“Tax Consultant’s Mafia Troubles Acting Tax Chief”
I read the above article last week in the Business Times where it is stated that the acting Tax Chief, her officials and some of the union leaders are trying to build up allegations against tax consultants who are doing it as a profession and/ or a business. Either way they give their best service to their clients. The tax consultants’ service is not the main reason for the drop in tax revenue of the country.
I am a Senior Finance Officer with more than 30 years experience and I’m looking at this issue not as a tax consultant, but one of inefficiency, low attitude and non cooperation to the tax payers by the Inland Revenue staff.
They always try to collect the balance 5 per cent (of the population) of tax dues from the 95 per cent who pay taxes voluntarily and they are not bothered about those who have not paid taxes and use their profits as black money.
I have the experience to prove the inefficiency of the staff of the Inland Revenue as unnecessary tax assessments were issued 10 years ago without proper study and are still pending. Even assessors don’t know the reason behind the issuance of those assessments.
In Sri Lanka there are three main Revenue Departments such as Sri Lanka Customs, Excise and Inland Revenue. However all three departments act independently and there are no interconnections between each other.
Only input and output VAT is linked with the Customs and Inland Revenue. On several occasions I have written to the Secretary to the Treasury, all the Heads of Revenue Departments and the media about tax evasion and how to improve the tax revenue of the country. But no one is interested in my proposals.
The genuine business community cannot face competition due to the non-tax paying businessmen and organisations selling their products at lower prices as against genuine tax-paying businesses. All three revenue departments have no concern about the economy and the business environment. The main goal is to collect the taxes through easy ways such as PAYE, Custom Duty and Excise Duty, etc.
The department should focus on the non tax payers who are having luxurious lives. As well known, high level investments are made by using non-tax paid profits to acquire properties such as apartments, vehicles, etc.
If revenue departments act with closed eyes just like the acting Tax Chief (as seen in the picture published in the Business Times last week) Sri Lankans should have serious concerns. All heads of revenue departments please open your eyes.
Vijitha Siriwardena
Homagama