Financial Times

Conflict of interest issues for new appointee

Former Tax Chief returns to department for 2-week period

S. Angammana, who relinquished duties as Commissioner-General of the Inland Revenue Dept (IRD) last week and moved to the Finance Ministry, was on Monday recalled for a temporary, 2-week period to oversee the work of the department, IRD officials said.

At the same time, the department also moved out of the Fort headquarters building, handing it over to the State Engineering Corporation for renovation and reconstruction. Mr Angammana returned to his former job, since the new appointee, Appeal Court Judge K.T. Chitrasiri, is yet to receive his letter of appointment amidst concern that there could be conflicts of interest in a judge being appointed to this position.

Last week, The Sunday Times FT reported that work at the IRD will come to a standstill if the new Commissioner-General doesn’t take office on May 4. IRD officials said the new tax chief has to delegate powers (by letter) to his deputies and all other staff and if this is not done, the latter cannot proceed with their work under the regulations.

Justice Chitrasiri has said he would continue as an Appeal Court judge in addition to his new appointment. But legal and tax experts are raising concerns over a sitting judge heading a government department, at the same time. “There are many issues. For example, the Commissioner-General is listed as the first respondent in cases filed by taxpayers and if so can a court take action against him (a judge)? There have been instances where the Tax chief has been summoned to court and in this case is that possible (to summon a judge)?” one expert said adding that there are several issues of conflict in holding two positions, particularly for a judge.

Meanwhile, most of the departments including the office of the Commissioner-General have been moved to Access Building at Union Place. Other departments are being housed at Ascot building and (former) Readyware Garments building at Park Street, near the United Motors office.

Although only two floors (13th and 14th) were damaged in the LTTE air attack in February, the structure of the building was affected, requiring a full renovation, the officials said.


 
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