Mar 02, 2018

Collection of Rs. 20 billion of tax revenue uncertain!

Around Rs. 20 billion of tax revenue is likely to be lost due to the serious faults in the tax collection mechanism of the Inland Revenue Department, according to reports reaching 'Sri Lanka Mirror'.

This situation has arisen due to the official tipped to be appointed the next commissioner general having handing over 20 divisions that functioned under 20 commissioners in the past to just two officials.

The Department is yet to collect the tax revenue due from January 2010.

As a result, taxpayers are getting notices erroneously about the amounts they have to pay.

RAMIS not functioning properly
Meanwhile, the Revenue Administration Management Information System (RAMIS) to nab tax payment evasions is also not functioning properly.

The system has been installed at a cost of nearly Rs. nine billion.

Due to its faults, the income tax reports for 2015-16 will get caught up in the 30 May 2018 deadline, and those reports have to be accepted without an audit being held.

A deputy commissioner general is selecting files at random without any transparency for auditing purposes.

In the event the auditors find the files not sufficient enough, they have been instructed to select more files for auditing.

This could result in major tax defaulters getting unnoticed.

That same deputy commissioner general is also giving temporary solutions for the questions raised by the auditor general’s department.

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