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by Ranga Jayasuriya

The tax fraud at the Inland Revenue Department could run into around 24 billion rupees, CID investigations reveal.

Inspector General of Police Chandra Fernando said though initial investigations reveal the amount to be 3.57 billion rupees, sleuths would also trace the where-abouts of a total of 24 billion rupees which was paid as VAT repayment.

The IGP also said the CID was investigating to locate the money and also whether the money had been invested on any property or business ventures. The main suspect, Kamil Kuthubdeen, who is absconding, is reported to have fled the country.

Kamil Kuthubdeen is the chairman of the BOI approved K-Port Development Project, which is a private sector venture, set up for specific operations in handling, storing and delivery of cargo of international trade.

The company website www.kport.lk has a mug shot of Kuthubdeen, who designates himself as the chairman of the K Port signing an agreement with former BOI chairman Saliya Wickremesuriya. IGP Fernando however declined to comment whether the K Port project was now under investigation.

The Inland Revenue Department and the Department of Registration of Persons have already come under scrutiny by the CID. The IGP also did not rule out the possibility of the Board of Investment and Customs which may also come under CID investigations.

Colombo Fort Magistrate and Additional District Judge Namal Balalle last week further remanded five suspects in the VAT scam till April 19.

They were Gnanasiri Soysa Jayatilleke, a former senior officer of the VAT Division of the Inland Revenue Department, Colombo businessman Sinnaiah Subramaniam, Mohamed Hussain Mohamed Milshan, Ambepitiya of the Inland Revenue Department and a leading Cinnamon Garden businessman Ashrof Hadjar. The multi-billion VAT fraud came to light when the CID investigated a complaint by the Inland Revenue Department based on a report submitted to it by the Auditor General in connection with the criminal misappropriation of Rs. 3,573,272,868 accruing from VAT.

Investigations have revealed that the senior officer of the Inland Revenue Department had authorised the release of this amount without perusing the relevant documents. Investigators have also found that the VAT repayment had been issued on forged passports. Out of 20 identity cards submitted to the Inland Revenue Department, 19 were forged, investigators have found.

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