VAT fraudsters before court in May

The Criminal Investigation’s Department (CID) has submitted reports pertaining to the value added tax (VAT) fraud worth Rs. 3.75 billion, which was under investigation throughout last year, to the Attorney General’s (AG’s) Department.

“This will be followed possibly by mid next month by the AG’s Department filing a case against the seven suspects who are in remand prison,” Ranjith Siyambalapitiya, Non-Cabinet Finance Minister told The Sunday Times FT. “There is enough evidence for a case and the seven respondents’ movable and immovable assets were confiscated by the government,” he said.

He said the modification process of both the Customs Department and the Inland Revenue is being expedited in a bid to tighten the systems and procedures which give leeway for such fraud.

“The systems and procedures are being revisited to avoid leakages,” he said. Siyambalapitiya said there are nine more suspects who are evading capture. “They are believed to be hiding in other countries,” he said. Some suspects are former employees of the Inland Revenue including deputy tax commissioner Gnanasiri Zoysa Jayathillake.