(1) Where any person being a resident Bangladeshi is found to be the owner of any offshore asset not disclosed in the return and the assessee fails to offer satisfactory explanation about the nature and source thereof or the explanation offered is, in the opinion of the Deputy Commissioner of Taxes, not satisfactory, in that case, the Deputy Commissioner of Taxes shall charge penalty equal to the fair market value of such offshore asset on the assessee and proceed to recover thereof.

(2) The provisions of sub-section (1) shall not prejudice any liability arising under this Act or any other law in force in Bangladesh.

(3) In the imposition of penalty under sub-section (1), the assessee shall be given a reasonable opportunity of being heard.

(4) The Deputy Commissioner of Taxes shall have the authority to recover the penalty under sub-section (1) by confiscating or selling any asset held by assessee or any other person on behalf of the assessee.

(5) The Deputy of Commissioner of Taxes shall have the power to conduct an onshore and offshore investigation, where he has reason to believe that an assessee has offshore assets not disclosed in the return.

(6) To prevent holding undisclosed offshore asset in the return and to recover such laundered offshore asset, the Board may—

(a) take such necessary action as it deems fit; or

(b) approve, permit or arrange an inquiry or investigation by any income-tax authority not being below the rank of Deputy Commissioner of Taxes.