Editorial
Proliferation of fake TINs
Such fraud can only undermine economy
IT is indeed disconcerting news that more than 35 per cent of the Tax Identification Numbers in a sample survey conducted by the National Board of Revenue have turned out to be false. That raises the very pertinent question of how the individuals owning these fake numbers came to acquire them. One cannot in any way deny the fact that 35 per cent is an inordinately high number, especially in a matter as serious as TINs. Which again leads to a new question: how did the mechanism involved in the preparation and provision of TINs come by such a grave flaw? The answer to that question, as also other questions relating to TINs, must come from the NBR itself. It must explain its own failings in this regard. Obviously, there have been lapses along the line which have spawned the proliferation of TINs. Why those lapses have been there and what is being done to plug the holes is a question that now calls for a credible answer.
The entire purpose of introducing Tax Identification Numbers was to establish a secure and purposeful tax system through identifying the extent of taxation coverage in the country. Besides, TINs are prerequisites for a provision of certain facilities to those who pay regular taxes. But with reports emerging of duplicity in the acquiring and use of TINs, and in a number of areas too, there cannot but be grave worry. Observe the figures. Of the altogether 371 TIN samples surveyed in five sectors (of the mandatory fifteen), 131 TINs were revealed to be false. We noted a few days ago the matter of fake TINs being provided by people intending to acquire Rajuk plots in Gazipur and Uttara and what action the authorities plan to take against them. Now there seems to be a whole Pandora's Box opening up before us. Entire new areas, such as credit cards, land purchase, opening L/Cs, car purchase and bank loans, have now been infected by the presence of fake TINs. Action against those who have procured such false numbers has now become necessary. The NBR has promised to move against them. The NBR must also unearth the racket involved in the sordid job of supplying fake TINs and take action against them as well.
Beyond such action, it becomes important for the NBR authorities to streamline and update the entire system of issuance of TINs to individuals and organisations. For now, it is essential that a wholesale inquiry be instituted into the manufacture of fake TINs to arrive at a definitive conclusion about the extent of the fraud that might have already been perpetrated and, then, move to ferret out the culprits and prevent further recurrence of it.
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