Dear Joy One does not need to be an economist to know the difference between tax evasion and tax avoidance. I am not an economist and it takes a minute or two from anyone to understand the difference. If you speak for yourself then we can respectfully disagree and debate. Please make it clear if by `we' you are including the ruling party and prime minister. We can adjust the discussion accordingly. It is after all the prime minister of Bangladesh who does not know the difference. I respectfully disagree with you. He did not stand up and say `I say I am an idol and therefore I am an idol'. He has been made an idol and he has used that to the advantage of Grameen and to the advantage of his ideas. Don't imagine that Hasina or Khaleda could have raised funds abroad for Patriotism. I would rather listen to Yunus talk about patriotism than listen to any politician who inspires you with patriotism. He may not be the best possible patriot but he a bigger and better patriot than either Hasina or Khaleda. For your clarification: Yes, Grameen is doing business and should pay taxes. But it is up to the government to ensure Grameen pays taxes - we should not rely on the Norwegians. Yes, Grameen has enjoyed an unprecendented tax holiday. But that is the fault of the government – not the fault of Grameen. Yes, Grameen may have made exaggerated claims. That's the operating environment our politicians have created. But it is the failure of government that has allowed Grameen to make such claims. Yes, Grameen received a lot of money since 1972. But the government of Yes, microcredit is not the answer to everything. Yes, NGOs are harsh with borrowers. As you said, they are businesses. Government banks are sometimes forgiving because they have to be – there are political consequences if they are not. NGOs are under no pressure to forgive. That is again the fault of government. Yes, NGOs are not sovereign. But their behaviour is the fault of the government. It is the government that has turned our country into a safe haven for NGOs. Yes, NGOs should be regulated and audited. Nobody disagrees with that. But if government is useless at it I wouldn't blame the NGOs. Dr Yunus' approach to this is correct. Creating companies and moving funds to reduce the tax burden – all within the law. These were not shell companies. It is not his job to go the tax authorities and say – hey, I did this to reduce tax. Nobody does that. Not even the Advisors to the Prime Minister. Having said all this I still respect your opinion. By all means criticize high interest rates, unforgiving terms, tax holidays etc. But please, what is the real question? The real question is – if the government does nothing in the next year to properly address your concerns will you hold the government to account? Probably not. Regards Ezajur Rahman
>
> Dear Mr Ejajur
> In response to your comments:
> Though we are not economist we understand a little bit about tax evasion and tax
> avoidance. As a 'Paid' executive of Grammen Bank, Dr Yunus has every right to
> look after the 'wellbeing' of his company. He can use every legitimate way to
> reduce the tax as many of us do. But then he should not play the role of 'IDOL'.
> He is just another executive of a profit generating corporation and should stop
> teaching us about Patriotism.
> Gr Bank is not a charity. It is doing business; taking interest from people some
> times at a very high/controversial rate. If it is earning money it has to pay
> taxes as many of general public do.
> It is also enjoying an unprecedented Tax holiday for long.
> Regarding NGOs developmental works and its impact on economy, there is still
> controversy.
> The total amount of money they received since 1972 for working in Bangladesh
> should have changed the lives of 'All' the people of this country which has
> clearly not happened. It is not that they are not contributing; they are
> contributing but not to the scale they claim. And Micro credit is not the answer
> to every thing.
> The Govt is taking interest from people after lending money through Govt owned
> Banks. But can you cite one example of any NGO surrendering their loan and
> interest when their clients have suffered a natural disaster (flood, cyclone,
> drought) which is often case with national banks (e..g.Krishi Bank).
> NGOs are not sovereign they should be regulated and expenses audited.
> My objection is with Dr Yunus's attitude towards the whole event: creating many
> companies and transferring funds amongst them to avoid tax and to conceal the
> whole thing from authority. This tax is not the money of any party Government.
> It is the money which belong to people of Bangladesh.
>
> Regards
> Joy
>
> Feeble explanation from Yunus' / New Age 16/12/10
> In a letter published on Wednesday's New Age, F Islam complains about Muhammad
> Yunus's explanation about the transferring of funds to reduce Grameen's tax
> burden. To that, I have the following comments.
> Firstly, the finance ministry should hold a seminar for the leaders of
> the ruling party, various ministers and the citizens to explain the difference
> between the extremely complex concepts of tax evasion and tax avoidance.
> Secondly, it is a contradiction to say that charging interest is forbidden in
> Islam but that interest should be charged to cover operating expenses.
> Thirdly, it is a contradiction to object to any interest activity by a
> non-governmental organisation when the government itself is responsible for most
> interest activities. Also, it is a contradiction for NGOs to work in development
> but still pay tax to fund the government's development activities and it's a
> contradiction to tax interest income on donor funds when that income is also
> used for development activities.
> Also, it is a contradiction for the government to penalise NGOs when their
> very existence arises from the failure of the government to meet the needs of
> the people.
> Finally, it is contradictory to demand an investigation into the tax affairs
> of NGOs without asking for an investigation into the tax affairs of any
> politician in Bangladesh. It is highly irregular for people to object to this
> transaction and yet have no objection to the appalling manner in
> which Grameen and Muhammad Yunus have been slandered by the ruling party.
> Ezajur Rahman
> Kuwait
>
> Feeble explanation from Yunus / New Age 15/12/10
> Muhammad Yunus's explanation about the money transfer to another NGO under his
> direct control to evade tax is highly irregular. Tax is collected from a person
> or organisation for the benefit of the country and for its development. I
> believe there shouldn't be any profit motive by any organisation believed to be
> running for the benefit of the poor. The charging of interest to extract money
> from poor is not allowed in our religion. The interest should be charged only to
> recover the running cost of the process of the lending operation.
> F Islam
> Dhaka
>
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