Business
‘National solution needed to issue of corruption in tax revenue collection’

By Hiran H.Senewiratne
Sri Lanka needs a national solution to the issue of corruption in the collection of tax revenue. This is a white collar crime that affects the whole of society. Accordingly, the local tax collection process should be streamlined to minimize corruption and increase revenue, Commissioner General, Department of Inland Revenue (D.I.R) D.R.M. Hapuarachchi said.
‘The tax system and administration in developed countries, especially in the Northern European region, normally define their revenue targets on a yearly basis, Hapuarachchi added.
‘This enables developed countries to understand where they stand in relation to tax revenue. Without a target you don’t know where the revenue goes. Therefore developing countries always define tax targets and the tax collection authorities know what the position is with regard to tax revenue at the end of the year, Hapuarachchi said recently at a function where the Institute of Chartered Accountants (CA-Sri Lanka) unveiled freshly revamped Chartered Tax Advisor courses. The event was held at CA-Sri Lanka auditorium.
Hapuarachchi said that in some countries tax authorities try to make risk assessments, while in countries like Australia there is a system called the Compliance Model. The Model is a structured way of understanding and improving client compliance. It helps to understand the factors that influence client behavior, such as that of taxpayers, consultants and all other stakeholders and to enables the authorities to apply the most appropriate compliance strategy.
‘Tax policy should be appropriately forward looking and equitable. But where the tax administration is concerned officers with personal experience, honesty and dedication are necessary to create an efficient and effective tax collection system, the DIR head explained.
President, CA Sri Lanka Sanjaya Bandara said that as a pioneer in tax education, the CA’s School of Taxation has been in the forefront of producing resourceful and skilled tax professionals since the launch of the CTA programme in 2011.
‘Employers often seek individuals who specialize in tax knowledge along with the ability to handle complex tax issues. The CTA qualification can significantly enhance one’s career prospects, he said.