Appendix-I:

Special Provisions Relating to Avoidance of Tax under Chapter-XI of ITO

• Section 104: Avoidance of tax through transactions with non-
residents [Where any business is carried on between a resident and a non-
resident and it appears to the DCT that, owing to the close connection
between them, the course of business is so arranged that the business
transacted between them produces to the resident either no profits or
profits less than the ordinary profits which might be expected to yield in
that business, the DCT shall determine the amount of income which may
reasonably be considered to have accrued to the resident from such
business and include such amount in the total income of the resident.]

• Section 105: Avoidance of tax through transfer of assets [Any

income which becomes payable to a non-resident by virtue, or in
consequence, of any transfer of assets, whether alone or in conjunction
with associated operations, shall be deemed to be the income of the person
who (a) has acquired, by means of such transfer or associated operations,
any right by virtue, or in consequence, of which he has power to enjoy,
whether forthwith or in future, the income which becomes so payable to
the non-resident, or (b) has received or is entitled to receive at any time,
for reasons attributable to such transactions or associated operations, any
sum paid or payable by way of loan or repayment of loan or any other
sum, not being a sum paid or payable as income or for full consideration of
money or money’s worth; subject to other conditions of section 105.]

• Section 106: Avoidance of tax by transactions in securities

[Where the owner of any securities sells or transfers those securities and
buys them back or reacquires them, or buys or acquires similar securities,
and the result of the transactions is that any interest becoming payable in
respect of the original securities sold or transferred by the owner is not
receivable by the owner, the interest payable as aforesaid shall be deemed
to be the income of such owner and not of any other person; subject to
other conditions of section 106.]

• Section 107: Tax clearance certificate required for persons

leaving Bangladesh [Subject to such exceptions as the NBR may make in
this behalf, a person who is not domiciled in Bangladesh, or a person who
being domiciled in Bangladesh at the time of his departure is not, in the
opinion of an income tax authority likely to return to Bangladesh, shall not

DCCI 1 September 11, 2007

leave Bangladesh without obtaining from the DCT authorised in this
behalf by the NBR (a) a tax clearance certificate, or (b) if he has the
intention of returning to Bangladesh, an exemption certificate which shall
be issued only if the DCT is satisfied that such person has such intention;
and such exemption certificate may be either for a single journey or for all
journeys within the period specified in the certificate; subject to other
conditions of section 107.]

DCCI 2 September 11, 2007