Bangladesh Court Rules Yunus-Founded Charity Isn’t a Shareholder in Grameenphone Deal, Upholding €48.5 million Tax Claim
Bangladesh’s High Court has ruled that Grameen Kalyan cannot treat its profit share from Grameenphone as tax-advantaged dividend income, upholding a roughly €48.5 million tax claim.
Bangladesh’s High Court ruled that Grameen Kalyan, a charity founded by Muhammad Yunus, never held shares in Grameenphone Ltd. and therefore could not treat its profit share as dividend income. The decision treats the 42.65% proceeds as income from other sources and leaves a tax demand of roughly 6.7 billion taka (€48.5 million) in force. The dispute concerns an Equity Participation Agreement dated 13 April 2011 and assessments for 2012–13 to 2016–17. Grameen Kalyan says it will seek leave to appeal. Source: Stein & Partners.