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Rs. 773 bn arrears: Go after massive tax dodgers before imposing new taxes – GMOA

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=AG alleges Inland Revenue withheld info citing Constitution

By Shamindra Ferdinando

The Government Medical Officers Association (GMOA) yesterday (02) asked the government to explain its continuing failure to recover as much as Rs 773 bn in taxes, penalties and interest against the backdrop of unprecedented new tax hikes to bridge the record deficit.

GMOA Secretary Dr. Haritha Aluthge told The Island that the disclosure made by the Committee on Public Accounts (COPA) on Nov 28 exposed the overall effect ofthe failure byparliament to meet its obligations pertaining to public finance.

The government should have gone flat out to recover taxes, penalties and interests owed by various entities before new revenue generation measures were proposed, Dr. Aluthge said, demanding that the government to come clean on the issue.Responding to another query, Dr. Aluthge said

that what transpired at COPA meeting chaired bySamagi Jana Balvegaya(SJB) MP Kabir Hashim on Nov 28 exposed how successive governments conveniently allowed the situation to deteriorate. Former Minister Hashim succeeded Prof. Tissa Vitharana in the wake of the re-opening of parliament followingitslast prorogation.

The COPA disclosure was nothing but an indictment on the government, Dr. Aluthge said, urging the Finance Ministry and other relevant institutions to address the issue at hand. Why the entire population should suffer due to utterly corrupt and incompetent lot neglecting their responsibilities?Dr. Aluthge asked.

Referring to the statement issued by the Director Legislative Services on Nov 29 consequent to COPA meeting on the previous day, Dr. Aluthge pointed out that the Inland Revenue Department had been summoned by the parliamentary watchdog committee to examine whether COPA recommendations given on March 24, 2021 were implemented.

The top GMOA official said that he was quite baffled that theburningissue hadn’t been given priority in spite of the financial crisis that caused an unparalleled explosion of public anger.

COPA meeting that had been chaired by MP Hashim were attended by State Ministers Mohan PriyadarshanadeSilva, Lasantha Alagiyawanna, Kader Mastan, (Dr.) Suren Raghavan and Diana Gamage as well as MPs Tissa Attanayake, Ashok Abeysinghe, Dr. Sudarshini Fernandopulle, Major Pradeep Undugoda and Weerasumana Weerasinghe.

Dr. Aluthge said that according to figures released by COPA, the total arrears as at June 30, 2022 amounted to a staggering Rs 773,957,856,618 inunpaidtaxes, penalties and interests. The GMOA official pointed outthatCOPA had acknowledged that out of that amount Rs 201,400,855,198 could be collected as there was no legal impediment whereas the recovery of the remaining Rs 572,557,001,420 was on hold temporarily due to various reasons.

Referring to COPA proceedings, Dr. Aluthge said that the Auditor General had quite clearly asserted that the total amount due to the Inland Revenue was Rs 773,957,856,618 in terms of RAMIS (Revenue Administration Management Information System) and Legacy Systems.How could a bankrupt government be so irresponsible?Dr. Aluthge asked.

The GMOA Secretary also faulted the media for not providing sufficient coverage to the issues dealt by parliamentary watchdog committees. The waste, corruption, irregularities and mismanagement that had been exposed by these watchdog committees over the years proved over and over again the parliament was responsible for the current unprecedented crisis, Dr. Aluthge said.

The shocking disclosure made by the Auditor General that the RAMIS system installed at a staggering cost of over Rs 10 bn to ensure smooth collection of revenue was yet to be fully and properly operational painted a bleak picture, Dr. Aluthge said.

Referring to COPA proceedings again, Dr. Aluthge said that the Auditor General was on record as having said that though deficiencies of RAMIS system had been brought to the notice of COPA on several occasions remedial measures were not taken.

“The parliament owed the public an explanation. The parliament cannot absolve itself of the pathetic and reckless handling of public finance that finally led to Sri Lanka tagged as a bankrupt country,” Dr. Aluthge said.

Dr. Aluthge said that the GMOA sincerely believed the parliament would at least now hear what the Auditor General told COPA of his efforts to get to the bottom of RAMIS installation.

Janakantha Silva, Director Legislative Services and Acting Director Communication in a statement that dealt with COPA meeting chaired by MP Hashim quoted the Auditor General as having said that the Inland Revenue Department declined to release the RAMIS agreement and related payments, the agreement barred the Inland Revenue from releasing the information sought by him. The Auditor General has further alleged that the Inland Revenue Department withheld information pertaining to the RAMIS agreement claiming the release of the agreement violated the Constitution.

How could the Auditor General be deprived of an agreement entered into by the Inland Revenue on behalf of the government? Dr. Aluthge asked.COPA Chairman Hashim has declared that an audit would be conducted on the RAMIS deal if the report sought from the Inland Revenue within a month in respect of the same was not satisfactory.

Dr. Aluthge said that he couldn’t believe that action hadn’t been taken in respect of 4,831 return checks worth Rs 2,488,003,615 (2.4 billion) received by Inland Revenue as at June 30. According to COPA 3,817 of these returned cheques worth Rs. 1,429,356,750 rupees were more than 3 years old. The Inland Revenue has said that the department lacked the authority to take legal action.

Pointing out that COPA Chairman has advised Inland Revenue to inform him of the action in this regard in consultation with the Attorney General , Dr. Aluthge said if the parliament bothered to inquire into what was happening in the revenue collection set up the current crisis could be easily explained.

Dr. Aluthge recalled comprehensive tax proposals submitted by Prof. W.D. Lakshman during President Mahinda Rajapaksa’s second term were never implemented. In fact, the library of the parliament didn’t have a copy of it, Dr. Aluthge alleged, urging the parliament to address the issues at hand without further delay or prepare to face the consequences.



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Death threats won’t deter us – EC Chairman

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Nimal Punchihewa (Chairman ECSL) picture by PRIYAN DE SILVA
Chairman of the Election Commission of Sri Lanka Nimal Punchihewa told The Island that members of  the election commission won’t be deterred by death threats.
He said that members of the commission  M M Mohamed,  K P P Pathirana and S B Diwarathne have been repeatedly threatened and the police have not been able to apprehend the perpetrators.
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Three people dead after torrential rain in New Zealand

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At least three people have died due to flash flodding in Auckland (picture BBC)

BBC reported that at least three people have died and one is missing after New Zealand’s largest city experienced its “wettest day on record” on Friday.

Auckland is said to have received 75% of its usual summer rainfall in just 15 hours.

A local state of emergency was declared as authorities managed evacuations and widespread flooding.

New Zealand’s Prime Minister Chris Hipkins thanked emergency services for their swift response to the disaster.The new prime minister travelled to Auckland, where he also expressed his condolences to the loved ones of those who died in the floods.

“The loss of life underscores the sheer scale of this weather event and how quickly it turned tragic”, he said in a news conference on Saturday afternoon.

The downpour flooded the airport, shifted houses and resulted in power cuts to homes for hours.

New Zealand’s defence forces were mobilised to assist with evacuations and emergency shelters were set up across the city.

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Parliament prorogued on Friday night

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President says cabinet agreeable to fully implementing 13 A until party leaders decide whether or not to abolish the Amendment

Parliament was prorogued from midnight Friday (27) by President Ranil Wickremesinghe under powers vested in him by Article 70 of the Constitution, parliamentary sources said on Friday.

The Department of Government Printing was due to issue the relevant notification on Friday night but it was not out as this edition went to print.However the President’ Media Division (PMD) confirmed the prorogation on Friday evening saying that President Wickremesinghe “is expected” to make a policy statement based on the decisions taken after the 75th Independence anniversary when parliament recommences on Feb.8.

A separate bulletin said that the president had informed the party leaders Conference on Reconciliation that the cabinet was agreeable to “fully implementing (the) 13th Amendment until party leaders decide whether or not to abolish the Amendment.”

Parliamentary sources explained that a prorogation which is a temporary recess of parliament, should not extend to a period of more than two months, However, such date for summoning parliament may be advanced by another presidential proclamation provided it is summoned for a date not less than three days from the date of such fresh proclamation.

Political observers believe that the prorogation is related to the president’s effort to secure as wide a consensus as possible on the National Question. They dismissed speculation that it is related to the scheduled local elections. This issue was clarified by the PMD bulletin.

When parliament is prorogued, the proclamation should notify the date of the commencement of the new session of parliament under Article 70 of the Constitution.During the prorogation the speaker continues to function and MPs retain their membership of the legislature even though they do not attend meetings of the House.

The effect of a prorogation is to suspend all current business before the House and all proceedings pending at the time are quashed except impeachments.A Bill, motion or question of the same substance cannot be introduced for a second time during the same session. However, it could be carried forward at a subsequent session after a prorogation.

“All matters which having been duly brought before parliament, have not been disposed of at the time of the prorogation, may be proceeded with during the next session,” states the paragraph (4) of article 70 of the constitution.

In the light of this constitutional provision, a prorogation does not result in an end to pending business. Thus, a pending matter may be proceeded with from that stage onwards after the commencement of the new session.

At the beginning of a new session all items of business which were in the order paper need to be re-listed, if it is desired to continue with them.At the end of a prorogation a new session begins and is ceremonially declared open by the president.

He is empowered under the constitution to make a statement of government policy at the commencement of each session of parliament and to preside at ceremonial sittings of parliament in terms of the provisions of paragraph (2) of article 33 of the constitution.The president is empowered to make a statement of government policy at the commencement of each new session. In the past, it was known as the Throne Speech which was delivered by the Governor-General.

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