Though $500m in UK, ex-minister Saifuzzaman has only Tk19cr assets in Bangladesh!

Highlights

• Al Jazeera reports Saifuzzaman has assets worth over $500 million in UK
• However he did not mention his foreign assets in his tax file
• In 2022, a provision mandated the declaration of offshore assets in tax files
• NBR may impose tax on offshore assets, along with penalties
• Though $500m in UK, ex-minister Saifuzzaman has only Tk19cr assets in Bangladesh!

Former Land Minister Saifuzzaman Chowdhury Javed reportedly owns hundreds of apartments abroad and wealth amounting to thousands of crores of taka, yet his declared assets in Bangladesh total only Tk19 crore.

The preliminary investigation by the Central Intelligence Cell (CIC) of the National Board of Revenue (NBR) has revealed that the former land minister declared a net asset of Tk18.77 crore in the country for the fiscal 2023-24. During the period, he reported an income of Tk74 lakh, on which he paid Tk19.26 lakh in taxes.

According to the existing income tax law, any individual’s assets abroad, even if earned overseas, must be disclosed in the country’s income tax file. However, information from the CIC indicates that the former land minister did not report his foreign assets in his tax file.

When asked about the penalty for not declaring foreign assets, Ikhtiar Uddin Mohammad Mamun, director general of BCS Tax Academy, told TBS, “If foreign assets are not disclosed, there is a legal provision to confiscate those assets.”

Another senior tax official, who was involved in formulating tax policy, told TBS, “In 2022, a provision was introduced requiring the declaration of offshore assets in addition to domestic assets in tax files. Failure to comply will result in income tax being imposed on those assets, along with penalties.”

He added, “Additionally, if necessary, a criminal case can be filed, and upon receiving a court order, those assets can also be confiscated.”

A senior NBR official, speaking on condition of anonymity, told TBS, “We have decided to initiate contact with the UK government to gather information regarding his assets. A letter will be sent to them soon.”

However, former NBR chairman Muhammad Abdul Mazid told TBS, “The individuals whose tax files are now being investigated have been paying taxes for a long time. So, why weren’t their tax files audited all these years? The officials who allowed these files to pass without scrutiny should also be held accountable, and legal action should be taken against them.”

He further said, “There is a lot of talk and investigation ongoing right now, but once the situation calms down, the accused might end up getting away with it again.”

NBR officials said Saifuzzaman declared assets totalling Tk25.74 crore, including investments in banks, cash, the stock market, and agricultural and non-agricultural land, along with liabilities amounting to Tk6.97 crore. His net assets thus stand at Tk18.77.

An investigative report by Qatar-based Al Jazeera states that the former land minister possesses assets worth over $500 million, including 360 properties in the UK and various other countries.

Earlier this year, after news about his offshore assets was published in the country’s media, Saifuzzaman acknowledged the existence of assets in the UK, the United States, and several other countries during a press conference at the National Press Club in the capital on 2 March. He claimed that these assets were acquired through legitimate business channels.

Meanwhile, Bangladeshi-origin British MP Apsana Begum has urged the UK’s National Crime Agency (NCA) to investigate allegations of corruption and money laundering against former Bangladesh land minister Saifuzzaman Chowdhury.

In a letter to NCA Director General Graeme Biggar, Apsana Begum stated that Saifuzzaman is already under investigation by Bangladesh’s Anti-Corruption Commission (ACC) for alleged embezzlement and claims that he laundered millions of dollars into the UK.

She wrote the letter following the Al Jazeera report that revealed how the former Bangladeshi minister built a property empire now subject to corruption investigations.

“74 properties are in Poplar & Limehouse. The National Crime Agency must freeze, investigate & repatriate assets & funds belonging to Bangladesh,” Apsana wrote on her verified Facebook page in a post that also included a photo of the letter.

In her letter, the UK MP cited an Al Jazeera report titled “The Minister’s Millions,” which focuses on Saifuzzaman’s accumulation of substantial wealth overseas.

“The assets in question belong to Bangladesh and I believe they must be returned to support the people of Bangladesh as they strive for democracy and a society that is run in their interests,” she said in the letter.

Citing a Financial Times report, Apsana pointed out that entities controlled by Saifuzzaman have acquired at least 280 properties in the UK, with a total value exceeding 150 million pounds.

“Given that Bangladesh’s ACC is seeking international cooperation to recover any misappropriated funds, I would be most grateful if you could clarify what steps have been taken to investigate and freeze all UK-based assets owned by Mr Chowdhury and others subject to these corruption investigations,” she wrote.

She added that freezing and repatriating the relevant funds is crucial not only for justice and the protection of people’s rights in Bangladesh but also for safeguarding the UK’s reputation and international standing.

The Al Jazeera report, published on 18 September, revealed that Saifuzzaman Chowdhury has amassed a staggering amount of wealth abroad, ranging from hundreds of luxury properties spread across multiple continents, to luxury cars, crocodile shoes, and Italian suits.
The report highlighted that his property buying gained pace in 2017 when he set up UK companies but accelerated in 2019 when he became a government minister.

Earlier this year, Bloomberg News reported that Saifuzzaman Chowdhury has built up a UK real estate empire of more than 350 properties worth over Tk2,000 crore.

The Bloomberg reports also suggest the former minister’s involvement in investments in Manhattan, US, further adding to the scrutiny surrounding his financial portfolio.