Special courts for revenue cases
By Chandani Kirinde
The Auditor General has recommended the establishment
of specialised courts for tax and customs matters to minimise loss
of Government tax revenue which runs into millions of rupees each
year.
It has been estimated that since 2002, the
state has lost a staggering Rs.389 billion due to non-collection
of taxes in the form of Excise, Customs, Income Tax and other Government
taxes.
In a special report submitted to Parliament
the Attorney General recently said matters relating to confiscated
goods and tax revenue could be decided by such courts to avoid delays.
The audit report said test checks on losses
resulting from the delay in conducting auction sales until the finalization
of court cases on goods that have been confiscated has resulted
in losses in revenue amounting to over Rs.18.8 million in the past
four years.
It said that long legal delays due to the
non-availability of special courts and the absence of safe and secure
custody for the goods during the interim period, the value of the
seized goods diminish very fast as well.
The report also said the Government loses
huge amounts as revenue due to the destruction of goods, diminution
in value and loss of goods resulting from the retention of confiscated
goods including motor vehicles in open areas within the port premises
for long periods. Meanwhile there are 255 court cases pending up
to December last year for the recovery of arrears of duties amounting
to Rs 102.3 million. Of these 17 cases are being heard while 19
have been put aside by the Courts.
Warrants have been issued in respect of
58 cases and in respect of 139 cases addresses cannot be traced.
Motions have been submitted in respect of 22 cases.
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