News
Tax Appeals Commission defunct; Govt. may lose billions
More than 200 tax appeal cases have been put on hold for the past six months due to the failure of the Government to constitute the Tax Appeals Commission and the revenue loss to the state could be a staggering Rs. 6 billion, officials said.
The Government risks losing the revenue due to it if it fails to complete the cases within the 270-day period (nine months) in accordance with the Tax Appeals Commission Act, they said.
Under the Act any person aggrieved by the determination of the Commissioner General of Inland Revenue in relation to the imposition of any tax or levy can submit an appeal.
Soon after the appeal is lodged, 25 per cent of the sum assessed by the Inland Revenue should be placed in a special account or a bank guarantee provided.
The Tax Appeals Commission appointed for a three-year period has been defunct after one of the members fell ill last year.
Inland Revenue officials and trade unions have brought up the issue with the Finance Ministry, stating that if the cases are not concluded during the stipulated period, it would be to the advantage of the appellants.
Inland Revenue Service Union Secretary H.A.L. Udayasiri told the Sunday Times that they had informed Finance Ministry Secretary R.H.S. Samaratunga, but little or no action had been taken.