The recent statistics from Bangladesh Bank reveal a significant rise in bank deposits held by housewives, reaching a record high of Tk 7,215 crore in September 2023, up from Tk 5,223 crore the previous year. This surge comes at a time when the number of millionaire men’s bank accounts has notably decreased.
Experts suggest that many wealthy individuals are shifting their assets into their wives’ names as a strategy to mitigate income tax pressures and avoid financial scrutiny. Mirza Walid Hossain, President of the Bangladesh Jubo Arthonitibid Forum, noted that this trend is increasingly common among millionaires, who are seeking ways to keep their finances under the radar. “As the dynamics of household finance shift, the implications of these trends on the economy and gender inequality remain critical areas of focus for policymakers and society at large”, added Mirza.
He revealed that many millionaires are strategically depositing their money into their spouses’ accounts, a maneuver aimed at avoiding income pressure and evading taxes.
Hossain highlighted that this phenomenon has been on the rise, as economists observe that keeping wealth in the names of housewives has become a common tactic. By moving funds into these accounts, individuals can potentially shield their
assets from the scrutiny of tax authorities, thereby enjoying a tax-free status for their wealth.
“The trend reflects a deeper issue,” Hossain stated. “Coordination between tax and bank data is essential. Unfortunately, inconsistencies in this data are leading to an increase in tax evasion and corruption.”
This insight raises critical questions about transparency in financial systems and the responsibilities of financial institutions to monitor and report suspicious activity. As the gap between the wealthy and the rest of society continues to widen, it becomes imperative for policymakers to consider the implications of such tax evasion tactics.
Tackling this issue is essential for creating a fair and just economic landscape where everyone contributes their fair share. It is a call for action to ensure that the financial system is not exploited, and that wealth is distributed more equitably across the population.
In recent discussions on the state of wealth management and taxation with the Daily Industry Correspondent, Shah Mostafa Jamal, Chairman of Amial International told that many wealthy individuals are choosing to deposit their funds into their spouse’s accounts as a strategy to evade taxes and reduce income pressure. “This practice, while seemingly clever, raises significant concerns regarding transparency and integrity in financial systems” added Shah Jamal.
Jamal emphasized the growing necessity of aligning tax and banking data to combat these practices. He stated, “A cohesive approach is essential to tackle these discrepancies.” His call for a unified strategy highlights the importance of collaboration between financial institutions and tax authorities to identify and address tax evasion effectively.
“The implications of this situation are far-reaching. As millionaires look for ways to protect their wealth, the potential for corruption and misuse of banking services increases. By strengthening the relationship between tax systems and banking data, authorities could not only enhance compliance but also restore public trust in financial institutions”, also added Shah Jamal.
The solutions are complex and require innovative thinking, Shah Jamal opined. “Enhanced data-sharing practices, improved regulatory frameworks, and a focus on ethical banking are essential steps toward achieving a more transparent and accountable financial environment”, he said.
SM Mizanur Rahman, Secretary General of Islamic University Alumni Association highlight that this practice of depositing money in the names of housewives reflects broader issues surrounding tax evasion. “The rise in accounts in housewives’ names is often linked to efforts to manage tax obligations more effectively”, added Rahman.
However, this trend occurs alongside a concerning report from the labor force survey, which indicates a decline of 3.5 lakh in the number of working women in the country. Notably, 40 percent of working women are classified as housewives, lacking independent income sources. This raises questions about the legitimacy of the deposits in their names, prompting calls from economists for thorough verification.
Rahman also emphasized the importance of aligning tax and banking data to address the growing concerns of tax evasion and corruption. He stated, “A cohesive approach is essential to tackle these discrepancies.”
Moreover, ongoing discussions regarding gender equity in the workplace reveal that working women in Bangladesh earn, on average, 5 percent less than their male counterparts. Analysts are advocating for robust measures to enhance women’s economic empowerment and ensure fair compensation.
