Chapter 16: Offenses, Investigation, and Penalties

Section 96: Investigation Procedure of Offenses

1. The MUSHOK officer filing the case shall complete the investigation within four months from the acceptance of the case by the court and submit the investigation report to the Commissioner through the court. However, the court may extend this period by an additional three months upon request by the investigating officer.
2. If the investigation is not completed and the report is not submitted within the prescribed or extended time, the allegations of the case shall be considered unproven.
3. The investigating officer shall inform the accused of the charges using Form "MUSHOK-16.1" and may request a confession statement within 15 days of receipt of the notice.
4. The accused shall provide a response to the investigating officer using Form "MUSHOK-16.2" within the specified time.
5. The investigating officer shall review the collected information and submit a report to the Commissioner within the prescribed timeframe.
6. The accused shall be given a reasonable opportunity to be heard during the investigation.
7. If the accused refuses to give a confession under sub-clause (4), and the case is subsequently proven, the accused's name and necessary details shall be published in the list of offenders under the law.

Section 97: Compounding of Offenses

1. The Board may compound an offense if the accused:
   1. Applies in writing to the Board for compounding;
   2. Submits an affidavit promising to pay the tax due in installments as determined by the Commissioner;
   3. Agrees to bear administrative costs of compounding.
2. The Board cannot compound a case if the accused has committed a similar offense previously.
3. The Board shall provide an opportunity for hearing to the applicant, the Commissioner, and the officer who filed the complaint.

Chapter 17: Appeals and Revisions

Section 98: Appeals to Commissioner (Appeals)

1. Any aggrieved taxpayer or MUSHOK officer may submit an appeal to the Commissioner (Appeals) responsible for their jurisdiction.
2. The Commissioner (Appeals) shall announce a hearing date within seven days and notify both parties.
3. The Commissioner shall conduct the hearing with the presence of both parties or their authorized representatives.
4. The Commissioner may constitute a committee of one or more members for further investigation if necessary.

Section 99: Alternative Dispute Resolution (ADR) Procedure

1. If a dispute under VAT or any pending appeal is to be resolved under Section 125, the taxpayer or registered person must apply using Form "MUSHOK-17.1" as follows:
   • Two copies for disputes under Commissionerates;
   • Three copies for disputes under Appeals Commissionerate or Appellate Tribunal.
2. The applicant must designate a facilitator from the prepared list under Rule 101.
3. The concerned Commissioner or authority shall record the application details in Form "MUSHOK-17.2".
4. The Commissioner shall appoint a departmental facilitator within three working days and notify all parties within two days.
5. The application and related documents shall be transmitted to the appointed facilitator within nine working days.
6. The facilitator shall take necessary steps for dispute resolution within three working days of receiving the documents.

Section 100: Objection Against Facilitator

1. If the applicant or VAT representative has a reasonable objection against the facilitator, a written request must be submitted to the Board.
2. The Board shall investigate and may replace or remove the facilitator within ten working days.
3. If replaced, a new facilitator shall be appointed from the list.
4. Time spent on facilitator replacement shall not be counted against statutory dispute resolution periods.

Section 101: Eligibility, Appointment, and List of Facilitators

1. The Board shall prepare a list of qualified facilitators, including:
   • Retired VAT officers, additional commissioners, or equivalent;
   • Retired officers of Bangladesh Judicial Service at least of additional district judge level;
   • Lawyers or chartered accountants with at least 7 years’ experience in VAT;
   • Retired government officers with experience in law and legislation;
   • Businesspersons with at least 15 years’ business and VAT experience.
2. The Board shall review each facilitator’s performance every six months and update the list.
3. The list shall be published on the official website and regularly updated.

Section 102: Duties of Facilitator

1. The facilitator shall:
   • Determine the issues for resolution;
   • Decide the procedure, strategy, or framework for ADR;
   • Fix venue, date, and time of ADR sessions;
   • Notify parties to submit documents in writing.
2. The facilitator may mediate between parties to achieve lawful resolution.
3. If a party fails to cooperate without legal reason, the facilitator may cancel the ongoing ADR process without notice.
4. If an agreement is reached, the facilitator shall record the terms in Form "MUSHOK-17.3" and obtain signatures of both parties within three working days.
5. If no agreement, the facilitator shall record reasons in Form "MUSHOK-17.3" and submit to the relevant Commissioner or Appellate Tribunal within two working days.
6. The facilitator shall determine the time and method of payment or refund based on the ADR agreement.
7. The implementation of agreement decisions is binding for both parties.

Section 103: Code of Conduct for Facilitator

• Maintain honesty and integrity;
• Act independently and impartially;
• Not take actions beyond the scope of application;
• Assist in reaching agreements;
• May take expert advice with mutual consent;
• Resolve disputes within the prescribed time;
• Maintain confidentiality of information and ADR proceedings except by law or mutual consent.

Section 104: Conflict of Interest

1. Representatives or facilitators shall not act if they have a conflict of interest.
2. If impartiality is compromised, the facilitator must return the dispute to the authority and notify the parties in writing.
3. If a conflict arises after ADR begins, the Board may withdraw and appoint a new facilitator.

Section 105: Rights and Duties of Applicant

1. The applicant may independently negotiate the dispute under the supervision of the facilitator and departmental representative.
2. Professional advisors may participate in the ADR process.
3. Serious criminal or public-interest cases and major legal interpretations are excluded from ADR.

Section 106: Appointment of Departmental Facilitator

1. The Commissioner shall prepare a list of at least five competent and proactive officers from the VAT office to act as departmental facilitators and review performance every six months.
2. The departmental facilitator shall act independently and professionally in ADR discussions with the applicant’s facilitator.

Section 107: Remuneration of Facilitator

50% of facilitator expenses are borne by the government and 50% by the applicant.

Section 108: Preservation of Rights

No participant or facilitator in ADR shall be compelled to provide testimony or disclose documents in court, tribunal, or authority, nor shall civil or criminal cases be filed regarding any ADR materials.