ICAB ICAB NEWS BULLETIN Monthly News Briefing from the Institute of Chartered Accountants of Bangladesh ISSN 1993-5366 Number 294 Strategic Public Private Partnership is Way forward to strengthen public Sector Financial Management Showkat Hossain says at World Bank s Workshop Strategic Public Private... Management CRC Holds CPD Seminar on 'IAS-1:.. Statements' ICAB Organizes Antimoney... Workshop Training on Public Sector... Management held Pahela Boishakh observed President s Communication Workshop on "The Art of Leadership" held CRC Holds CPD Seminar on 'Salient... Issues' Forkan Uddin appeared at live... Capital Market ICAB President Attends Session...Curriculum Justin West and Jonathon Students Seminar... ICAB Meeting with ICMAB Delegates UPGP & LGSP-II organize training for... Audit Farewell Program in Honour of... Secretary Campus News Obituary A Milad and Doa Mahfil for Late ICAB Members David Brookfield Attends...Meeting BCACP Ad-hoc Committee Meet ICAB President WTO Team visits ICAB World Bank Delegates Visit ICAB Jonathon Worrell attends... Meeting Meeting with DRC Delegates ICAB Submits Proposals on... Budget 2014-15 A K M Rahmat Ullah Joins as Secretary of ICAB 01 02 03 03 03 04 08 09 09 10 10 10 11 11 12 13 13 14 14 14 15 15 15 16 16 In response to the call for action to strengthen public sector accounting and auditing, a strategic Public Private Partnership can help realising that objective. Showkat Hossain FCA, President of the Institute of Chartered Accountants of Bangladesh said this at the dissemination workshop of Bank s Policy Note titled Public Private Partnership for Improved Public Sector Auditing in Bangladesh organized by The World Bank, Dhaka organized on Tuesday, April 29, 2014 at Bangabandhu International Conference Centre, Dhaka. Masud Ahmed, Comptroller and Auditor General of Bangladesh graced the program as the Chief Guest, while Showkat Hossain, President of the Institute of Chartered Accountants of Bangladesh attended the program as the Special Guest. Showkat Hossain said that the Institute of Chartered Accountants of Bangladesh (ICAB) has been working as the Consulting Body under this project aiming at a strategic and technical partnership between the Institute of Chartered Accountants of Bangladesh (ICAB) and the Office of the Comptroller and Auditor General (OCAG). He further said that ICAB has already gained experience being partners in learning partnership with the Institute of Chartered Accountants in England and Wales (ICAEW) under the World Bank supported Twining Project. He expects that continuous support of the World Bank in Strengthening Accounting and Auditing Standards and Practices in Corporate Sector in Bangladesh will boost capacity building of ICAB. Mr. Showkat recalled the Policy Note Presentation of the project held on 07 November 2012 where National Audit Office of UK, ICAEW, DFID and specially the OCAG- Bangladesh participated and extended their support and guidance to frame out a strategic Memorandum of Understanding (MoU) which was signed between ICAB and OCAG on the same day. He said, actually out of longing for robust mechanism to ensure transparency and accountability in financial management for achieving the economic success, the Project launched with many more challenges addressing the accounting and auditing practices for Improving Audit Assurance Quality in Public and Private Sectors.
About limitations of ICAB towards strengthening Public Private Partnership, ICAB president said that in Bangladesh the Supreme Audit Institution the OCAG is doing the job with many impediments both internally and externally with limited capacity and resources. And, on the other hand, one of the key constraints facing by the ICAB professionals is perceived to their limited exposure to public financial management. Ms. Suraiya Zannath, Sr. Financial Management Specialist, the World Bank presented the key note paper. Johannes Zutt, Country Director, The World Bank, Dhaka delivered introductory speech. Anwaruddin Chowdhury FCA and Deputy Comptroller & Auditor General Dr. Shyamal Kanti Chowdhury placed their valuable and visionary comments on the keynote. Fily Sissoko, Manager, South Asia Regional Financial Management, The World Bank made concluding remarks. To overcome the challenges, he said that the Public Private Partnership is the way forward to ensure a greater impact in the Audit and Assurance Quality. ICAB is equally keen to exchange its views and share its knowledge with OCAG as an ongoing basis. Apart from the policy note presentation and signing of the MoU with OCAG, ICAB has already accomplished many components of the Project such as: Shared the Sri Lankan experience on Public Private Partnership as well as shared views and knowledge with the ICAEW specialist on UK experience through arranging knowledge sharing sessions Arranged Training Program on Public Sector Regulations (Treasury Rules, Internal Controls, GFRs) and Procurement Rules for ICAB Members ICAB is striding with the extended times up to June 2014 of the project where external expert consultant and internal resources are working together to draw a very successful accomplishment. Organized 03 Days Knowledge Sharing Sessions for 04 batches during on the Public Financial Management (Treasury Rules, General Financial Rules, Budget etc.) for tomorrows CAs and ICAB Members provided by the Academy for planning and Development, Ministry of Planning. Knowledge Sharing Sessions on the Public Procurement Rules (Advanced level from the Audit Perspective) and on Government Procurement Rules is on the way to arrange for the Practicing Members as well. Ms. Suraiya Zannath FCA, the Paper Presenter said that there is no uniformity in Auditing of the state owned enterprises and other public sector entities when audited by CAG and the CA Firms. She further said that audited reports of the state owned enterprises and other public sector entities by the CA Firms are not also shared with CAG. In terms of internal audit she said, the policy paper highlighted that it is fragmented and not considered when external audit conducted by the private CA Firms or others at the behest of the development partners. About assessment of OCAG, she said that there is scarcity of human resources relevant to academic and professional orientation, it is required for further improvement, she said. The audit reports repeatedly pointed out the weaknesses of the internal control of the government but there was little management attention on the particular aspect of the audit reports, she observed. She opined that enhancement engagement of stakeholders is needed in this regards to address the problem. She said, it is necessary for OCAG to build professional partnership with ICAB or other similar organisations. Masud Ahmed said that there are two sides regarding qualifications of the public accountants and private accountants. He emphasized on concerted efforts by both public & private accountants working to achieve desired results maintaining accounting and auditing. Johannes Zutt said that public private partnership is very much important in current context. The auditors should have more connection with the accounts and the morality, he further said. Commenting on the paper, ICAB Past President and Council Member Anwaruddin Chowdhury FCA said that the need for strategy partnership has been felt for very long time. The presentation is a culmination of long and well measured thoughts and process. Public private partnership in accounting aspect will have multi dimensional implications in the years ahead, he said. CRC Holds CPD Seminar on 'IAS-1: Presentation of Financial Statements' The Chittagong Regional Committee (CRC) of ICAB organized a CPD Seminar on 'IAS-1: Presentation of Financial Statements' on Saturday, 26 April 2014 at the Conference Hall of ICAB-CRC office, Chittagong. Alihussain Akberali FCA, Chairman, BSRM Steels Limited graced the occasion as Chief Guest and Haradan Dey FCA, Partner MRH Dey & Co., Chartered Accountants was Session Chairman. Md. Shaifur Rahman Mazumdar FCMA, FCA, Past Chairman, ICAB-CRC presented the valuable Key-note paper in the seminar. Information about the reporting entity is useful to existing and potential investors, lenders, regulators and other users. Financial reporting can be made on different bases, assumptions and judgments. The ultimate objective of this standard is to ensure harmonization in reporting and also to ensure comparability in different years and entities so that the users can get true, fair and unbiased information for their economic decisions. IAS-1 gives guidelines on structure, contents, styles, policies, disclosures regarding preparation and presentation of financial statements. 2
ICAB Organizes Anti-money Laundering Workshop The institute has organized a workshop on "Anti Money Laundering & Terrorist Financing" on 7 for the members of the Institute. The workshop was inaugurated by the Chief Guest Abu Hena Mohammad Razee Hassan, Deputy Governor, Bangladesh Bank and Showkat Hossain FCA, President, ICAB delivered the welcome address. Syful Islam FCA, Council member & Past President was the Session Chairman. Resource Persons of the workshop were Debaprosad Debnath, General Manager & Operational Head, Bangladesh Financial Intelligence Unit, Bangladesh Bank, and Kamal Hossain, Joint Director, BFIU, Bangladesh Bank, Dhaka Core topics of the workshop were Overview of AML/CFT & Relevance with Accountants, Money Laundering Prevention Act 2012 & Anti-Terrorism (Amendment, 2013) Act 2009,Compliance requirement for Accountants on AML/CFT issues. Mr. Showkat Hossain FCA, President-ICAB awarded certificates to the fifty participants participated in the workshop. Training on Public Sector Financial Management held The Institute of Chartered Accountants of Bangladesh (ICAB) arranged a 03-Days Training Course Knowledge Sharing Sessions on the Public Procurement Rules (Advance level from the Audit Perspective) the Public Financial Management (Treasury Rules, General Financial Rules, Budget etc.) for ICAB s Professionals and Tomorrow s Chartered Accountants who are at least CA KL/P-I/Intermediate level qualified for professional development under the World Bank financed Project titled Promoting Public Private Partnership (PPP) for Improved Audit Quality Assurance. The training was provided by the National Academy for Planning and Development, Ministry of Planning with a view to enhance the capacity of the professionals at individual as well as at firm s level attached with the opportunities in Public Pahela Boishakh observed Sector like; Consultancy, Audit, Review, Investigations and staff Appointments etc. The Training Program on Public Financial Management (Treasury Rules, Internal Controls, GFRs) for 41 honorable members and 41 Future Chartered Accountants was arranged by ICAB under this Project. The training conducted in 4 batches contained Employees of the Institute of Chartered Accountants of Bangladesh (ICAB) observed Bengali New Year Pahela Boishakh 2021 on 14. ICAB President Showkat Hossain FCA and Council Member & Past President Md. Syful Islam FCA were present amongst the employees of the Institute. Mr. Syful Islam joined with the ICAB President cutting a cake to celebrate the occasion. Mr. Showkat Hossain in his brief speech said that such gatherings foster the cohesiveness and develop the bondage in the work place. Mr. Syful said that such occasion should be observed every year so that employees of this Institute refresh themselves with actual taste and style of our culture. 25 members in each batch at the National Academy for Planning and Development under Ministry of Planning on 11th - 13th and 18th - 20th April, 2014. Total 82 participants participated in the Training and received their Certificates from the President-ICAB and the Director General, National Academy for Planning and Development. 3
President s Communication Dear Fellow Members, Assalamu Alaikum and Greetings to you all. Shuvo Nobobarsha 1421 to you all!! Every year, the Bengali New Year begins at dawn and the day is marked with singing, processions, and fairs. Traditionally, businesses start this day with a new ledger, clearing out the old. We celebrate Pohela Boishakh as a day of cultural unity without distinction between class, race or religious affiliations. Pohela Boishakh is really about celebrating the simpler, rural roots of the Bangladesh. People can participate in the festivities together without the burden of having to reveal one's class, religion, or financial capacity. I wish a happy and prosperous new Bengali year to you all. I take this opportunity to update you on some major activities accomplished and initiatives we have undertaken during. Major Activities in ICAB submitted proposals on National Budget 2014-2015 to NBR ICAB submitted it's proposals with comments/justifications regarding VAT and Income Tax towards National Budget 2014-15 to National Board of Revenue (NBR) on 1. Taxation & Corporate Laws Committee (TCLC) of Council-ICAB finalized ICAB s Budget Proposals for NBR. ICAB s proposals were made with a view to increase government revenue, remove procedural flaws and ensuring social justice. Proposals cover 58 areas on Tax Polices and 37 areas on VAT policies of the government. I hope that all valued suggestions of ICAB will be considered for inclusion in the upcoming National Budget 2014-15. Workshop on Anti-Money Laundering ICAB and Bangladesh Bank jointly organized a Workshop on Anti-Money Laundering and Terrorist Financing for ICAB Members on 7 at ICAB Auditorium, CA Bhaban, Dhaka. Abu Hena Mohammad Razee Hassan, Deputy Governor of Bangladesh Bank inaugurated the Workshop as the Chief Guest. In my Address of Welcome I focused on the compliance requirements of Professional Accountants on AML/CFT Issues and their role specially practicing Accountants for preventing Money Laundering in the country. Some important topics like overview of AML/CFT & Relevance with Accountants, Money Laundering Prevention Act 2012 & Anti-Terrorism Act 2009 (Amendment in 2013) were discussed in the Workshop. Two Bangladesh Bank officials i.e., Debaprosad Debnath, 4
General Manager & Operational Head, Bangladesh Financial Intelligence Unit(BFIU) and Kamal Hossain, Joint Director, BFIU conducted the Workshop. Total 50 ICAB members participated in this important Workshop and received certificates from the ICAB President. Training on Public Sector Financial Management ICAB organized a specialized Training on Public Procurement Rules (Advance Level from the Audit Perspective) and Public Financial Management (Treasury Rules, General Financial Rules, Budget etc.) for ICAB Members and partly qualified Students under the World Bank financed Project titled Promoting Public Private Partnership for Improved Quality Audit & Assurance. In total 82 participants under 4 batches attended in the training program held from 11 to 13 and 18 to 20 at National Academy for Planning and Development (NAPD) in Dhaka. I am confident that this training will create more awareness and capacity building among our members & future CAs and they will encourage to involve more Public Sector professional works in near future. Meetings with ICAEW Representatives Jonathan Richard Worrell, Senior Business Development Manager, ICAEW visited ICAB from 8 to 18 and participated important meetings with ICAB in Dhaka, Chittagong and with some CA Firms. Different important issues like renewal of MoU, ICAEW s support to update ICAB s Curriculum, Study Materials & Training, QAD & IDC matters, new qualifications and other joint projects, ICAEW classes for ICAB members, networking etc. were discussed during the meetings. Worrell conducted a discussion session with ICAB Management Team headed by myself on 9 April 2014 in ICAB office, Dhaka. He gave a brief presentation on ICAEW s old and new evolved curriculum, structure contents and examinations etc. Among others Member Council & Past Presidents M. Farhad Hussain FCA & Md. Humayun Kabir FCA, Director (Technical) Mahbub Ahmed Siddique FCA and Secretary (Acting) Md. Saiful Islam ACA were present in the discussion session. Seminar for ICAEW Registered Students Justin West, Head of New Business Opportunities, ICAEW and Jonathan Worrell jointly demonstrated a Seminar for ICAEW Registered Students at ICAB Training Room, CA Bhaban, Dhaka on 18 and discussed how to improve ICAEW Exam results as well as some elements of the evolved ICAEW papers among ICAEW registered ICAB members. To inaugurate the Seminar I emphasized mutual relationship between our two Institutes to improve the capacity building of ICAB in the field of education, examination and other professional areas like Quality Assurance, IDC etc. Member Council & Past President Md. Syful Islam FCA, Director (Technical) Mahbub Ahmed Siddique FCA and Snehasish Barua FCA were also present in the Seminar. Meeting with David Brookfield An important meeting between David Brookfield, Consultant of ICAEW and ICAB Examination Experts headed by myself was held on 23 in a local hotel in Dhaka. The meeting discussed ICAB Syllabus contents as well as exam resources, specially Taxation-II paper and renewal of existing MoU matter. I hope that aforesaid visits of ICAEW Representatives and several discussions with them will strengthen future relationship between ICAB & ICAEW and Insha Allah we shall be able to sign the renewal of MoU successfully within next few months. CRC-ICAB Seminar on Bank Companies Act, Recent Amendments & Issues Chittagong Regional Committee (CRC)-ICAB organized a CPD Seminar on Salient Features of Bank Companies Act, Recent Amendments & Issues on 12 at Conference Hall of ICAB-CRC Office in Chittagong. Mohammed Roshangir, DMD of Bank Asia Ltd. graced the occasion as the Chief Guest and Imtiaz Alam ACA, Proprietor, Imtiaz Alam & Co., Chartered Accountants presented the Keynote paper. In my address of welcome I thanked CRC for choosing a timely topic and expect that recent amendments will ensure good governance in country s banking sector, control the participation of banks in the Capital Market and protect the interest of the small investors in the capital markets. A large number of members in Chittagong participated in the seminar and many of them took part in the discussion. Leadership Training for ICAB Members ICAB organized a 2-day long Training program on The Art of Leadership from 26 to 27 at Training Room, CA Bhaban, Dhaka. The objective of the training was to build confidence with leadership quality among the members specially young members. Total 22 participants attended the training program and 7 Resource Persons from ICAB and outside conducted the Training program. I inaugurated the Training program as Chief Guest and Suraiya Zannath Khan FCA, Management Sr. Financial Specialist, World Bank was present the inaugural session as the Special Guest. I expected that participants will improve their leadership quality through the training program. 5
CRC Seminar on IAS-I: Presentation of Financial Statements CRC-ICAB organized a CPD Seminar on IAS-Presentation of Financial Statements on 26 at CRC Auditorium, Chittagong. Alihussain Akberali FCA, Chairman, BSRM Steels Ltd. graced the Seminar as Chief Guest and Md. Saifur Rahman Mazumder FCMA, FCA, Past Chairman, CRC-ICAB presented the Keynote paper. Large number of ICAB Members in Chittagong attended the seminar and Haradan Dey FCA, Partner, MRH Dey & Co, Chartered Accountants conducted the seminar as Session Chairman. World Bank Workshop on Policy Note Dissemination The World Bank (supported by the ICAB) organized a Policy Note Dissemination Workshop on Promoting Public Private Partnership for Improved Public Sector Auditing in Bangladesh on 29 at BICC, Dhaka. Suriya Zannath Khan FCA, Management Sr. Financial Specialist, World Bank presented the Policy Note. Masud Ahmed, Hon ble C&AG of Bangladesh graced the function as the Chief Guest while I was the Special Guest. In my address, I mentioned that ICAB is working as a Consulting body in this WB financed project aiming to strengthen strategic relationship between ICAB and OCAG and both organization already signed a strategic MoU on 07 November 2012. The project launched with many more challenges addressing the accounting and auditing practices for improving Audit Assurance quality in Public and Private Sectors. To overcome the challenges, Public Private Partnership is the way forward to ensure a greater impact in the Audit and Assurance Quality. ICAB is equally keen to share knowledge & experience with OCAG as an ongoing basis. Johannes Zutt, the WB Country Director in Bangladesh and Fily Sissoko, Manager, South Asia Regional Financial Management, World Bank also spoke on the occasion. Member Council & Past President-ICAB Anwaruddin Chowdhury FCA and Deputy C&AG Dr. Shyamal Kanti Chowdhury placed their comments on the Keynote paper. Representatives from different stake holders including practicing members of ICAB joined this Workshop. Other important activities of this month Farewell in Honour of Outgoing ICAB Secretary ICAB gave a farewell to Dr. Mahfuzul Hoque, Secretary (In-Charge) in a simple ceremony on 2 at ICAB Auditorium, Dhaka. Office bearers, some Council Members and ICAB Employees joined the program and recognised the contribution during his tenure. Dr Mahfuz in his speech appreciated ICAB executives for extending full co-operation during his tenure of service. He expressed his willingness to co-operate with ICAB if his assistance is required at any time. AKM Rahmatullah FCA joins ICAB as new Secretary AKM Rahmatullah FCA joined as the Secretary of the Institute of Chartered Accountants of Bangladesh on 30 April 2014. Before his joining, he served as the General Manager (Accounts & Budget) in Bangladesh Bank. He is a Financial Management Specialist and he has long 28 years professional experience. I hope that new Secretary will successfully discharge his duties and will be able to handle the future challenges of the Institute and the profession. Meeting with BCACP Ad-hoc Committee Members of Bangladesh Chartered Accountancy Chhatra Parishad (BCACP) Ad-hoc Committee met with me at ICAB Office, CA Bhaban, Dhaka. Various academic issues including ICAB Curriculum, library facilities, CA hostel accommodation matters were discussed. I assured all sorts of cooperation to them to ensure proper educational environment and other related facilities for students to increase passing rate in future and advised them to concentrate more time to study for their success. Meeting with ICMAB Council Members A meeting between a 6-Member ICMAB Council Team headed by its President Mohammed Salim FCMA and ICAB Council Members headed by myself was held at ICAB Council Hall, CA Bhaban, Dhaka on 17. Meeting discussed various professional matters and bi-lateral issues. Among others Vice Presidents Kamrul Abedin FCA & Nasim Anwar FCA, Member Council & Past Presidents Abbas Uddin Khan FCA & Md. Syful Islam FCA, Member Council A F Nesaruddin FCA and Secretary (Acting)-ICAB Md. Saiful Islam ACA attended the meeting on behalf of ICAB. Meeting with WTO Team A meeting between 2-Member WTO Team and ICAB Management headed by myself was held on 21. During meeting, I briefed them about quality assurance, IDC activities and up gradation of ICAB Curriculum in line with ICAEW. ICAB Vice Presidents Kamrul Abedin FCA and Nasim Anwar FCA, Secretary (Acting)-ICAB Md. Saiful Islam ACA were also present in the meeting. Forkan Uddin appeared Live Interview at Ekushey TV Forkan Uddin FCA, Partner, Masih Muhith Haque & Co., Chartered Accountants participated in a live interview with Ekushey TV Business Program on Capital Market on 28 April 2014. Forkan in his interview focused on present trend of Capital Market, demutualization of two bourses, scope of investment, bank rate, upcoming National Budget and its impact on Capital Markets etc. I hope that more ICAB members will participate in the print and electronic media in future on 6
different economic issues and will increase the image of the Institute as well as the profession. Md. Shafiqul Islam Khan FCA and Kazi Mezbah-ul Alam FCA pass away I was deeply shocked and saddened to hear the news of the death of Md. Shafiqul Islam Khan FCA (Enrol-173), Pro-Vice Chancellor, Darul Ihsan University. Khan expired on 05 April 2014 due to heart attack (Inna Lillahe...Rajeun). I, on behalf of the profession, express profound grief on his demise and pay heartfelt tribute to the departed soul. In my condolence message as President ICAB, I expressed my deepest sympathy to the family members and prayed to Almighty Allah(SWT) for the eternal peace of the departed soul. I was also deeply saddened to learn about the demise of Kazi Mezbah-ul Alam FCA (Enrl-40), Managing Partner of K M Alam & Co., Chartered Accountants. Alam died on 15 April 2014 due to old age complications (Inna Lillahe..Rajeun). On behalf of Council-ICAB and its Members, I expressed my deepest sorrow at the demise of Kazi Mezbah-ul Alam and prayed to Allah (SWT) for the salvation of the departed soul and give the strength & courage to bereaved family members to bear this irreparable loss. A Milad & Doa Mahfil for deceased ICAB Members ICAB organized a Milad & Doa Mahfil at ICAB Auditorium, Dhaka on 8 evening. Before offered doa, ICAB Councillors, relatives, colleagues and friends of late ICAB Members recalled the contribution of late ICAB Members for the profession and the nation. They prayed to Almighty Allah (SWT) for eternal peace of the departed souls who died over the past years. Meetings of Council and Standing & Non-standing Committees The following meetings of the Council, Standing and Non-standing Committees and Sub-committees of ICAB were held during the month of : - 4 th Meeting for 2014 of Council-ICAB was held on 6 March 2014 at 11.30 am - 5 th Meeting for 2014 of Council-ICAB was held on 27 March 2014 at 5.30 pm - Meeting of 11-Member Council Committee on FRA Issues was held on 19 March 2014 at 4.00 pm - Meeting of 8-Member Interview Board was held on 20 March 2014 at 3.00 pm - Meeting of 8-Member Interview Board was held on 31 March 2014 at 5.00 pm Standing Committees: - Examination Committee of Council ICAB was held on 6 March 2014 at 10.00 am - 7-Member Sub-Committee of Articled Students Committee (ASC) of Council-ICAB was held on 13 March 2014 at 5.30 pm - 1 st Meeting for 2014 of Investigation and Disciplinary Committee (IDC) of Council ICAB was held on 16 March 2014 at 6.00 pm - 1 st Meeting for 2014 of Articled Students Committee (ASC) of Council ICAB was held on 18 March 2014 at 6.00 pm - 2 nd Meeting for 2014 of Executive Committee (EC) of Council-ICAB was held on 24 March 2014 at 5.30 pm Non-Standing Committees: - 1 st Meeting of Review Committee for Published Accounts & Reports (RCPAR) of Council-ICAB was held on 3 March 2014 at 5.00 pm - 5-Member Sub-Committee for Land Issue was held on 4 March 2014 at 6.30 pm - 6-Member Sub Committee of Professional Development Committee (PDC) of Council-ICAB was held on 5 March 2014 at 6.00 pm - 1 st Meeting for 2014 of Information and Communication Technology Committee (ICTC) of Council-ICAB was held on 12 March 2014 at 5.00 pm - 6-Member Sub-Committee of Continuing Professional Development Committee (CPDC) of Council-ICAB was held on 12 March 2014 at 6.00 pm - Meeting of Sub-Committee of Committee for Amendment of CA Order & Bye-Laws was held on 23 March 2014 at 5.00 pm - Meeting of Sub-Committee of Professional Development Committee of Council-ICAB on re-structuring ICAB s Fees Schedule was held on 24 March 2014 at 6.30 pm - Meeting of Sub-Committee of Committee for Amendment of CA Order & Bye-Laws was held on 24 March 2014 at 5.00 pm Thanks and best regards! Showkat Hossain FCA President May 28, 2014 7
Workshop on "The Art of Leadership" held The Institute of Chartered Accountants of Bangladesh (ICAB) organized a two day long workshop on The Art of Leadership from 26 to 27th at its training room. A total number of 22 participants participated in the workshop. ICAB President Showkat Hossain FCA inaugurated the workshop. Ms. Suraiya Zannath, Sr. Financial Management Specialist, the World Bank and Mozammel Haque, representative, the World bank were present as Special Guests in the inauguration session. ICAB Council Member and Past Presidents Mr. Muhammed Farhad Hussain FCA, Mr. Md. Humayun Kabir FCA, Vice President Dewan Nurul Islam FCA, Council Member. Gopal Chandra Ghosh FCA, Humaira Sharmeen from Prothom Alo Jobs, Md. Moinul Islam from ACI and Md. Masud Khan from Surma Lafarge Cement were the resource persons of the workshop. Important areas of the workshop were Communication Skills, Public Speaking Skills, Leadership Theory & Practices, Interviewing Skills, Posture & Gesture, Expectations from a Finance Manager, Management and Leadership in 21st Century, Career Progression. It was 3rd time of such workshop in this year. Fourth Batch of the workshop will be held in May this year. Proposals on Tax and VAT From Last Page costs of living have gone up as a result of inflation and general price increase / hike considering the Taka value depreciation compared to Foreign Currency. Exempted limit(s) should be doubled. Value Added Tax (VAT) policies On Price Declaration, ICAB proposed that the requirement of price declaration should be done away with. Instead VAT should be levied on the basis of the actual sales declared in the monthly return. About Absence of clear guideline about VAT rate for import of service, ICAB proposed Import of service should attract VAT at the standard rate of 15%. Regarding Inclusion of a provision mentioning the right of transferring initial burden of VAT to next stage, ICAB proposed that a Section or sub-section should be included mentioning the right of passing the burden of VAT to next stage through adding VAT with the sales price. About Input VAT adjustment from Mobile bills, ICAB s opinion is that Insertion of post paid mobile bills (with the required information of Mushk-11) along with telephone, fax etc. in Rule 19 sub rule 1(K). Input tax paid against mobile phone services (post paid mobiles registered with any business entity instead of any individual) up to a certain percentage (justifying it s mobility and expected use for official purpose) may be allowed for input tax credit like other utility services. On Time Limit for claiming input tax credit of VAT policies, ICAB proposed that the Time limit for input tax credit should be extended to minimum 6 months from the date of Bill of Entry (B/E) or Invoice subject to entering the goods in manufacturing unit. About Input VAT Credit on rental of floor place, Rental of floor place fulfills the definition of input as service. VAT paid by tenant of rented floor place should be explicitly eligible for input VAT credit is proposed. On matter of VAT on Spare Parts, ICAB proposed to withdraw the existing provision of payment of VAT on spare parts at import stage by industrial importers subject to necessary documentation and declaration to the local VAT Office. Regarding Elimination of provision for fixing tariff value, VAT should be levied on the basis of the actual sales declared in the monthly return is proposed. About Input tax credit (VAT rebate), there should not be restriction imposed for allowing VAT credit if such VAT credit is genuine and supported by Bill of Entry or Mushak 11 against purchase of goods or service, ICAB proposed. Credit of input VAT on certain services: 100% input VAT should be allowed as credit, the Institute proposed. About Deduction of AIT from Industrial Units, it proposed that AIT is being collected from Industrial Importers which is adjustable with payable Income Tax annually. Industrial importers should be waived from such deduction. Specially Steels Sectors that is capital intensive low margin business sector. For Billets (H.S. Code Heading 72.07), Sponge Iron and Scraps (H.S. Code Heading 72.03 & 72.04) the amount of AIT is high and the deducted AIT is engaging huge working capital making business costlier. Since the importers of Steel Sector invest huge amounts for operation there is no scope for them to avoid due Income Tax. AIT deduction at import stage can be stopped for the industrial sector specially for Steels Sector. Regarding Issue VAT Challan (Factory to branch), with Ref. Section 5(1&4) of VAT & SD Act 2012 (i) Only one registration shall be required for central/main branch office (ii) For one economic transaction goods or services transfer from one branch to another branch will not be treated as supply and no output tax and input tax will be considered, ICAB proposed. Standard rate of VAT: Instead of 15%, ICAB proposed 10% is proposed. About Extension of time-limit for depositing Withholding VAT, ICAB s proposal is that considering the practicality withholding VAT should be allowed to be deposited within 3 (three) weeks as is the case with Income Tax Withhold deposit. For Simplified Guideline for Trader in relation to Advance Trade VAT (ATV), it proposed to fix trade VAT @ 2% if value addition is less than or equal to 26.67% and VAT @ 15% on the value addition if value addition exceeds 26.67%. VAT paid by Service Receiver in case of Service received from Outside of Country u/s 3(3)(d) of the VAT (#22) 1991 : As a result, such input VAT paid on imported services will increase cost of goods in case of having no refund through Duty Exemption & Drawback Office (DEDO is proposed. 8
CRC Holds CPD Seminar on 'Salient Features of Bank Company Act, Recent Amendments & Issues' The Chittagong Regional Committee (CRC) of ICAB organized a CPD Seminar on 'Salient Features of Bank Company Act, Recent Amendments & Issues' on Saturday, 12 at the Conference Hall of ICAB-CRC office, Chittagong. Mohammed Roshangir, Deputy Managing Director, Bank Asia graced the occasion as Chief Guest, Md. Salim Uddin MBA, FCMA, FCA, Professor, Department of Accounting & Information Systems, University of Chittagong was Session Chairman. Imtiaz Alam ACA Proprietor, Imtiaz Alam & Co., Chartered Accountants presented the valuable Key-note paper in the seminar. The Key-note speaker described the details in his paper regarding Bank Company Act, recent amendments & other related issues. A short note is given hereunder. Bangladesh Bank is empowered to act as the watchdog of the country's banking system, and all scheduled banks are accountable to Bangladesh Bank, which has extensive powers to ensure soundness of the banking system. No bank can commence banking business in Bangladesh and no existing bank can open a new branch in or outside the country or shift any branch from one place to another without obtaining a license/permission from the Bangladesh Bank. The powers and functions of Bangladesh Bank are governed by various laws and acts including the Banker's Books Evidence Act 1891, Insolvency Act 1920, Banking Companies Ordinance 1962, Bangladesh Bank Order 1972, Foreign Exchange (Regulation) Act 1986, Money Loan Court Act 1990, Banking Companies Act 1991, Financial Institutions Act 1993 and Rules 1994, Companies Act 1994 and Bankruptcy Act 1997. Laws are not holy scripts. Those are always subject to amendments with a view to meeting the demand of time and situation. The Bank Company Act (BCA) is no exception. Since its adoption in 1991, the law has been amended thrice, in 1993, 1995 and 2003. The last military-backed caretaker government also proposed some changes in relation to the number of directors and the extent of individual family holdings in banking institutions. But nothing concrete was done to this effect during the tenure of that government. However, the country's National Parliament on July 14,2013 passed a bill amending the BCA in a wider perspective. The present government after coming to power felt the necessity of amending the act. But in the face of overt and covert opposition by the vested quarters, it also started dragging its feet on the issue. However, the finance ministry had to take firm and swift moves to amend this piece of legislation when the International Monetary Fund (IMF) had made it one of the conditions tagged to the availability of its $1.0 billion worth of Extended Credit Facility (ECF). The latest amendments to the BCA may not have met fully what the IMF wanted but those would surely help eliminate some major problems in the banking sector and strengthen the hands of the regulatory body (i.e. Bangladesh Bank), the Central Bank of our country. Such Amendment will improve Good Governance in the Banking Sector, Control the participation of the banks in the Capital Market and protect the interest of the Small Investors and all depositors. Forkan Uddin appeared at live Ekushey Business Program on Capital Market Mohammed Forkan Uddin FCA, capital market specialist and partner, Masih Muhith Haque & Co, Chartered Accountants appeared at Ekushey Business program on 28 over a live interview focusing on capital market scenario, its future movement and the upcoming national budget. About present trend of capital market, he said that due to the political stability, surplus banks liquidity, single digit interest rate on FDR, demutualization of the two bourses, the capital markets are now acting in positive manner towards development. He said that due to demutualization, there is no possibility of share market manipulation, so the markets would become international standard and the foreign investment would come up in the market in future. About upcoming national budget, he replied questions and said that withdrawn of AIT and exemption tax on dividend for listed companies will help to grow the capital markets. 9
ICAB President Attends Session on ICAEW s Curriculum Jonathon Worrell conducted a discussion session to give an overview on ICAEW s old and newly curriculum, structure, contents and examinations scheduled on 9. Mr. Worrell gave a brief presentation on the matter related to those areas. He also participated in an open discussion regarding upcoming examinations and ICAEW classes to be organized by ICAB in July and November this year. Among others, ICAB President Showkat Hossain FCA, Council Member and Past Presidents Muhmmed Farhad Hussain FCA and Md. Humayun Kabir FCA, Secretary (Acting) Md. Saiful Islam ACA and Director (Technical) Mahbub Ahmed Siddique FCA were present in the discussion held at Mini Conference Room, CA Bhaban. Justin West and Jonathon Worrell demonstrate ICAEW Students Seminar at ICAB ICAEW Head of new business development Justin West and Senior Business Development Manager Jonathon Worrell jointly demonstrated ICAEW Students Seminar at ICAB training room, Dhaka on 18. They presented a paper in the seminar covering ICAEW s syllabus and overview of ICAEW advanced stage examination under old and new curriculum. The presentation also covered ICAB advance stage examination results in Bangladesh, common errors in examination paper, etc. Among others, ICAB president Showkat Hossain FCA, Council Member and Past President Syful Islam FCA, Director Mahbub Ahmed Siddique FCA and Snehasish Barua FCA were present in the seminar. Participants in the seminar requested to hold ICAEW classes by ICAB and their willingness to attend the upcoming examinations. Meeting with ICMAB Delegates ICAB President emphasized mutual relation and benefits between the two Institutes for capacity building in the area of education, examinations and overall quality of the profession. Mr. Syful Islam advised the students to give more time and attention in study and to work hard to pass the ICAEW examinations as it is a matter for the sake of reputation of both the Institute and members as well. A delegation of the Institute of Cost Management & Accounts of Bangladesh (ICMAB) visited ICAB on 17. ICAB team headed by Showkat Hossain FCA, President-ICAB held a meeting with the delegates from ICMAB on the same day to discuss about various professional matters and bi-literate issues. Other members of the ICAB team are Vice Presidents Kamrul Abedin FCA and Nasim Anwar FCA, Council Members Abbas Uddin Khan FCA, Md. Syful Islam FCA & A F Nesaruddin FCA, Secretary (Acting) Md. Saiful Islam ACA were present on the occasion. 10
UPGP & LGSP-II organize training for reviewing CA Firms for Union Parishad Audit U nion Parishad Governance Project (UPGP) and Local Governance Support Project (LGSP) of the Local Government Division under the Ministry of Local Government Rural Development & Cooperative, GoB jointly organised two-day training on Financial Audits, Performance Assessment, Fiduciary & Safeguards Compliance for the auditing and reviewing CA Firms assigned to auditing and reviewing of Union Parishads financial statements for 2012-2013, 2013-2014 and 2014-2015 under LGSP - II at BIAM auditorium, Dhaka. The trainings were held in several phases throughout the month of. ICAB president Showkat Hossain FCA was present in both inauguration and closing A partial view of the participants (Auditors) attended the training programme organized by UPGP & LGSP-II. session of each phase of the training programe on 1, 3, 6, 8, 10, 20 and 29. He gave a brief speech on each session of the training. The ICAB president handed over certificates to the participants after each phase of the training. LGSP Training programme on "Financial audits, performance assessment, fiduciary & safeguards compliance covered different areas of Union Parishad audit and budgetary functions like Performance Assessment of Union Parishads, Financial Audit, Audit methodology and field level audit, documentation & reporting, Overview of fiduciary & safeguards compliance assessment and open discussion session. Resource persons of the training are Prof. Mobasser ICAB President Showkat Hossain FCA delivering welcome speech at the Orientation Program for Financial Auditors and Performance Assessors under LGSP-II at BIAM Foundation, Dhaka on 01. Monem, Department of Public Administration, University of Dhaka and Consultant, UPGP, Md. Aminul Islam, Consultant, LGSP, Ajit Kumar Paul FCA, Consultant, LGSP. ICAB President Showkat Hossain FCA delivered welcome speech at the Orientation Program for Financial Auditors and Performance Assessors under LGSP-II at BIAM Foundation, Dhaka on 1. It is mentioned that the designated Firms already have completed audit on financial statements of Union Parishads for 2010-2011 and 2011-2012. The Local Government Division urged the assigned audit firms to complete the audit of the Union Parishads across the country within the stipulated time effectively. Farewell Program in Honour of Outgoing Secretary The Institute of Chartered Accountants of Bangladesh (ICAB) arranged a program at its Auditorium on 02 in a bid to give a Farewell to its Outgoing Secretary (In-charge) Prof. Dr. Mahfuzul Hoque. ICAB President Showkat Hossain FCA, Vice President Kamrul Abedin FCA, Past President and Council Members Abbas Uddin Khan FCA, Nasir Uddin Ahmed FCA, Md. Syful Islam FCA, Immediate Past President Md Abdus Salam FCA and Employees of the Institute were present on the occasion. Mr. Mahfuz joined the Institute on 1st April 2011 as Director (Learning and Professional Development). ICAB President recalled the contribution of Mr. Mahfuz and said, the contribution of Mr. Hoque will be remembered and his future attachment with the institute will be appreciable. The other Council Member and Past Presidents also spoke on the occasion in appreciation of his hard work and endeavour in ICAB as both Director LPD and Secretary In-charge. 11
Resource Persons: ICAB Academic Campus (Session: March-May 2014) Name of Resource Persons (Sections- F & G of PS-KL-9th Batch) Mr Md Kishlur Rahman ACA Mr Md Al-Amin Siddiki ACA Mr Obaidur Rahman FCA Mr Md Humayun Kabir ACA Mr Md Abdur Razzaque ACA Mr Md Mahbubul Haque ACA Mr Mahmudur Rahman ACA Mr Sujan Kumar Saha ACA Mr Zafar Ullah Khan FCA Mr Shibly Ahmed FCA Mr Muhammad Shariful Islam Shiplu FCA Prof. Dr ASM Hossain Tayiab FCA Mr Md Abdullah-Al-Amin ACA Mr Mohammad Shibbir Hossain ACA Mr Mohammad Aminul Hoque ACA Mr Mostak Ahmmed ACA Mr Sajib Sarkar ACA Mr Chitta Ranjan Halder FCA Ms Mashruna A. Chowdhury ACA Mr Mohammad Monowar Hossain ACA Mr K S Omar Faruk ACA Mr Khairul Basher FCA Mr Abdullah-Al-Mamun FCA Mr Md Jasim Uddin ACA Mr Mohyminul Islam Miltan Bepari ACA Mr Md Anisur Rahman Mr Abdulla-Al-Mahmud FCA Name of Resource Persons (Sections- A-C of PS-AL -8th Batch) Mr Mohammed Tofazzul Hussain FCA Mr Abdullah-Al-Mamun ACA Mr Anwaruddin Chowdhury FCA (GT) Mr Obaidur Rahman FCA Mr Mohammad Redwanur Rahman FCA Mr Md Abdur Rouf FCA Mr Dewan Nurul Islam FCA Mr Masud Khan FCA-India Mr Md Kahir Mahmood FCA Mr Shaheduzzaman Choudhury FCA Mr Md Shafiqul Alam FCA Mr Mohammad Imtiaz Khan ACA Mr Ranjan Kumar Bhowmik FCMA Mr Abdul Khalek FCA (VAT-Portion) Mr Md Amirul Islam FCA Mr Abdulla-Al-Mahmud FCA Mr Md Parvej Ahmed ACA Mr Md Mahsudur Rahman FCA Mr Mustaq Ahammed FCA Mr Gopal Chandra Ghosh FCA Mr Sabbir Ahmed FCA Mr AH Mostafa Kamal Khan Mr Md Shafiqul Alam FCA Mr Sayeed Ahmed FCA Mr Masud Khan FCA-India Mr Mohammed Forkan Uddin FCA Mr Mohammad Abdul Ohab Miah FCA (VAT Portion) Mr Md Akbar Hossain FCA Mr Md Din Islam Miah FCA Mr Mohammed Sabir Ahmed FCA Dr Jakerul Abedin Mr Shamim -Al-Mamun ACA Mr Mohammad Abdul Matin Mr Md Fokrul Islam FCA Mr MAKH Hasif Sowdagar FCA Mr Md Saiful Islam ACA Mr Md Mahamud Hosain FCA Mr Muraheb Malik Chowdhury ACA Mr Shaheduzzaman Choudhury FCA Mr Shahriar Istiaq Halim ACA Mr Bibhuti Bhushan Biswas ACA Mr Anup Kumar Mukherjee ACA Mr Zakir Hossain FCA Mr Mahmudul Hasan Khusru FCA Mr Md Reajul Islam FCA (VAT Portion) Mr Imtiaz Lutful Baset FCA Mr Md Selim Reza FCA Prof. Dr ASM Hossain Tayiab FCA Mr Palash Mollick Name of Resource Persons (Sections- D of PS-AS -7th Batch) Mr Gopal Chandra Ghosh FCA Mr Mohammad Mehdi Hasan FCA Mr Mohammed Forkan Uddin FCA Mr Anwaruddin Chowdhury FCA(GT) Mr Sabbir Ahmed FCA Mr Snehasish Barua FCA Mr Syed Md Enamul Kabir FCA Mr Md Kishlur Rahman ACA Mr Masud Khan FCA-India (GT) Mr Sayeed Ahmed FCA Mr Mahbub Ahmed Siddique FCA Mr Dewan Nurul Islam FCA FCA Mr Gopal Chandra Ghosh FCA Visiting Faculties (for Ongoing Session) Name of Visiting Faculties Mr Dewan Nurul Islam FCA Mr. ABM Azizuddin FCA Mr Anwaruddin Chowdhury FCA Mr Md Syful Islam FCA, FCMA Mr Md Abdus Salam FCA Mr Gopal Chandra Ghosh FCA,FCMA Mr Masud Khan FCA-India Mr Ranjan Kumar Bhowmik FCMA Mr Abdul Khalek FCA Mr Md Amirul Islam FCA Mr Sabbir Ahmed FCA (E-770) Mr Mohammad Mehdi Hasan FCA Mr A H Mostafa Kamal Khan Dr. Jakerul Abedin ICAB Academic Campus News The Pre-Examination Evening Coaching Classes of Professional Stage-Knowledge Level (9 th Batch, Sections: VI &VII, No. of Students 173), Application Level (8 th Batch, Sections: I -III, # 256 Students) and Advanced Stage (7 th Batch, Section: I, # 52 Students) have started from 01 March (PS-KL) & 12 March 2014 (PS-AL &AS) for Examination Session: May-June 2014 at Campus.The session will be continued up to 29 May 2014.There are 481 students for the Class Session of March-May 2014. As a result, the cumulative number of participated students of ICAB new curriculum has been totalled to 6,641 till April 28, 2014. By this time, a programme on Case Study for Advanced Announcement (Classes of Next Session) The New Session (June-August 2014) for the Students of Professional Stage- Knowledge Level (10th Batch) will start from Sunday, 01 June 2014 at ICAB Academic Campus. A Notice has already been issued in this matter, and all concerned students are advised to enroll the classes by 05 May 2014 at ICAB Academic Campus. 12
Campus News Cont ed level students has started from 14 March 2014 at ICAB Academic Campus. There are 52 students in this session. The class will be closed on 17 May 2014. The Conversion Courses on Accounting of Professional Stage Knowledge Level (9 th Batch) & Application (5 th Batch) levels which commenced on 04, continued upto 02 May 2014 at Campus. There are 49 students for the Class Session of April-May 2014. The total number of have Conversion Courses completed students reached at 1,274 ( PS-KL,1138 + 136, PS-AL) up to 31 March 2014 at Campus. On the other hand, a- new session of classes for the Students of Professional Stage-Knowledge Level (10 th Batch) will begin from Sunday, 01 June 2014 at ICAB Academic Campus. A Notice has already been issued in this regard and all concerned students are advised to enroll for the classes by 05 May 2014 at ICAB Academic Campus. The Programme on the mentioned Levels of classes have been organized by the Additional Director at ICAB Academic Campus under the supervision of the Vice President (Education & Training)-ICAB, Mr. Dewan Nurul Islam FCA with the consent and guidance of the Chairman of Board of Studies-ICAB, Mr.ABM Azizuddin FCA & President- ICAB, Mr Showkat Hossian FCA. Obituary Kazi Mezbah-ul Alam FCA (Enrl-40) Managing Partner, K M Alam & Co. Chartered Accountants, died on 15 April 2014 due to old age complications. (Innah Lillahe... Rejeun). He was a man of great virtues and high self esteem. On behalf of the Council and the members of the Institute, the President of ICAB expressed deep sorrow at the demise of Mr. Kazi Mezbah-ul Alam and prayed to almighty Allah, the most Kazi Mezbah-ul Alam FCA merciful for salvation of his departed soul and give the bereaved family the strength and courage to bear the irreparable loss. Md. Shafiqul Islam Khan FCA (Enrl-173) Pro-Vice Chancellor, Darul Ihsan University died due to Heart Attack on 05. (Innah Lillahe... Rejeun). On behalf of the Council and the members of the Institute, the President of ICAB expressed deep sorrow at the demise of Mr. Shafiqul and prayed to almighty Allah, the most merciful for salvation of his Md. Shafiqul Islam Khan FCA departed soul and give the bereaved family the strength and courage to bear the irreparable loss. A Milad and Doa Mahfil for Late ICAB Members The Institute of Chartered Accountants of Bangladesh (ICAB) arranged a 'Milad and Doa Mahfil for the salvation of departed souls of late Members of the Institute at ICAB Auditorium on 8 April 2014. Before starting Milad and doa Mahfil, the relatives, colleagues, friends and well wishers of the late members recalled their contribution to the nation and the Institute as well. They prayed to the almighty Allah for the eternal peace of the departed souls of their beloved Fellow Members, who died over the past years. ICAB President Showkat Hossain FCA, Members of the Institute and employees attended the Milad & doa Mahfil, conducted in solemnity and due honour, specially for the members who expired recently. 13
David Brookfield Attends ICAB Examinations Sub-committee Meeting ICAB Examinations Sub-committee held a meeting with David Brookfield, Senior Consultant and Syllabus Expert, ICAEW at Hotel Sonargaon, Dhaka on 22. ICAB President Showkat Hossain FCA, Vice Presidents Kamrul Abedin FCA, Dewan Nurul Islam FCA, Council Member & Past Presidents ASM Nayeem FCA, Muhammed Farhad Hussain FCA, Md. Humayun Kabir FCA, Md. Syful Islam FCA, Director (Technical) Mahbub Ahmed Siddique FCA and Controller of Examinations Md. Afzal Hossain were attended the meeting. In the meeting they discussed examination related issues focussing on syllabus coverage, assessments BCACP Ad-hoc Committee Meet ICAB President ideas, communications between examineers and tutors, learning materials and pass rates of students attempting to be ICAEW qualified. They also discussed other areas of mutual interest between the ICAB and ICAEW. WTO Team visits ICAB A team of WTO visited ICAB on 21 to have a glimpse on overall development of the Institute and to discuss various professional issues those ICAB adopted and implemented since ROSC Report in 2003. The discussion mainly focused on activities of ICAB-Quality and Assurance Department, Investigation and Disciplinary proceedings through professional conduct and the up-gradation of education system in line with ICAEW. The Members of the Ad-hoc Committee, Bangladesh Chartered Accountancy Chhatra Parishad (BCACP) of ICAB paid a courtesy call on ICAB President Showkat Hossain FCA at latter s office on 15. They held a meeting with the ICAB President and discussed on various academic issues like ICAB curriculum, library facilities, examinations and the accommodation problems in CA Hostel. ICAB President assured them of his best cooperation to ensure proper educational environment and other related facilities for the sake of the development of the profession. He advised the students to be more attentive in their studies. He further said there is no alternative to study to pass the examinations and hard work is essential for qualifying the exams. The Members of the BCACP Committee handed over a bouquet to the ICAB President on the occasion. ICAB President Showkat Hossain FCA, Vice Presidents Kamrul Abedin FCA, Nasim Anwar FCA and ICAB Secretary (Acting) Md. Saiful Islam ACA were present in the meeting. 14
World Bank Delegates Visit ICAB Adiscussion meeting was held on 28 between World Bank and ICAB Team on existing and upcoming World Bank Funded Projects. The meeting discussed about ongoing projects and different avenues and scopes that the World Bank and ICAB can work with. The Members of the World Bank team were Ms. Suraiya Zannath Khan FCA, Sr. Financial Management Specialist, the World Bank and Fily Sissoko, Manager, South Asia Regional Financial Management, the World Bank. ICAB Team led by ICAB President Showkat Hossain FCA included Vice President Dewan Nurul Islam FCA, Council Member & Past Presidents Abbas Uddin Khan FCA, Md. Humayun Kabir FCA and Md Abdus Salam FCA, Council Members Masih Malik Chowdhury FCA, A F Nesaruddin FCA, Md. Shahadat Hossain FCA and Gopal Chandra Ghosh FCA, Director (Technical) Mahbub Ahmed Siddique FCA, Senior Deputy Director (PC) Md. Saiful Islam ACA, Deputy Director (LPD) Yesmin Hosna ACA. Jonathon Worrell attends an Urgent Council Meeting ICAB called an emergency council meeting at Westin Hotel on 09. ICAEW Senior Business Development Manager Jonathon Worrell joined the council meeting to discuss academic strategy and papers covering ICAEW s syllabus and renewal of MoU between the ICAB and ICAEW. Members of the Council stressed on mutual benefits and capacity building in the area of education, examinations and overall quality of the profession. Most of the Council Members ICAB attended the Meeting. Meeting with DRC Delegates A team of Dhaka Regional Committee, ICAB led by President DRC Md. Fokrul Islam FCA met ICAB President Showkat Hossain FCA at his office on 03. The other members of the team are Md. Eftekhar Ali FCA, Md. Selim Reza FCS, FCA, Mizanur Rahman FCA, Mohammed Khairul Alam FCA. They held the meeting to discuss professional issues and to apprise the matters related to the affairs of the Committee to the President. At the meeting ICAB President emphasized for more pro-active role in building image of the Institute as well as to foster the development of the profession. 15
ICAB Submits Proposals on Tax and VAT Policies to NBR Regarding Budget 2014-15 Regarding the upcoming National Budget 2014-2015, ICAB submitted its proposals on VAT & Tax policies to the National Board of Revenue (NBR) recently. The proposals were finalized by Taxation & Corporate Laws Committee of ICAB and was highly appreciated and overweighed by the NBR. The authority of NBR said that with due consideration and review, it will incorporate the proposals where it may deem fit in the upcoming national budget. ICAB s proposals were made with a view to increase of government revenue, avoid contradictory provisions & loopholes of existing laws, encourage investment as well as discourage siphoned of capital to abroad, reducing the Tax rate on organizations like SMEs that create more job opportunities, controlling Tax return submission by NGOs and verification of submitted financial reports, etc. The proposals emphasized mainly on three areas; increase of revenue, remove procedural flaws and ensuring social justice. ICAB s proposals cover 58 areas on Tax policies and 37 areas on VAT policies of the government. Some of them are as follows: Tax Policies On Tax amnesty in investment in real estate on payment of tax, ICAB proposed tax amnesty in investment in real estate on payment of reduced tax: may be truncated based on Square Metre or Flat rate in between 5%-7.5% is proposed. On Special tax treatment in respect of investment in residential building and apartment section 19BBBBB, ICAB proposed that source of any sum invested by any person, in the construction or purchase of any residential, commercial building or apartment, shall be deemed to have been explained if the assessee pays, before the assessment for the relevant assessment year in which the investment is completed. On Financial Statement Certified by Chartered Accountants, ICAB proposed without prejudice to the preceding sub-sections, every public or private company as defined in the Companies Act, 1913 (VII of 1913) or Company Act, 1994 shall, with the return of income required to be filed under this Ordinance for any income year, furnish a copy of the Financial Statements in respect of that income year certified by a Chartered Accountant with the authentication mark from the Institute of Chartered Accountants of Bangladesh. Regarding Deduction from the payment of certain services, ICAB proposed that after the existing provision the following Para can be inserted in the existing provision: :Provided that in case of the commission/ margin is not disclosed in the bill, tax should be deducted on a notional profit @ 15% on the gross bill excluding VAT. On the matter of Submission of tax return by the NGO, ICAB proposed that in the country there are a number of NGOs who do not submit tax returns. To compel them for submission of tax return, NGO Affairs Bureau and other lending organization (Like PKSF) may ask for producing current tax clearance certificate before renewing enlistment/loan agreement/ making disbursement of loan. In this respect, NBR may link up the matter with relevant Ministries. About Submit report to the Board by a Chartered Accountants, the Chartered accountant, after examination of the accounts of that assessee, shall submit a report in writing to the Board along with findings within a time as may be specified by the Board, was proposed provided that the report of the Chartered Accountant should have authentication mark from the Institute of Chartered Accountants of Bangladesh. Capital gain tax: The rate of capital gain tax may be raised to at least 20% is proposed. On Discourage Concealment, a harsh law for non-disclosure of assets in IT10B along with the tax return may be introduced imposing 50% flat rate tax on movable assets (cash & financial instruments) and 30% on immovable assets is proposed. About Individual Tax Rates, ICAB proposed Individual tax rate as follows: a) First Taka 300,000 @ Nil, b) Next Taka 400,000 @ 10%,c) Next Taka 400,000 @ 15%, d) Next Taka 300,000 @ 20%, e) Balance Taka @ 25%. Tax exemption limits for female tax payers and tax payers aged 65 years or more is Taka 350,000 and tax payers who are mentally or physically retarded is Taka 400,000. On Corporate Tax Rates, Corporate Assessee(s) (Other than Publicly Traded Company-PTC, Bank, Insurance & Financial or Money investing /lending Institutions) 35% and Bank, Insurance & Financial or Money investing / lending Institution Leasing or House Finance Companies tax rate would be 37.5% and Publicly Traded Company-PTC (i.e. listed) Other than Bank, Insurance & Financial or Money investing / Lending Institution, Leasing or House Finance companies or Mobile Phone Operator Company or Cigarette Manufacturing company would be 25%, ICAB proposed. For Tax holiday, ICAB proposed that Some incentive in the form of tax holiday may be introduced for tourist industries to encourage the growth of this sector. (a) Exemption limit of House rent Allowance for Salary Income. Published by the Editorial Board of the Council, The Institute of Chartered Accountants of Bangladesh (ICAB) 100 Kazi Nazrul Islam Avenue, Dhaka 1215; Tel. 9117521, 9112672, 9115340, 9137847 Fax: 880-02-8119399 E-mail: secretary@icab.org.bd Website: www.icab.org.bd 16 (b) Other allowances or benefits Exemption limit should be extended to Tk 25,000 from existing Tk 20,000 as relevant A K M Rahmat Ullah Joins as Secretary of ICAB A K M Rahmat Ullah FCA Continued Page 8 A K M Rahmat Ullah FCA has joined as Secretary of the Institute of Chartered Accountants of Bangladesh (ICAB) on Thursday 30. Before his joining, he was General Manager (Accounts & Budgeting Dept.) in Bangladesh Bank. He was Financial Management Specialist (Consultant) in IDA Project, General Manager of Social Development Foundation (SDF) under the Ministry of Finance, GoB and Deputy Director (Audit) in Bangladesh Open University. He is a Fellow Member of the Institute. He did his Masters in Accounting from the University of Dhaka in 1981. 53 years old chartered accountant credited many professional trainings through his 28 years in service both home and abroad. Some of them are on distance education administration and financial management in Canada, fiduciary management training of community driven development project in Italy and liquidity risk management and stress testing under IFSB Standard by the Islamic Financial Services Board in Malaysia and Modern Office Management and Moral Development from the Bangladesh Institute of Administration & Management (BIAM). Chittagong: HBFC Building (3rd Floor), 1/D, Agrabad Com. Area, Chittagong, Bangladesh Tel: 880-31-724674 Fax: 880-31-813579 E-mail: icabctg@spctnet.com UK Chapter: Suite One, 2 Haydons Road, London SW19 1HL, United Kingdom Tel: 44-020 8544 1234 Fax: 44-020-8544 1400 E-mail: frahman101@aol.com North American Chapter: 5 Massey Square, Suite-2519, Toronto, Ontario M4C 5L6, Canada Tel: 416-686 6760 Fax: 416-916 1091 E-mail: shahed.sharfuddin@td.com