SM Faruqi denies irregularities in Tk721cr ‘remittance’
However, Faruqi did not address why he declined government incentives associated with the remittance
After media reports surfaced about businessman SM Faruqi Hasan bringing in Tk721 crore as tax-free remittance from abroad, the individual in question claimed today (19 March) that he brought the money through legal means without resorting to any irregularities or tax evasion.
Faruqi is the chairman of Protik Group – a conglomerate with interests in ceramics, real estate, food, and energy. He was once vice president of the Awami League's Dhanmondi Thana unit.
The Business Standard also ran a report, titled "Mystery man who sent Tk 721cr to himself as remittance and dodged Tk180cr taxes," today.
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A statement issued by Protik Group's legal adviser, Barrister Redwan Hossain, claimed that the media falsely reported Faruqi's private information. It stated that Faruqi legally earned money from companies owned by the governments of China and Türkiye, brought the funds to Bangladesh through legitimate channels, and invested them in local businesses.
The statement also said Faruqi did not receive any form of government incentive or benefit for bringing the money, which was properly declared in his tax filings without resorting to any deceitful tactics.
Mystery man who sent Tk721cr to himself as remittance and dodged Tk180cr taxes
Faruqi submitted his income tax return for the fiscal 2024-25, which was approved by the tax authorities, confirming that no procedural deviations occurred, it stated.
However, the statement did not explain why Faruqi did not receive the government incentives applicable to the remittance.
It also added that Faruqi is not an active member of any political party.
The TBS report states that consultancy fees earned abroad but brought into Bangladesh while residing in the country are subject to taxation.
Snehasish Barua, a renowned tax law expert and partner at Snehasish Mahmud & Company, told TBS, "Any income earned as consultancy fees from abroad while staying in Bangladesh, except in the IT sector, will be subject to taxation."
In the TBS report, Syed Md Aminul Karim, a former member of the National Board of Revenue's (NBR) tax policy, said, "Tax should be levied on this money. It's unclear why it hasn't been the case."
Another NBR official told TBS that although Faruqi declared the funds as consultancy fees, he could not provide the necessary evidence to support his claim.
An NBR tax policy official, on condition of anonymity, also told TBS, "If he [Faruqi] brings consultancy fee money from abroad while staying in Bangladesh, it is taxable.
"According to the law, we can claim taxes from him for the funds he brought in the past six years. And, if he invested the money he brought earlier, taxes will also be levied on that amount."
In the statement, Faruqi Hasan claimed that he has invested the money into various businesses in Bangladesh, which means he has to pay taxes.
When asked about this, NBR Chairman Abdur Rahman Khan told TBS, "Officials are working on the matter." He declined to comment further.
On Monday, citing the potential misuse of the existing remittance rules, the NBR chairman said, "A person exploited this provision for tax-free remittance, bringing in Tk730 crore, claiming to be a wage earner, and asserting that the amount is tax-exempt."
