Several doctors, lawyers, engineers, private
tuition masters and people paying telephone bills upto Rs.10,000
per month are alleged to have evaded paying income tax. Action
will be taken to recover the due taxes in accordance with the
Inland Revenue Act, Inland Revenue Commissioner General A. A.
Wijapala told The Island.
Wijapala said that he had already formulated an
effective plan to catch tax and value added tax (VAT) defaulters
who had been defrauding the Inland Revenue Department. He added
that of the 19.2 million population only 300,000 people had been
paying income tax. He said around 17,800 luxury vehicle owners,
registered in the RMV in 2005, were also found to be tax
He pointed out that the departmentís strategy
would be to catch the dodgers in order to augment revenue to the
department within next three years. He said that he had prepared
a project aimed at collecting Rs.176 billion from VAT, Rs.75
billion from income tax, Rs.6 billion from debit and Rs.3.7
billion from stamp duties.
Referring to the VAT refund, Wijapala said that
action had been taken to set up an audit procedure and all
cheques payable to relevant individuals would be posted and no
cheque would be hand delivered. He also noted that due to lack
of feedback from customers a plethora of problems regarding VAT
refund had arisen and added that it had been solved as Inland
Revenue was linked with Customs Department.
Referring to the vacancies in the department,
Wijapala said that action had also been taken to fill existing
vacancies before July 2006 as the department had been
functioning without 539 assessors and 544 tax officers.
He said divisional inland revenue offices, which
would register and open files for new tax and VAT payers would
also be increased within the next three years in order to accrue
more revenue to the department.
The tax Chief revealed that Inland Revenue had
been keeping an eye on people travelling to China, Indonesia,
Thailand and Singapore on business trips had also been evading
paying income tax. He added that arrangements were being made to
obtain information on their business activities.