Financial Times

Are tax evaders still in hiding?
By Suren Gnanaraj

Following the Cabinet decision to extend the present tax amnesty, concerns have been raised as to whether the amnesty is achieving its desired objective.

The majority of declarations under the amnesty have been made by existing taxpayers, Commissioner General of the Department of Inland Revenue, K. Suseelar said in an interview. (See inside) The Cabinet announced last week that the tax amnesty had been extended till August 15 from June 30 in order to provide a further opportunity for tax evaders to come under the tax net.

Suseelar said that more than 4,500 people have already made use of the amnesty, but many of them already have tax files and were disclosing previously hidden assets.

He said that these assets had been hidden away in certificates of deposit (CDs), gold, foreign currency and in foreign bank accounts, making it difficult for the department to detect evaders.

He said the amnesty had been extended on the request of the public, but declined to comment on whether the reason for the extension was because the government had been unsuccessful in bringing new taxpayers under the tax net. Suseelar said that the amnesty's success could only be determined once it ends on August 15.

Are tax evaders still in hiding? By Suren Gnanaraj

Are tax evaders still in hiding?
By Suren Gnanaraj