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| Sunday, 03 August 2003 |
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Union blames IRD management deficiencies by Elmo Leonard A powerful union of the Inland Revenue Department (IRD) has identified poor utilisation of human resources, incorrect recruitment, lack of performance evaluation, poor use of IT and poorer collection of default tax, as the reason for the Rs 20 billion shortfall in VAT dues. The independent Inland Revenue Service Union, members of which comprise 55 percent of the Department's staff claimed if the deficiencies were corrected, the IRD, could have collected not only Rs 20 billion in VAT, but also a further Rs 20 billion in taxes. Union leaders said that they had handed over a report to the Ministry of Finance in December 2001, pointing out many shortcomings in the Dept. The assessors and tax officers are qualified graduates, the union leaders said. Those who score more marks are appointed as assessors and the others as tax officers. However, they alleged that the tax officers work under the assessors and carry out clerical work. They also alleged that although each assessor was given 1,200 files per year, only 500 were examined and that the rest of the files remain, unopened. They pointed out that nearly every businessman conceals taxes due to be paid and 97 per cent of the files examined could be borne to include Rs 400,000 to Rs 500,000 in concealed taxes. "From files examined, in six months Rs 6.5 billion could be collected and Rs 20 billion could be collected from files scrutinised within a year," they said. Among the 650 tax officers who have to do clerical work are chartered accountants and CIMA qualified persons, postgraduate diploma holders and qualified in business administration. If the tax officers are allowed to collect taxes, they could find the money due, and much more, with no added cost to government, union leaders pointed out. |
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