COPA recommends tax declaration from all citizens

2 February 2017 09:28 am - 15 - {{hitsCtrl.values.hits}}

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The ‘Committee On Public Accounts (COPA), in its 2016 report proposes that there should be a mechanism to receive a declaration from every adult of the country to evaluate whether a personal income tax file should be opened or not in the light of the number of current personal income tax files of 1,35,170 and 13,169 of NGOs, Mutual Funds etc. may not reflect the actual state revenue situation.

Therefore, the interim report of the Parliamentary Oversight Committee recommends that there should be a mechanism to receive a declaration from each and every adult of the country to evaluate whether a personal income tax file should be opened or not.

If this is a difficult process to implement, the Committee felt that the Inland Revenue Department (IRD) should at least share the data with the Department of Motor Traffic (DMT) since it was reported that there are over 6 million vehicles registered at present as there are no legal barriers to share the information with the Registrar of Motor Vehicles (RMV).

The newest COPA report that contains data of audit inquiries and accounts of all public institutions and semi government institution in 2015 and the first half of 2016 has been tabled in Parliament by the Chairman of the COPA, Deputy Minister of Megapolis and Western Development Lasantha Alagiyawanna.

With regard to the direct collection of VAT and NBT by IRD, the Committee notes that, in respect of commodities (goods), there is no proper nomenclature and classification system such as Harmonized System adopted by Customs and there is no proper valuation system such as World Trade Organization (WTO) Valuation System adopted by all over the world.

In the absence of such systems for commodity taxation, the Committee felt that it would lead to corrupt practices leading to loss of due revenue.

It was also reported that the number of VAT registered persons are 15,696 and VAT registered financial Institutions are 229. The Committee felt that these numbers may not reflect the actual situation. The Sub Committee therefore felt that the IRD should develop a suitable mechanism to recover the due VAT revenue to the government.

With regard to the Cooperate taxes also, the Committee felt that the current number of corporate tax files 47,154 may not reflect the actual position. The IRD should look into this by sharing information with the Department of Registration of Companies.

The Committee noted that the audit procedure of Declarations and Tax Files and investigation procedures should be looked into carefully to minimize revenue leakages by optimum use of appropriate available human resources, ICT and other resources.

At present IRD is in the process of implementing Revenue Administration Management Information System (RAMIS) with the assistance of Singapore Government. This project has started in July 2014 and the first phase would be completed in Sep. 2016 and the second phase to be completed by December 2016. (Sandun A Jayasekera)

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Comments - 15

Sri Lankan Thursday, 02 February 2017 09:54 AM

lets start from politicians

raj Thursday, 02 February 2017 10:08 AM

Why you want to make us pay taxes..to give more luxury for the MPs. ..free health care is a sham cos we have to pay for the medicine surgical supplies and so many other stuff they bill us at state hospitals the police are incompetent free education is abused to the maximum we pay for water and electricity..The roads are been done by the Chinese even for garbage collection if you don't monthly give them something they won't come near the house...We pay to get NIC passport driving license..postal..bus... train...everything we pay now....so tell me again why do you need more tax is it to give more luxury to the MPs and state sector?

Banda Thursday, 02 February 2017 12:54 PM

Your reasonning is valid. You have to fight and get rid of corruption. I live in Sweden and all pay lots of taxes. But you get it back in form of social security. Good medical care, Education etc.But for this people must be eliminated from the society.

ravin Thursday, 02 February 2017 01:26 PM

this must be begin with all politicians. IT must make compulsory for any party/organisation/individual to have tax file before do politics. It is implemented in other democratic nations. Lets up hold our franchise. Whole country will be out of debit with in short period of time.

Great move Thursday, 02 February 2017 01:27 PM

This is great. Good idea. Long overdue. Every Citizen who is above 18 should have Tax file no. Have a 5 year business plan and implement it. Get rid of freebees to Politicians. Lower the VAT and pass this to poor. Have a progressive Tax system so wealthy will pay more tax on income. Eliminate Corruption in IRD and pay market based salary to the tax collectors. Stop people entering the Tax office and making deals with Assessors. Only Authorised people such as Chartered accountants , Tax advisors should have access to the assesors. Make people to use electronic transactions and all the money should go throgh financial institutions. This will help the tax office to track the peoples income and expenditure. This will make Srilankans par with western nations. Foreign Direct Investment will flow in once we have proper tax system. More employment and improvement in standard of living. We Sri lankans should change our mind set for well being generation.

Killa Thursday, 02 February 2017 01:57 PM

If you pay your taxes the its alright. you have to pay more taxes becuase some ppl evade them

Premalal Thursday, 02 February 2017 02:00 PM

About 10% of the SriLankan population is believed to hold 80% of the national wealth. The recommendations of COPA, if implimeted is going to produce a load of garbage and good trees would be cut to print them.

John Thursday, 02 February 2017 02:09 PM

Lets play Tik Tak Too . Tax Tax Tax . For private citizens Free Free Free for government citizens via DM Android App

zuh Thursday, 02 February 2017 03:45 PM

to give more luxury to the utter useless politicians via DM iOS App

Ajith Thursday, 02 February 2017 05:24 PM

This is a must if Sri Lanka need to be developed country with out black economy

Bala Thursday, 02 February 2017 05:38 PM

Another important link to IRD is the Registrar of Lands and Property. They should co-ordinate transactions. The Registrar of Companies should release company details, directors and shareholders with value in excess of 1 million Rs. to IRD.

Kadiya Thursday, 02 February 2017 08:15 PM

If this is to net politicians and state officials who do not pay a cent tax, I am for it!

Soma Friday, 03 February 2017 07:36 AM

The COPA doesn't seem to know that ROC will not register a company without a tax file? What more can you expect

Palmyrah Friday, 03 February 2017 07:56 AM

Excellent idea. Paying taxes increases the citizen's sense of ownership of, and participation in, society. Taxpayers are more strongly inclined to hold politicians to account -- recipients of state charity, on the other hand, are sharers in corruption and have no incentive to seek change in the system.

Ralph Friday, 03 February 2017 11:08 AM

The problem is that all these decisions are made by politicians who exempt themselves from the process during implementation.

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COPA recommends tax declaration from all citizens

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