Sri Lanka’s Inland Revenue (Tax) Department has achieved 99% of the revenue target of Rs. 307 billion set for this year while the 2012 target of Rs.400 billion would be met through the reduction of compliance costs and the enhancement of efficiency and productivity that would result from automated revenue collection and compliance, monitoring and enforcement.
 |
| Malani Samarasekera |
Making these comments in an interview with the Business Times on Wednesday, newly-appointed Commissioner General of Inland Revenue Malani Samarasekera said that the post tax audit of the department will be further strengthened to crack down on tax evaders as it is essential to maintain the confidence of genuine taxpayers.
However she noted that the number of tax defaulters is minimal compared to 770,812 taxpayers countrywide. “Tax administration will become smoother in the New Year,” she promised, adding that she is confident of streamlining the tax administration process like the way she has handled the VAT department, tainted by a multi-billion rupee tax scam in 2006.
In a smooth transition at the helm of the Tax Department, Ms. Samarasekara assumed duties on Tuesday as the new Commissioner General of Inland Revenue, following the retirement of K.M.S. Kandegedara who was head since 2010.
Ms. Samarasekera is the second female Commissioner General of the department since its inception in 1932, and the most senior tax official in the island with 33 years experience. She started her career as a tax assessor.
The department is being automated to introduce a new Revenue Management Information System with the assistance of the Asian Development Bank to be completed in 2013. The ADB will help strengthen public finances in Sri Lanka, through an assistance package totalling US$70 million. Servers have been installed in Kurunegala and Jawatte IRD branches. Ms. Samarasekera said that she will take all necessary steps to simplify the tax regime and to reduce documentation. “With the recent tax reforms we were able to simplify the tax structure and all incentives are now incorporated into one scheme,” she said, noting that her goal is to simplify the paper work limiting tax return to a single page.
Measures will be taken to create awareness on the need to pay taxes and tax laws among the public including small and medium businessmen by conducting ‘tax weeks’ countrywide, she said.
These ‘tax weeks’ will be organized following the model of the mobile service where the tax officers will directly contact the people and enlighten them on the importance of paying taxes and its incentives distributing leaflets with all details.
She disclosed that she undertook the challenge of streamlining the VAT Department, especially the VAT refund section in 2007 and has been able to normalize operations with the support of additional staff. VAT refund claims have been reduced to 2,000 from 20,000 in 2009, she said.
The department, in a bid to streamline the VAT administration process, is to discontinue the files of 1725 VAT payers (companies) who failed to furnish monthly or quarterly returns and those who have not made claims for refunds amounting to several millions of rupees over a considerable period. There are many procedures that need to be followed when making these payments.
The biggest reason for most of the claims to be delayed is because most companies don’t know how to do the necessary paperwork. Lack of proper accounting is also an issue. “Of the remaining 2,000 claims, we have begun auditing several companies to ensure that the payments are made to the right companies,” she said. |
E-mail
