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Uncollected taxes, penalties and interest now amount to Rs 943 bn

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IRD won’t takeover RAMIS for want of qualified personnel

By Shamindra Ferdinando

The Inland Revenue Department (IRD) has told the parliamentary watchdog Committee on Public Accounts (COPA) that it couldn’t fully take over the Revenue Administration Management Information System aka RAMIS for want of sufficient number of qualified personnel.

Top management of the IRD said so when COPA Chairman Lasantha Alagiyawanna (SLPP), during proceedings, asked them whether they could run RAMIS on its own. This is Alagiyawanna’s second stint as COPA Chairman.

According to a press release dated Nov 18 issued by Janakantha Silva, Parliament Director Legislative Services / Director Communication (Acting), the IRD management had declined to operate RAMIS on its own due to the absence of required personnel. The IRD comes under the Finance Ministry.

The shocking claim of being understaffed has been made, just two days after President Ranil Wickremesinghe, in his capacity as the Finance Minister projected a total tax revenue at 4.1 trillion rupees for next year, sharply higher than 2.85 trillion rupees in the current year, with the biggest jump coming from the goods and services tax receipts.

Lawmaker Alagiyawanna, who is also the State transport Minister has called for a comprehensive report on the tax collected under various clarifications, as well as uncollected taxes, penalties and interests, amounting to Rs 943 bn.

The Island yesterday (19) sought an explanation from State Minister Alagiyawanna regarding the failure on the part of successive governments, including the Wickremesinghe-Rajapaksa administration, to streamline revenue collection, particularly against the suspension of the USD 2.9 bn IMF loan package, due to revenue shortfall.

Lawmaker Alagiyawanna acknowledged that the government was struggling with the issue. In spite of spending as much as Rs 17 bn on RAMIS, the system is not fully functional, the COPA Chief said, adding that collection of unpaid taxes remained a daunting task.

According to COPA records, in terms of both RAMIS and Legacy systems, unpaid taxes, penalties and interests as at Dec 31, 2022 amounted to Rs 904 bn. The SLFPer said they hadn’t been able to overcome problems and various issues relating to massive arrears in tax payments though many discussions took place over the years. As at June 30, 2022, the total amount of arrears in taxes, penalties, and interest amounted to Rs. 773 bn.

Responding to another query, the State Minister said that the government was yet to make a permanent appointment for the post of Commissioner General, IRD. The post fell vacant over three months ago. D.U.A. Jayawardhana currently serves as Commissioner General, in an acting capacity.

Auditor General W.P.C. Wickremeratne has complained to COPA that the IRD continuously refused to divulge contractual information as per the terms and conditions of the agreement with the Singaporean company, NCS, a subsidiary of Singapore’s Singtel. Wickremeratne has questioned the rationale in the IRD’s refusal, claiming that the agreement is technically between the two governments.

State Minister Alagiyawanne said that the arrears in uncollected taxes, penalties and interests continued to grow rapidly over the years as successive governments struggled to cope up with the revenue collection system, comprising IRD, Customs and Excise.

Former Minister and ex-Chairman COPE Dew Gunasekera told The Island that the government should immediately take tangible measures to streamline revenue collection. The former Communist Party Chief and former IRD officer emphasized that the government’s goal should be to gradually bring down the total amount of arrears in taxes, penalties and interest. A cohesive action plan is required to address this issue, the ex-lawmaker said, calling for an all-party consensus on this matter as the economy was in dire straits.



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Prison rules to be revised over monks’ attire

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Harshana

Appointment of committee eyewash, says UNP

The government is considering changes to prison regulations pertaining to the treatment of Buddhist monks serving jail terms, including their right to wear monastic robes when taken outside prison.

Justice and National Integration Minister Harshana Nanayakkara announced the proposed changes yesterday (14) following the submission of an interim report by a committee appointed to review the rules and procedures governing prisons.

The report was handed over to Secretary to the President Dr Nandika Sanath Kumanayake at the Presidential Secretariat.

One of the key recommendations is to amend Prison Standing Order 356 by introducing a new provision, 356(A). The proposed revision would require prison authorities to consult the Department of Buddhist Affairs on the removal of a monk’s robes upon admission to prison. The Commissioner of Prisons would be allowed 10 days to notify the department and take the necessary steps.

A separate amendment to Departmental Order 550 would allow Buddhist monks to wear their robes whenever they are taken outside prison, unless their respective Nikaya formally requests that the privilege be withdrawn.

The committee has also recommended extending similar arrangements, with suitable modifications, to members of other religious clergy who are imprisoned.

The proposals follow concerns raised over the treatment of Ven. Galagoda Aththe Gnanasara Thera after he was taken into custody. President Anura Kumara Dissanayake subsequently held discussions with representatives of the three main Buddhist Nikayas and appointed the committee to examine the existing legal framework.

Nanayakkara said the interim report had been forwarded to the Acting Commissioner General of Prisons, along with instructions to revise the relevant standing orders in accordance with its recommendations.

The proposed amendments have yet to be confirmed as formally implemented.

Meanwhile, the UNP yesterday criticised the government’s decision to appoint a committee to make recommendations on the attire to be worn by imprisoned Buddhist monks and other religious leaders when taken outside prison, describing the move as unnecessary.

In a statement issued yesterday (14), the UNP said the procedures governing the matter were already clearly set out in the Department of Prisons’ Standing Orders, making the appointment of a separate committee unwarranted.

The party cited remarks by Professor G.L. Peiris, Convenor of the Janathawadi Joint Opposition, who had described the committee’s appointment as a

“complete eyewash” and questioned the need for such a move.

Referring to Standing Order 550 of the Prisons Department, the UNP said convicted prisoners appearing before court for legal proceedings should not be required to wear prison uniforms.

It further stated that the regulations allowed prisoners to wear civilian clothing consistent with what they wore before imprisonment, including attire appropriate to their cultural and religious backgrounds.

The UNP accused the government of unnecessarily prolonging the issue by appointing a committee, despite the existence of regulations governing prisoners’ attire.

The party also called on the government to seek forgiveness from the Mahanayake Thera and the Sangha Council of the Kotte Sri Kalyani Samagri Dharma Maha Sangha Sabha of the Siyam Maha Nikaya over the decision concerning the religious attire of Ven. Galagoda Aththe Gnanasara Thera.

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AC President recuses himself from hearing prison attire case pertaining to Gnanasara Thera

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Court of Appeal President Justice Rohantha Abeysuriya yesterday withdrew from the bench hearing petitions challenging the decision by prison authorities to require Ven. Galagoda Aththe Gnanasara Thera to wear prison attire following his imprisonment.

The decision was announced when the petitions seeking to invalidate the prison authorities’ decision were taken up for consideration on October 14.

Following his withdrawal, a three-judge bench was appointed to hear the petitions.

The petitions relate to the prison authorities’ decision to require Gnanasara Thera to wear prison attire after he was taken into custody to serve the remainder of his sentence for contempt of court.

In September this year, the Supreme Court annulled the presidential pardon granted to Gnanasara Thera by former President Maithripala Sirisena in May 2019.

Following the ruling, the Court of Appeal directed the Commissioner General of Prisons to take the necessary steps to enforce the remainder of the monk’s prison sentence.

Gnanasara Thera had originally been sentenced to six years’ imprisonment for contempt of court but had served only around nine months before receiving the presidential pardon in 2019.

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Court orders steps to obtain INTERPOL Red Notice against Basil

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Basil

The Fort Magistrate’s Court yesterday issued an arrest warrant for former Minister Basil Rajapaksa over the alleged misuse of funds belonging to the Sri Lanka Tourism Promotion Bureau during the 2014 Uva Provincial Council election.

The Magistrate also directed the CID Illegal Assets Investigation Division to take necessary steps to obtain a Red Notice through Interpol.

The orders were issued following submissions made by the CID in connection with the alleged financial irregularities.

The CID’s Illegal Assets Investigation Unit informed the court that Rs. 7.8 million allocated to the Sri Lanka Tourism Promotion Bureau in 2014 had allegedly not been used for the Bureau’s promotional activities.

Instead, the funds had allegedly been used to provide 12,000 T-shirts during the Uva Provincial Council election, causing a financial loss to the government, the CID told court.

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