasan Risad, a revenue supervisor from the Corporation's Zone-3 office, presented flat owners with a proposal: pay Tk2 lakh each, and in return, their assessed taxes would be significantly reduced.

Abdullah Al Mahmud owns one of the 62 flats in the building and was also offered the deal.

"I have been paying an annual holding tax of Tk35,000 for years and have no objection paying more following re-evaluation," he told The Business Standard.

"However, the revenue supervisor threatened that if we did not pay the bribe, our tax could be increased three to four times the current amount. He also intimidated flat owners with potential complications in the process," he said.

TBS conducted a deeper investigation into Risad's operations and uncovered that complaints against him extend well beyond the flats of Rangs Waterfront.

Risad has reportedly issued holding tax re-evaluation notices to around 2,000 holdings under his jurisdiction in Gulshan, demanding bribes ranging from Tk2 lakh to Tk10 lakh.

He orchestrates a massive bribery operation, targeting holdings in Gulshan, Baridhara, and Banani, aiming to collect at least Tk40 crore through threats counting high taxes. Both the bribe giver and receiver benefit from these transactions, which is why such incidents often go unreported.

Investigations also revealed that Risad conducts these transactions and agreements openly from his office and meticulously records the details of bribes in a ledger.

A former chief revenue officer of Dhaka North, speaking on the condition of anonymity, told TBS that a network within the city corporation is involved in such tax-related activities.

He added that in Zone-3, there are eight revenue supervisors, many of whom use intermediaries - posing as either clients or even officials - to persuade or even pressure genuine taxpayers into paying bribes.

"I personally tried to combat this network, but ultimately I was unsuccessful. A case was filed with the Anti-Corruption Commission against one official, but I am unaware of any updates on that matter," the officer revealed.

Undercover at Risad's office 

On 6 November, this reporter visited the Zone-3 office, accompanied by a flat owner's representative, and observed the actions of Revenue Supervisor Mehedi Hasan Risad for three hours.

Upon entering the office, it was observed that Risad was engaged in a discussion with a client regarding a holding tax issue.

The client, a flat owner, was seeking to resolve his tax file but was only willing to pay Tk1.5 lakh, while Risad initially demanded Tk3 lakh.

After some negotiation, they settled on Tk2 lakh, with the client agreeing to pay an advance of Tk30,000. However, Rishad insisted on Tk1 lakh upfront.

Following a brief conversation, Risad briefly took the client out of his office.

When they returned, Risad opened a notebook where he recorded the advance of Tk30,000 in cash under the client's name, instructing him to pay the rest when the work was completed.

Next, it was our turn.

We informed Risad that our flat was in Rangs Waterfront on Road 15 in Gulshan-1 and asked what we needed to do to prevent our holding tax from increasing.

Risad responded that he would charge the same rate as the other owners in the building.

"Just pay an advance of Tk1 lakh to start, and another Tk1 lakh when the work is completed. The process will take about two months, but you won't have to visit the office during that time; I'll handle everything," he said.

When we asked if the amount could be reduced, Risad replied, "If I lower it, there won't be anything left for me. I have expenses on my side, and I also need to give something to the seniors, you know?"

The meeting concluded with our commitment to return with the required tax documents to initiate the process.

Risad denies everything 

On 10 November, Risad was contacted over the phone, with my identity still undisclosed.

When questioned about the bribery allegations from Rangs Waterfront flat owners, Risad denied them, calling them "completely false and baseless".

On 13 November, I visited Mir Khairul Alam, chief executive officer of Dhaka North.

He assured that they will never tolerate such corruption and will investigate these allegations and take appropriate action against those responsible.

"If there is a network involved in such irregularities, we will identify and bring them to justice," he added.

The visit alerted Risad, who had learned my identity and realised that I visited him a week earlier under the guise of a client.

He called immediately, suggesting there may have been a misunderstanding.

"I visit various buildings to distribute notices and discuss tax matters with owners, but I never demanded a bribe," he stated.

Regarding the negotiation on 10 November, he explained, "The figures I offered were not money, but they were policy numbers."

He also said, "There are some issues with a few flats on Rangs Waterfront flats, and the owners came to me with those concerns. However, I did not receive any money from anyone. They offered money, but I did not take or ask for it."

Raising the issue with Md Mizanur Rahman, tax officer for Zone-3, he told TBS, "It is true that the annual tax assessment letters are being sent to the Gulshan area, but we have not received any complaints about bribery."

Rahman further said he was new at the office and yet familiarised himself with the people. "It will take some time for me to get to know them."

3 dimensional corruption 

Concerning such corrupt practices at government offices, Iftekharuzzaman, executive director of Transparency International Bangladesh, said when such crimes occur in tax collection, they constitute a three-dimensional offence.

He explained, "The first crime is direct corruption. The second is the abuse of power, and the third is deception against the state. By offering illegal benefits to reduce taxes, they are depriving the state of its rightful revenue. As a result, the state suffers financial harm."

He said such misconduct should not be tolerated in the country's changing environment and urged for immediate action to identify the perpetrators.

Adil Mohammed Khan, president of the Bangladesh Institute of Planners, told TBS that despite the recent shift in government, corrupt individuals from previous regimes remain in positions.

"Such incidents are disheartening, as they could drive city dwellers to engage with corrupt networks rather than follow lawful procedures, which ultimately damages urban management," he added.

Md Mohiuddin, deputy chief revenue officer at Dhaka North, acknowledged that there are issues in the revenue department in various areas, and complaints do arise from time to time.

"Some measures have already been taken, but we haven't received any complaints regarding Risad. If such a complaint is filed, our team will take appropriate action. It's also important for customers to be aware of the situation, as the city corporation's tax rates are published online," he said.