Feb 19, 2022

Businessmen issue Rs. 3 Bn. worth dud cheques to IRD! Featured

A recent report by the National Audit Office has revealed that many taxpayers in the country, including millionaire businessmen, have given

the Inland Revenue Department Rs. 3 billion worth of dud cheques that have bounced resulting in a problematic situation for the IR Department in recovering these funds.

It is reported that 8,060 such bounced cheques have been given to the IR Department.

According to the National Audit Office, the issuance of such cheques seems to be on the rise and this paves the way for taxpayers to misuse government revenue by the IR Department failing to recover these payments.

It is also reported that there are around 88 tax payers who had issued such bounced cheques of Rs. One million and over.

The total number of such bounced cheques is around 322 worth over Rs. 1100 million.

The auditors said that this situation had arisen due to non-provision of proper banking facilities even though the taxpayers had issued checks for their taxes such as value added tax, nation building tax, income tax, economic services tax etc.

However, it is said that the IR Department is taking steps to impose a 10% penalty on taxpayers who had issued dud cheques that had bounced.