Several persons either directly or indirectly involved in the Rs. 3.5 billion widely-publicised VAT scam are reported to be happily ensconced in countries like Australia, New Zealand, Singapore, Thailand and Japan - away from the long arm of the law, informed sources said.
In December last year, the report on the inquiry into the alleged fraudulent VAT refund was presented to President Mahinda Rajapaksa but its findings are yet to be made public.
The VAT branch of the Department of Inland Revenue (IRD) has allegedly made unlawful refunds to non-existent companies amounting to Rs.3.5 billion. However Tax Commissioner General Mahinda Medagoda said ‘adequate precautionary measures have been taken to avoid such situations in the future.’
Twelve of the businessmen indicted for fraudulently obtaining VAT refunds had obtained these refunds without carrying out any production, a requirement to obtain such refunds and most of them are now living in foreign countries, IRD sources said.
The chief culprit in this massive VAT scam, Kamil Kuthubdeen is believed to be living in Dubai. Former Inland Revenue Deputy Commissioner Gnanasiri Z. Jayathilake, and Assistant Commissioner A.W. Ambeypitiya are still in prison, the sources said.
The former Commissioner General A.A Wijepala who was alleged to be indirectly involved in the scam is now serving as the Chairman of the National Insurance Trust Fund (Agrahara).
CID detectives are finding it difficult to trace the whereabouts of these suspects and most of their foreign transactions, as these funds may have gone through the money laundering route. A senior official of the CID said Interpol help has been sought to trace the suspects. |
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