Sri Lanka tax authorities deprived of Rs 3 billion due to dishonoured cheques

December 1, 2020 at 4:55 PM

Dishonoured cheques have resulted in the Sri Lanka tax authority being deprived of revenue worth more than Rs. 3 billion, the National Audit office said.

According to News First, the Auditor General’s report has revealed that the Inland Revenue Department (IRD) has received 8060 dishonoured cheques in June 2019 in comparison to 4494 recorded in 2015.

Taxpayers remit funds to the IRD’s Revenue Collection Account, and once the details on the payments made by taxpayers are furnished by banks, the tax files are updated.

The Auditor General’s report said however, the internal control systems of the IRD to implement measures on their settlement and regarding follow up actions were not properly implemented.

This has resulted in the Government suffering a loss of Rs 2.03 billion in Value Added tax, Rs 427.8 million in Nation Building Tax, and Income Taxes worth Rs 317.8 million.

The Auditor General’s Department has recommended adopting methods such as bank drafts and other technical methods to collect money in addition to cheques, suspension of bank accounts, properties of tax payers, and initiate court action against dishonoured cheques exceeding Rs 500,000. (NewsWire)