95. Liability of representative in certain cases.-

CHAPTER X
LIABILITY IN SPECIAL CASES

95.  Liability  of  representative  in  certain  cases.-

(1)  Every  person  who  is  a representative of another person in respect of any income for the purpose of this section shall, in respect of such income,-

(a) be subject to the same duties, responsibilities and liabilities as if such  income  were  received  by,  or  accruing  to,  or  in  favour  of,  him beneficially ;
(b) be liable to assessment in his own name ; and
(c) be deemed, subject to other provisions of this Chapter, to be the assessee for all purposes of this Ordinance.

(2) A person, who is assessed in pursuance of this section as a representative in respect of any income, shall not, in respect of the same income, be assessed under any other provision of this Ordinance.

(3)  Nothing  in  this  section  shall  prevent  either  the  direct  assessment  of  the person for whom, or on whose behalf or for whose benefit, the representative is  entitled  to  receive  any  income  or  recovery  from  such  person  of  the  tax payable in respect of such income.

(4) For the purposes of this section,-

(a)  the  guardian,  manager  or  trustee,  who  receives  or  is  entitled  to receive any income for, or on behalf or for the benefit, of any minor, lunatic or idiot, shall be the representative in respect of such income;
(b)  the  Administrator-General,  the  Official Trustee, or  any  receiver, manager or other person, however designated, appointed by or under any  order  of  a  Court,  who  receives  or  is  entitled  to  receive  any income for, or on behalf or for the benefit, of any other person shall be the representative in respect of such income ;

(c) the trustee or trustees appointed under a trust declared by a duly executed  instrument  in  writing,  whether  testamentary  or  otherwise, including a legally valid deed of waqf, who receive or are entitled to receive any income for, or on behalf or for the benefit, of any person shall be the representative in respect of such income; and
(d)  a  person  who  is  treated  under  section  96  as  an  agent  in relation to a non-resident, shall be the representative in respect of  such  income  of  the  non-resident  as  is  deemed  to  accrue  or arise in Bangladesh under section 18.

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96. Persons to be treated as agent.-

96. Persons to be treated as agent.- 

(1) For the purposes of this Ordinance, the following persons shall, subject to the provisions of sub-sections (2) and (3), be treated as agent in relation to a non-resident, namely:-

(a) any person in Bangladesh-

(i) who is employed by, or on behalf of, the non-resident;
(ii) who has any business connection with the non-resident;
(iii)  who  holds,  or  controls  the  receipt  or  disposal  of,  any money belonging to the non-resident;
(iv) who is a trustee of the non-resident ; or
(v)  from  or  through  whom  the  non-resident  is  in  receipt  of any income, whether directly or indirectly ;

(b) any person, whether a resident or non-resident, who has acquired, by  means  of  transfer,  a  capital  asset  in  Bangladesh  from  a  person residing outside Bangladesh ; and
(c)  any  person  who,  for  any  other  reasonable  cause,  is  declared  or treated as an agent of the non-resident.

(2) An independent broker in Bangladesh, who in respect of any transaction, does not deal directly with, or on behalf of, a non-resident principal but deals with,  or  through,  a  non-resident  broker,  shall  not  be  treated  as  an  agent  in relation to a non-resident in respect of such transaction if-

(a)  the  transaction  is  carried  on  in  the  ordinary  course  of  business through the non-resident broker; and
(b)  the  non-resident  broker  is  carrying  on  such  transaction  in  the ordinary course of business.

(3)  No  person  shall  be  treated  under  this  Ordinance  as  an  agent  in relation  to  a  non-resident  unless  he  has  been  given  by  the  Deputy Commissioner of Taxes an opportunity of being heard.

98. Liability of firm or association for unrecoverable tax due from partners or members.-

98. Liability of firm or association for unrecoverable tax due from partners or members.-

(1) Where any tax payable by partner of a firm or a member of an association of persons in respect of his share of the income from the firm or association, as the case may be, cannot be recovered from him, the Deputy Commissioner  of  Taxes  shall  notify  the  amount  of  the  tax  to  the  firm  or association.

(2) Upon notification of the amount of tax under sub-section-(1), the firm or association so notified shall, notwithstanding anything contained in any other law for the time being in force, be liable to pay the said tax and shall, for the purposes of recovery thereof, be deemed to be an assessee in respect of such tax; and the provisions of this Ordinance shall apply accordingly.

99. Liability of partners, etc., for discontinued business of a firm, etc.-

99.  Liability  of  partners,  etc.,  for  discontinued  business  of  a  firm,  etc.- 

(1) Where  any  business or  profession  carried  on  by  a firm  or  an  association  of persons has been discontinued, or where a firm or an association of persons is dissolved, assessment of the total income of the firm or association may be made as if no  such discontinuance or dissolution had taken place; and all the provisions of this Ordinance shall, so far as may be, apply accordingly.

(2) Where an assessment is made under sub-section (1) in respect of a firm or an  association  of  persons,  every  person  who  was  a  partner  of  the  firm  or member of the association at the time of discontinuance of business, or as the case  may  be,  dissolution  of  the  firm  or  association,  and  the  legal representative  of  any  such  person  who  is  deceased,  shall  be  jointly  and severally liable for the amount of tax found payable by the firm or association upon  such  assessment  and  shall,  for  the  purpose  of  recovery  of  such  tax, including penalty and other sum payable, be deemed to be an assessee ; and the provisions of this ordinance shall apply accordingly.

101. Liability of liquidator for tax of private companies under liquidation.-

101. Liability of liquidator for tax of private companies under liquidation.-

(1) A liquidator of a private company which is wound up, whether under the orders of a court or otherwise, shall, within thirty days after he has become such  liquidator,  give  notice  of  his  appointment  as  such  to  the  Deputy Commissioner of Taxes having jurisdiction to assess the company.

(2) The Deputy Commissioner of Taxes shall, after making such enquiries or, calling  for  such  information  as  he  may  consider  necessary,  notify  to  the liquidator within three months of the date of receipt of the notice under sub section (1), the amount  which, in his opinion, would be sufficient to provide for  any  tax  which  is  then,  or  is  likely  thereafter  to  become,  payable  by  the company.

(3) On being notified under sub-section (2), the liquidator shall set aside an amount equal to the amount so notified and shall not, before he sets aside such amount, part with any of the assets of the company except for the purpose of payment of tax payable by the company or for making payment to secure such creditors as are entitled under the law to priority of payment over debts due to the Government on the date of liquidation.

(4) The liquidator shall be personally liable for payment of the tax on behalf of  the  company  to  the  extent  of  the  amount  notified,  if  any,  under  subsection(2), if he-

(a) fails to give notice as required by sub-section (1); or
(b) contravenes the provisions of sub-section (3).

(5) Where there are more liquidators than one, the obligations and liabilities of a liquidator under this section shall attach to all the liquidators jointly and severally.
(6)  This  section  shall  have  effect  notwithstanding  anything  to  the  contrary contained in any other law for the time being in force.

Explanation.-In  this  section,  "liquidator"  includes  any  person  who  has  been appointed to be the receiver of the assets of the company under liquidation.

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100. Liability of directors for unrecoverable tax of private companies.-

100.  Liability  of  directors  for  unrecoverable  tax  of  private  companies.- 

(1) Where  any  private  company  is  wound  up  and  any  tax  assessed  on  the company,  whether  before,  or  in  the  course  of,  or  after  its  liquidation,  in respect of any income of any income year cannot be recovered, every

person  who  was,  at  any  time  during  the relevant income  year,  a  director  of that company, shall, notwithstanding anything contained in ¹[the Companies Act,  1913  (VII  of  1913)  or  কোম্পানী  আইন,  1994  (1994 সনের  ১৮  নং  আইন)],  be jointly and severally liable to pay the said tax and shall, for the purposes of recovery thereof, be deemed to be an assessee in respect of such tax ; and the provisions of this Ordinance shall apply accordingly.

(2)  Notwithstanding  the  provisions  of  sub-section  (1),  the  liability  of  any person thereunder in respect of the income of a private company shall cease if he  proves  to  the  Deputy  Commissioner  of  Taxes  that  non-recovery  of  tax from the company cannot be attributed to any gross neglect, misfeasance or breach of any duty on his part in relation to affairs of the company.

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¹Subs. for "the Companies Act. 1913 (VII of 1913)" by F.A. 1999

102. Liability to tax in case of shipping business of non-resident.-

¹[102.  Liability  to  tax  in  case  of  shipping  business  of  non-resident.-

(1) Notwithstanding anything contained in this Ordinance, where a non resident carries on the business of operation of ships as the owner or charterer thereof (hereinafter in this section referred to as the principal) tax shall be levied and collected in respect of such business in accordance with the provisions of this section.

(2) Before the departure from any port in Bangladesh of any ship, the master  of the ship shall prepare and furnish to the Deputy Commissioner of Taxes a return showing-

(a) the amount paid or payable whether in or out of Bangladesh to the principal, or to any person on his behalf, on account of the carriage of passengers, livestock, mail or goods shipped at the port since the last arrival of the ship; and
(b) the amount received, or deemed to be received in Bangladesh by, or on behalf of, the principal on account of the carriage of passengers, livestock, mail or goods at any port outside Bangladesh.

(3)  On  receipt  of  the  return,  the  Deputy  Commissioner  of  Taxes  shall determine the aggregate of the amounts referred to in sub-section (2) and, for this purpose, may call for such particulars, accounts or documents,  as he may require and the aggregate of the said amounts so determined, shall be deemed to be income received in Bangladesh by the principal from the said business chargeable to tax under this Ordinance under the head "Income from business or profession", and tax thereon shall be charged at the rate of eight per cent. of such income.

(4)  Where  the  Deputy  Commissioner  of  Taxes  is  satisfied  that  it  is  not possible  for  the  master  of  the  ship  or  the  principal  to  furnish  the  return required under subsection (2) before the departure of the ship from the port and  the  principal  has  made  satisfactory  arrangements  for  the  filing  of  the return and payment of the tax by any other person on his behalf, the Deputy Commissioner  of  Taxes  may,  if  the  return  is  filed  within  thirty  days  of  the departure of the ship, deem the filing of the return by the person so authorised by the principal as sufficient compliance with sub-section (2) ²[:

Provided that where any charge mentioned in sub-section (8) is accrued after the expiry of said thirty days, the other person mentioned in this sub-section shall file a supplementary return in respect of such charge and pay tax thereon within next thirty days from the end of the month in which the charge has accrued.]

 

(5) No port clearance shall be granted to the ship until the ³[Commissioner of Customs] or any other officer duly authorised to grant the same, is satisfied that  the  tax  payable  under  sub-section  (3)  has  been  duly  paid  or  that satisfactory arrangements have been made for the payment thereof.

(6) Nothing contained in this Ordinance shall be so construed as to allow any expense  against  the  aggregate  amount  of  receipts  as  determined  under subsection (3).

(7) The tax paid under this section shall be deemed to be the final discharge of the tax liability of the assessee under this Ordinance, and the asse ssee shall not be required to file the return of total income under section 75 nor shall he be entitled to claim any refund or adjustment on the basis of such return.]

⁴[(8) For the purpose of this section, the amount referred to in sub-section (2) shall include the amount paid or payable by way of demurrage charge or handling charge or any other amount of similar nature.] 

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¹Subs. by F.A. 1989

²Subs. by F.A. 2017

³Subs. for "Collector of Customs" by F.A. 1999

⁴Subs. by F.A. 2017

97. Right of representative to recover tax paid.-

97. Right of representative to recover tax paid.- 

(1) A representative who, on account  of  his  liability  under  section  95,  pays  any  sum,  shall  be  entitled  to recover  the  sum  so  paid  from  the  person  on  whose  behalf  it  is  paid,  or  to retain out of any moneys that may be in his possession or ma y come to him in his  possession  or  may  come  to  him  in  his  capacity  as  a  representative,  an amount equivalent to the sum so paid.

(2) A representative, or any person who apprehends that he may be assessed as  a  representative,  may  retain,  out  of  any  money  payable  to  the  person (hereinafter referred to as "the beneficiary") on whose behalf he is liable to tax under section 95, a sum not exceeding his estimated liability ;

(3)  In  the  event  of  any  disagreement  between  the  beneficiary  and  the representative  or,  as  the  case  may  be,  the  person  apprehensive  of  being assessed as representative, as to the amount to be retained under sub-section
(2), such representative or person may secure from the Deputy Commissioner of  Taxes  a  certificate  stating  the  amount  to  be  so  retained  pending  the settlement of the liability and the certificate so obtained shall be the warrant for retaining that amount.

103. Adjustment of liability to tax in case of shipping—

¹[103.Adjustment of liability to tax in case of shipping—

(1) Nothing in section 102 shall be deemed to prevent the owner or the charterer of the ship from claiming in the year following that in which any payment has been made on his behalf under that section that an assessment be made on his total income of the income year and that the tax payable on the basis thereof be determined in accordance with the other provision of this Ordinance.

(2) Where the owner or charterer of a ship makes a claim under sub-section (1),any payment of tax made under section 102 shall be treated as payment in advance of the tax and the difference between the sum so paid and the amount of tax found payable, by him shall be paid by him or ,as the case may be, refunded to him. ]

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¹Omitted by F.A. 1989

103A. Liability to tax in case of air transport business of non-residents.-

¹[103A. Liability to tax in case of air transport business of non-residents.-

(1)  Notwithstanding  anything  contained  in  this  Ordinance,  where  a  nonresident person carries on the business of operation of aircraft, as the owner or charterer thereof (hereinafter in this section referred to as "the principal"), and any aircraft owned or chartered by him calls on any airport in Bangladesh, the aggregate  of  the  receipts  arising  from  the  carriage  of  passengers,  livestock, mail or goods loaded at the said airport into that aircraft shall be deemed to be income  received  in  Bangladesh  by  the  principal  from  the  said  business chargeable to tax under the head "Income from business or profession", and tax thereon shall be charged at the rate of three percent of such income.

(2) The principal or an agent authorised by him in this behalf shall prepare and  furnish  to  the  Deputy  Commissioner  of  Taxes,  within  forty-five  days from  the  last  day  of  each quarter  of  every  financial year,  that  is to say,  the thirtieth  day  of  September,  the  thirty-first  day  of  December,  the  thirty-first day of March and the thirtieth day of June, respectively, return in respect of each quarter as aforesaid showing-

(a) the amount paid or payable whether in or out of Bangladesh to the principal, or to any person on his behalf, on account of the carriage of passengers, livestock, mail or goods loaded at the said airport; and
(b) the amount received, or deemed to be received, in Bangladesh by, or on behalf of, the principal on account of the carriage of passengers, livestock, mail or goods at any airport outside Bangladesh.

(3)  On  receipt of  the  return,  the  Deputy  Commissioner  of Taxes  may,  after calling  for  such  particulars,  accounts  or  documents,  as  he  may  require, determine  the  aggregate  of  the  amounts  referred  to  in  sub-section  (2),  and charge tax as laid down in sub-section (1).

(4) Where, the principal fails to pay the tax payable under sub-section (1) for more  than  three  months,  the  Commissioner  of  Taxes  may  issue  to  the authority  by  whom  clearance  may  be  granted  to  that  aircraft,  a  certificate containing the name of the principal and the amount of tax payable by him; and  on  receipt  of  such  certificate,  the  said  authority  shall  refuse  clearance from  any  airport  in  Bangladesh  to  any  aircraft  owned  or  chartered  by  such person until the tax payable has been paid.

(5) Nothing contained in this Ordinance shall be so construed as to allow any expense  against  the  aggregate  amount  of  receipts  as  determined  under  subsection(3).

(6) The tax paid under this section shall be deemed to be the final discharge of the tax liability of the assessee under this Ordinance, and the assessee shall not be required to file the return of total income under section 75 nor shall he be entitled to claim any refund or adjustment on the basis of such return.

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¹Ins. by F.A. 1989 w.e.f the income year relating to the assessment year 1990 -91 and thereafter