"If we open tax files, there'll be more problems ...
you yourself have to come forward before that" -- Inland Revenue Commissioner
The statement made by Inland Revenue Commissioner Mr. Ivan Dissanayaka recently that it has been found that every person who maintains a vehicle and every person who travels overseas on a holiday is someone who has been identified as a person who has an income and is liable to pay tax has given rise to an uproar.
This particular statement was made by him last 5th at a workshop held in Dalawella, Galle. There stillwas a serious part of his speech which is, "before we open tax files, you have to do so". Following is the text of his speech in full:
"Rs. 5 lakhs means something less than Rs. 50,000. It is not possible to pump petrol, license it, maintain it and pay its insurance. Therefore, everyone who maintains a vehicle is someone who has an income where he could pay tax. In the same way, some people go overseas for every holiday. We view them as liable to pay tax. We invite all these people to come and open up a tax file and pay tax. If that does not happen ... in a few more days they would in a few more days inevitably get connected to us. The Inland Revenue Department has already been connected to 32 institutions. Across those documents we could easily identify all their particulars. According to details extracted from those institutions if we were to open up a tax file, we will have to inquire as to how they had acquired their assets. Therefore, before we come and open up a file, I would make a request for you to come and open up a file and to maintain it. We approximately have 16 tax files. Our hope is to increase another 10 lakhs by 2020.