ICGAB Syllabus Change
Taxation (P10) & Advanced Taxation (A19)
Syllabus
(Effective from September 2019)
Taxation
P-10
All questions must be attempted
Answer in serial order
Note calculation where necessary
Answer must be neat & clean
Student can't submit exam script before 2 hours
Aim & Objective of Paper:
This paper is designed to develop the learner's ability to explain the general objectives of taxation and the influences
upon the system of taxation in Bangladesh, provide information to individuals on the amount of taxation that they may
owe to or be owed by the taxation authorities, explain the ethical and professional issues for a professional
accountant undertaking tax work, describe the basic system of administration relating to taxation in Bangladesh,
describe how taxation in Bangladesh is applied to the income, expenditure assets, liabilities or transactions of
individuals, SMEs & Partnerships.
Syllabus Structure:
Main Syllabus Areas Weightings (%)
A Principles of Taxation 20
B Taxation records of individuals & organisation 35
C Tax Assessment 25
D Fundamentals of Value Added Tax (VAT) 20
Content:
A Principles of Taxation
Theory on Taxation: Meaning of Tax, Features and Purposes of Tax, Principles of Taxation, Classification of Taxes,
Characteristics of a Good Tax System, Tax Structure in Bangladesh.
Introduction to Income Tax: Income Tax – Meaning, Nature, Importance in respect of Contribution to Internal
Resource Mobilization – Historical Perspective of the Income Tax Ordinance, 1984 – Statutory Definitions of
Important Terms.
Ethical considerations of Tax Practices: Introduction to Ethical Responsibilities; Key ethical and professional
issues for tax work, Duties and Restrictions Relating to Tax Practice; Standards of Competence; Due Diligence; Tax
Shelter Opinions; Sanctions for Violation of the Regulations; Rules Applicable to Disciplinary Proceedings; reasons
for the existence of ethical or professional issues relating to the undertaking of tax work.
Income tax authority: Administrative and Judicial – appointment, organization structure, power and functions –
Taxes Appellate Tribunal – Registered Income Tax practitioner.
Charge of Income Tax: Basic Principles, Systems (Conventional Exemption Limit versus Filing Threshold) –
Sources of Income Tax Laws.
Scope of Total Income: Basis of Assessment of Residential Status – Income deemed to accrue or arise in
Bangladesh – Deemed Income (unexplained investment etc.) – Non – Assessable Income – Income under Specific
Heads.
B Taxation records of individuals & organisation
Salaries Income: Definition, coverage, benefits and perquisites, provident fund.
Interest on Securities: Coverage, grossing up, deductions, exclusion limit.
Income from House Property: Annual value, coverage, deductions, Tax holiday and exemption limit for newly
constructed residential houses.
Agricultural Income: Agriculture assets, deductions, set-off and carry forward of agricultural losses.
Income from Business or Profession: Definitions, Capital and revenue expenditures, coverage, partially business
income, admissible and inadmissible expenses, depreciation on business property (normal, extra, initial, accelerated
and special), set-off and carry forward of business losses and losses in speculation business, Share of Income from
firms.
Capital Gains: definitions, computation, exempted capital gains, set-off and carry forward of losses under “Capital
Gains”.
Income from other Sources: Coverage (dividend, interest on securities, royalty, fees for technical services, etc.),
deductions, Clubbing of Income, Income of Spouse or Minor child.
C Tax Assessment
Procedure of Assessment: Filing of return of income and supporting Statements. Assessment of Tax - Provisional
Assessment and Final Assessment (Correct return basis, after-hearing basis, and ex-parte) – Other issues in
assessment, self-assessment, presumptive assessment, assessment for outgoing persons and deceased persons,
assessment of escaped income, limitations of assessment, reopening of assessment.
Rates of Taxes: Tax Rate on Capital gains and income from winnings, Tax rate on other income of individuals and
firm, Tax Rate on non-residents income, imposition of Surcharge.
Modes of Tax payment: Tax deducted at source (TDS) or pay-as-you-earn (PAYE), Advance payment, Payment on
the basis of return, Adjustments with other taxes paid, and Payment on notice of demand, Tax Recovery, Tax
Refund, Tax Relief.
Tax Assessment: Individuals, Firms, Association of Persons and Co-operative Societies. Assessment covering all
heads of income – Set-off and carry forward of losses by firm’s and partner’s income including income other than
firm’s income – Allocation firm’s income – Assessment in case of change in firm’s constitution and in case of
constitution of new successor firm.
Tax planning: Tax evasion, Tax avoidance, and effective Tax planning, Prerequisite to Effective Tax planning (All
Parties, All Taxes and All Costs), Taxing Authority as an Uninvited Investment partner, Influence of Tax Rules on
Investment, Finance and Dividend Decisions, Types of Tax planning, Importance of Tax planning, Restrictions on
taxpayer behavior, Tax Arbitrage, Tax Clientele.
D Fundamentals of Indirect Taxes
Indirect Taxes: Objective of Custom Act, Custom procedure- statutory definitions of import Terms, Duties under the
custom Act 1969, General Customs Duty, import/export duty, Regulatory Duty, Countervailing Duty, Antidumping
Duty and safeguard duty, Rates of Duties, Duties Taxes and other charges collected by custom Authority at Import
point, Custom Duty (CD), Supplementary Duty (SD), Value Added Tax (VAT), Infrastructure Development surcharge
(IDSC), Advance Income Tax (AIT), Computation of Duties and Taxes at Import stage Duty, Drawback, Customs
Authority, Assessment Appeals and Revision, Offence and Penalties, Power of Search, Seizure and Arrest under
Custom Act, Travel Tax on Foreign Tours Baggage rules and related Taxes.
Introduction to VAT: Public Finance, revenue, tax-revenue, non-tax revenue, direct tax, indirect tax, Value Added
Tax; single stage tax, multiple-stage tax, proportional tax, progressive tax; The Pre-VAT Taxation System,
emergence of VAT in France, it’s expansion to other countries of Europe, Expansion of VAT in other countries of the
world; Transition to Value Added Tax; Advantages and disadvantages of Value Added Tax.
Features of Value Added Tax: Single vs. multiple rates, exemptions and zero rates, VAT threshold, difficult to tax
goods and services, retailers and other small traders, treatment to agriculture, VAT in unitary and federal system of
government, effects of VAT on prices and economy, poverty and VAT, fairness and VAT;
Types of Value Added Tax: Gross-product or gross receipt VAT, income-based VAT, consumption-based VAT;
Methods of calculating VAT liability: self-assessment, credit-invoice VAT, credit-subtraction VAT without invoices,
sales-subtraction VAT, addition method VAT.
The VAT System of Bangladesh: Introduction of VAT in Bangladesh; Organization of the VAT administration,
Introduction to Value Added Tax and Supplementary Duty Act, 2012, Review of SROs, GO’s, SO’s.
Syllabus Area Model Assessment Focus
Explain government's taxation objectives in the context of economic, social and
environmental issues
Describe the range of taxation opportunities open to government and their relative
advantages in meeting the government's taxation objectives
Explain the external influences on Bangladesh taxation objectives and policies and on the
decisions taken by the Bangladesh courts on national taxation
Principles of Explain the current response of government and the courts towards tax schemes designed
A
Taxation to circumvent the law
Explain why states negotiate and make double taxation agreements
Explain how tax treaties affect the contracting states' abilities to apply taxation
Describe the sources of national tax law and practice and their relative importance
Describe the likely impact on a taxpayer (business entity or individual) of the taxation
objectives policies and strategies proposed or adopted by governments or other
authorities.
Determine when an individual or entity comes within the scope of relevant national taxes
and what action, if any, it should take, including any time limits for that action
Identify the records that individuals and business entities must retain for taxation purposes,
and stat the periods for which those records must be retained
Taxation
Explain the relevance and importance of key ethical and professional issues for a
records of
B professional accountant undertaking tax work
individuals &
organisation Judge when to refer taxation matters for senior help.
Compute the total income of SME, a firm and its partners from the following sources of
income and tax payable thereon-salaries, interest on securities, income from house
property, agricultural income, income from business or profession, capital gains, income
from other sources.
Tax Determine due dates for the making of returns and provision of other information to the
C
Assessment relevant authorities & payments of tax
Describe the implications of late submission of returns and other information or late
payments of tax and calculate any resulting interest or penalties
Explain the different types of assessments
Identify for actual or proposed transactions those treatments that are illegal for tax
purposes and explain the reasons for the illegality
Calculate the amounts subject to national taxation, the resulting amount of tax payable or
recoverable by an individual or proprietorship and the effects of any foreign taxes on those
amounts
Identify how tax losses can be used by an individual
Explain how alternative methods of achieving personal objectives can lead to different tax
outcomes
Calculate the tax implications for an individual of different courses of action, taking into
account the relevant taxes and other implications
Understand the concept of Indirec Taxes
Fundamentals Know how VAT laws/SROs/Orders issued through government machinery
D of Indirect Know the legal framework of VAT in Bangladesh
Taxes Understand the main points of the Act and Rules
Realize how the act facilitate trade and commerce
Note:
Assessment: Assessment will be made through examination.
Link: ICGAB Formation Level Paper Knowledge.
Resources:
Learners access to ICGAB learning resources centre with a wide range of text. Learners will avail IT facilities.
Support materials:
Study Text
Bangladesh Income Tax -Theory and Practice Nikhil Chandra Shil ,
Mohammad Zakaria Masud ,
Mohammad Faridul Alam
Reference Materials
1. The Income Tax Ordinance – 1984 and the Income Tax Rules 1984 (updated)
2. The Custom Act 1969
3. The Value Added Tax and Supplementary Duty Act, 2012
4. The Excise and Salt Act – 1944 (updated)
5. The Gift Tax Act – 1920 (updated)
6. The Finance Acts (Latest)
7. Motor Vehicles Tax Act (Bengal Act. No. 1) 1932 (updated)
8. Motor Vehicle Ordinance (No. LV) of 1983 (updated)
9. Tax Planning under Direct Tax – Shuklendra A and M. G. gushn
10. Taxation – Wilkinson M. (Macmillan).
11. Foreign Exchange Regulation Act 1947
Recommended Websites:
1. Bangladesh Bank; https://www.bb.org.bd
2. Bangladesh Customs; http://www.bangladeshcustoms.gov.bd
3. Ministry of Commerce, Bangladesh; http://www.mincom.gov.bd
4. National Board of Revenue; http://nbr.gov.bd
Advanced Taxation
A-19
All questions must be attempted
Answer in serial order
Note calculation where necessary
Answer must be neat & clean
Student can't submit exam script before 2 hours
Aim & Objective of Paper:
This paer is designed to develop the learner's ability to describe how taxation in Bangladesh is applied to
the income, expenditure, assets, liabilities or transactions of business entities, provide information to
business entities on the amount of taxation that they may owe to or be owed by the taxation authorities,
advise and assist business entities and individuals in the adherence to regulations surrounding taxation,
provide information to business entities on the effects of national taxes, including circumstances where
foreign taxes affect national taxes, describe the processes of tax investigations and taxation disputes.
Syllabus Structure:
Main Syllabus Areas Weightings (%)
A Corporate Taxation 50
B Tax Investigations and Taxation Disputes 15
C Applied VAT, SD, Customs Act in Bangladesh 25
D Property, Gift Taxes & Miscellaneous Issue 10
Content:
A Corporate Taxation
Corporate Taxation: Definition, Determination of total income, Rates and Rebates, classification of companies
according to Income Tax Law. Assessment of Various types of Companies including bank and insurance companies,
companies engaged in extraction and exploration of material resources, private and public companies, multinational
group companies, Corporate fiscal incentives.
Provident, Superannuating, Pension and Gratuity Funds: Kinds of Provident Funds (PF) – Statutory, General &
Contributory; Recognized and Unrecognized – privileges of Recognized PF, Approved Superannuation, Pension and
Gratuity Funds.
Liabilities in special cases: Liabilities of representatives, agents, firms, association of persons, partners, company
directors, liquidators, etc.
B Tax Investigations and Taxation Disputes
Income tax audit in Bangladesh: Meaning of tax audit; Types of Audits (Correspondence, Office, Field), need for
tax audit; conceptual issues of tax audit; Tax Audit and Investigation; existing scenario of tax audit in Bangladesh:
focusing on tax system, tax audit practice, tax audit ambit, tax auditor, tax audit report; existing extent of assessment
under tax audit net.
Ethical considerations of Tax Practices: Introduction to Ethical Responsibilities; Key ethical and professional
issues for tax work, Duties and Restrictions Relating to Tax Practice; Standards of Competence; Due Diligence; Tax
Shelter Opinions; Sanctions for Violation of the Regulations; Rules Applicable to Disciplinary Proceedings; reasons
for the existence of ethical or professional issues relating to the undertaking of tax work.
Appeals, Revision and Reference: Appeal and or Revision against DCT, Tax Recovery Officer (TRO), Decision of
appeal by AJCT, Taxes Appellate Tribunal, High Court Division and Appellate Division.
C Applied VAT, SD, Customs Act in Bangladesh
VAT Accounting in Bangladesh:
Input-Output Co-efficient or Price Declaration; Price declaration of Goods with Tariff Value; Price Declaration by
trader/commercial importer; Input-Output Co-efficient of exempted or exported or deemed exported goods; VAT
Invoice; Invoice for sending raw-materials to contractual manufacturer from the place of supply of the owner; Invoice
for sending raw-materials from the place of supply of the owner/warehouse/directly from port of importation in case of
contractual manufacturing; Debit Note; Credit Note; VAT Deduction at Source (VDS); VDS Certification; Purchase
Register; Sales Register; Account Current Register; VAT on traders.
Practical VAT in Bangladesh:
VAT accounting computerization; Use of software: practical demonstrations; VAT automation in Bangladesh; VAT
Call Center; VAT Registration/enlistment, change in registration/enlistment, cancellation of registration/enlistment;
Application for VAT Registration; Declaration for premises, plant, capital machinery, fittings, produced goods,
services to be rendered, and raw-materials; Application for changes of business place or status; Application for
cancellation of VAT registration; Warehousing Rules; Application for removal of goods for export; Receipt for Seizure
Personal Undertaking; On the spot release of goods and vehicle; Application for summary adjudication; Contractual
manufacturing; How to write reply to show cause notice; Filing application for Alternative Dispute Resolution (ADR);
Application for Duty Drawback; Return; Turnover Tax Return; Application for disposal of unused or unfit for use raw
materials; Application for disposal of goods not fit for supply or impaired.
Customs and Border Tax:
Introduction to Customs Administration and legislative process: Bangladesh Context; Introduction to The Customs
Act, 1969; Introduction to Customs-related Acts and Rules; Customs Procedures; Customs Valuation; Import Taxes:
Customs, VAT, SD, AIT, ATV, etc.; World Trade Organisation and its agreements; World Customs Organisation and
its instruments; International Trade Terms; Customs Enforcement and Risk Management; Trade Facilitation and
Supply Chain Security; Warehousing, Customs Bond, and duty exemptions; Coordinated Border Management and
Anti-smuggling operation; Customs Brokers (C&F Agents) and their activities.
Other Taxes: Excise duty, objectives, Current coverage of excise taxation, Tax Collection, Tax Collectors, Narcotizes
duty.
D Property, Gift Taxes & Miscellaneous Issue
Property & Gift Taxes: Property related Tax under Income Tax law, Income tax on investment, Tax on national
income, Capital gain tax on transfer of property, Gift for, Charge of gift tax, Taxable Gifts, Exemption from Gift-tax,
Determination of the value of Gifts, Return of gifts Gift tax payable, penalty, Prosecution, Assessment procedures,
Rates, Authorities.
Miscellaneous issues: Offence and Prosecution, Methods of Accounting, Double Taxation Relief, Tax Avoidance,
Bond Washing Transactions, Tax-holiday and Tax-exemption Scheme, Industrial undertakings, Tourist Industries,
Objectives and Importance of the Scheme – Accelerated Depreciation.
Syllabus Area Model Assessment Focus
Identify investments and expenditure which legally reduce tax liability and judge when they
might be appropriate.
Identify for actual or proposed transactions those treatments that are illegal for tax
purposes and explain the reasons for the illegality.
Explain how tax considerations can affect any investment decisions of a business entity.
Explain how tax considerations can affect financial reporting by an entity.
Identify how tax losses can be used by a business entity.
Corporate
A Describe the effect of a change in the ownership of a business entity on its tax losses.
Taxation
Explain how alternative methods of achieving business objectives can lead to different tax
outcomes.
Calculate the tax implications for a business entity of different courses of action, taking into
account the relevant taxes and other relevant implications.
Calculate the amounts subject to national, regional and local taxation, the resulting amount
of tax payable or recoverable by an entity.
Identify the effects of any foreign taxes on those amounts.
Tax
Identify the periods within which the relevant authorities can enquire into a taxpayer's
Investigations
B returns or other information and tax liabilities and describe the taxpayer's right of appeal.
and Taxation
Describe the process for dealing with taxation disputes.
Disputes
Demonstrate the concept and definition of Indirect Tax.
Identify the VAT registration procedures, time & mode of VAT Payment.
Determine value for application of VAT
Applied VAT,
Identify the application of zero rate, normal rate, truncated value and tariff value for VAT.
SD, Customs
Recognize VAT deduction and/or collection at source.
C Act in
Identify the input tax and output tax adjustment procedures
Bangladesh
Explain the turnover and supplementary duty
Describe the VAT books of accounts
Identify the concept of various import taxes
Learn various methods of payments and its implications on duty calculation
Property, Gift
Calculate the tax implications Property related Tax under Income Tax law
Taxes &
Identify the tax implications Charge of gift tax
D Miscellaneous
Assess the value of Double Taxation Relief
Issue
Describe the Bond Washing Transactions
Assessment: Assessment will be made through examination.
Link: ICGAB Professional Level Taxation Paper expertise.
Resources:
Learners access to ICGAB learning resources centre with a wide range of text. Learners will avail IT facilities.
Support materials:
Study Text
Bangladesh Income Tax -Theory and Practice Nikhil Chandra Shil ,
Mohammad Zakaria Masud ,
Mohammad Faridul Alam
Recommended Readings:-
1. The Income Tax Ordinance – 1984 and the Income Tax Rules 1984 (updated)
2. The Custom Act 1969
3. The Value Added Tax and Supplementary Duty Act, 2012
4. The Excise and Salt Act – 1944 (updated)
5. The Gift Tax Act – 1920 (updated)
6. The Finance Acts (Latest)
7. Motor Vehicles Tax Act (Bengal Act. No. 1) 1932 (updated)
8. Motor Vehicle Ordinance (No. LV) of 1983 (updated)
9. Tax Planning under Direct Tax – Shuklendra A and M. G. gushn
10. Taxation – Wilkinson M. (Macmillan).
11. Bangladesh Customs Tariff, National Board of Revenue (NBR), Bangladesh
12. SAFE Framework of Standards, World Customs Organization
Recommended Websites:
5. Bangladesh Bank; https://www.bb.org.bd
6. Bangladesh Customs; http://www.bangladeshcustoms.gov.bd
7. Ministry of Commerce, Bangladesh; http://www.mincom.gov.bd
8. National Board of Revenue; http://nbr.gov.bd
