Bangladesh Media Reports Quoting ‘Unnamed CIC Officials’ of Tax Avoidance Are Baseless and Irresponsible – Summit Group
(DHAKA/SINGAPORE, 24 December 2024): The Summit Group responded strongly today to unverified media reports quoting unnamed officials of Bangladesh’s Central Intelligence Cell (“CIC”) alleging that the country’s largest private sector power generation company – and a major source of foreign direct investment (“FDI”) – was being investigated for avoiding taxes.
“The allegations made in media reports are totally baseless and irresponsible. Not only has the Summit Group always conducted its affairs legally and in total transparency, such comments have been made by unnamed officials at a time when neither the CIC nor the National Board of Revenue (“NBR”) has officially notified the Summit Group of any lapses,” Summit said.
Bangladesh media have quoted an unnamed official as stating that Summit was involved in the country’s tax avoidance and that a demand for such taxes has been ‘unearthed’ by the CIC following cancellation of discriminatory tax privileges not available for other power companies.
The media reports have referred to failure by Summit Corporation Limited (“SCL”) – which owns and operates energy assets in Bangladesh – to deduct withholding tax while transferring dividends to its Singapore parent, Summit Power International Limited (“SPIL”).
“The accounts of both SCL and SPIL have been audited by reputed international auditors, and have received tax advice from Bangladeshi law firms including Moudud Ahmed & Associates, Barrister Rokonuddin & Associates. There is no room for Summit Group to be involved in any form of tax avoidance,” Summit added. “Under Bangladesh’s Quick Enhancement of Electricity and Energy Supply Act of 2010, tax exemptions were granted to the whole industry. The Act formed the basis for 104 contracts, out of which Summit owns and operates only three of them.”
“As a responsible corporation with a track record of providing energy and power to Bangladesh, Summit Group has always respected and adhered to the laws of both Bangladesh, where SCL operates, as well as Singapore, where SPIL is domiciled,” SPIL said. “We are dedicated to contributing meaningfully to Bangladesh’s growth and prosperity. Our operations in Bangladesh have consistently adhered to all regulations, and we take pride in upholding the highest standards of integrity and governance,” Summit said.
“The Summit Group has facilitated substantial FDI into the country and contributed in no small ways to the advancement of power and energy infrastructure in the country. We urge the media and officials to be judicious in their comments so that the due process of the law is observed. This will go a long way to improve international confidence needed for the long-term development of Bangladesh,” it added.
About Summit Power International Limited (“SPIL”)
SPIL is the largest Independent Power Producer (IPP) in Bangladesh, reflecting 17% of the country's total private installed capacity and 7% of the country’s total installed capacity. Summit owns and operates a total of 18 power plants with a combined generation capacity of 2,255MW. It also operates Bangladesh’s second Floating Storage and Regasification Unit (FSRU) and LNG import terminal with daily regasification capacity of 500 million cubic feet.
SPIL is a privately-held Singapore-registered company that is 78%-owned by the family of Mr Muhammed Aziz Khan. In 2016 SPIL acquired Bangladesh-registered Summit Corporation Ltd (SCL) in a transaction that was financed primarily by International Finance Corporation, the World Bank’s private sector arm. SCL holds various infrastructure assets in Bangladesh. In 2019, JERA Co., Inc., Japan’s largest power generation company, acquired a 22%-stake in SPIL and remains its second largest shareholder to date.
For further enquiry:
Mohsena Hassan
Email: mohsena.hassan@summit-centre.com | Whatsapp/Mobile:+8801713081905