Sunday Sep 08, 2024
Wednesday, 29 May 2024 00:24 - - {{hitsCtrl.values.hits}}
Chief Guest State Minister of Finance Ranjith Siyambalapitiya
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Chartered Institute of Taxation of Sri Lanka President Ranil Abeywardhene
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Chartered Institute of Taxation of Sri Lanka (CITSL) President Ranil Abeywardhene recently requested the Government to legally recognise the profession of “Tax Consultant” to ensure continuous improvement measures to uplift the tax education and the profession of tax consultancy in Sri Lanka.
“In this endeavour our Institute has already taken measures to register the title of “Chartered Tax Consultant” under the Intellectual Property Act,” said Abeywardhene at a ceremony to celebrate the granting of Chartered Status to CITLS on 17 May 2024 at Grand Ballroom, Hotel Galadari. Chief Guest at the ceremony was State Minister of Finance Ranjith Siyambalapitiya whilst Central Bank Governor Dr. P. Nandalal delivered the keynote.
Abeywardhene said obtaining the “Chartered” status empowered the Institute to establish this title. A separate career pathway entangled with a code of ethics will be availed to CITSL members in attaining this prestigious title.
“The legal recognition should empower the “Chartered Tax Consultant” to sign off the return of income certifying that the return has been prepared and scrutinized as per the provisions of the respective Acts and to the best of his ability. We expect that the Ministry of Finance shall support this endeavour to safeguard both the taxpayer and the Government revenue,” CITSL President Abeywardhene.
MP Madura Vithanage and Dr. Sugath Yalegama as well as eminent officials from the Government and representatives of the private sector were present at the ceremony along with Members of the Executive Council and members of the Chartered Institute of Taxation of Sri Lanka.
In his speech, CITSL President Abeywardhene also said the following.
Today we celebrate the day that we have been waiting for so many years since 1992. We enjoy the fruits of success reaped after the arduous efforts made for more than 10 years. This day shall be marked as an unforgettable day in the books of history of our Institute. It is not merely conferring the prestigious “Chartered” status but the recognition of the importance of “Tax Education” in Sri Lanka. All our members who are having the titles of FTII and ATII have been bestowed with FCIT and ACIT. FCIT denotes Fellow Chartered Institute of Taxation where the ACIT denotes Associate Chartered Institute of Taxation. In 1992, the Sri Lanka Institute of Taxation was incorporated under the Companies Act at the inception. However, with undeterred dedication and enthusiasm, the eminent founder members to name a few - Anil Amarasekara, C.P.E. Gunasingham, A.M. Jayasekara, D.C. Jayakuru, M.S.M.T. Samaratunge, Balaratnam, D.D.M. Waidyasekara, this organisation was transformed into an institution incorporated under the Sri Lanka Institute of Taxation (Incorporation) Act No. 21 of 2000.
The current economic crisis is an eye opener to many on the importance of tax education in Sri Lanka. Also, neither Sri Lanka has given its due recognition to Tax Education nor Taxation. With all due respect to the Organisation of Professional Association (OPA), the profession of Taxation has now been recognised as an independent profession. For all these years the taxation was considered as a part of accountancy not being given its due place. Taxation is a mixture of law, accountancy and economics. It is a distinctive art one has to master. The Chartered Institute of Taxation is the only body incorporated by a parliamentary act specialised to disseminate tax knowledge across the country. Tax education shall not only create the profession of “Tax Consultant” but shall make people tax compliant as well.
A Government elected by the people has to have its own revenue to execute the implementation of the planning. Therefore, taxation shall prevail until the countries are governed by governments. A country like Sri Lanka, where the majority are low income earners, high rates of taxes are not conducive to sustain the growth of the economy and the wellbeing of the people. In this context, a country like Sri Lanka needs to establish a tax policy with the tagline “Wider Tax Base and Lower Tax Rates.”
Looking at this graphical illustration it is envisaged that Sri Lanka needs drastic measures to become tax compliant. The widening gap between the growth of GDP and tax revenue is a clear indication that the wealth generated by the economy is not being tapped as tax revenue. The tax buoyancy or the gap visible here has to be narrowed down to capture many into the tax net. To facilitate this process the Government needs to strengthen the infrastructure of the economy. Ensuring physical circulation of money is at minimum, interconnection between the Government and private bodies via virtual networks, maintenance of centralised databases on economic clusters, transparency in utilisation of tax money are some of the salient features of a strong infrastructural system. If this gap is not narrowed down in the future, the genuine taxpayers like the present labour force who are heavily burdened with taxes shall eternally suffer at the cost of non-taxpayers.
The number of tax files at the Department of Inland Revenue are not sufficient enough to cater the needs and wants of the entire 22 million population of Sri Lanka. We should be ashamed as a nation. I hope with the measures implemented to open TINs for people who are above 18 years, the number of tax files would have increased during 2023. However, the unexplored segments in the society are larger than the regular taxpayers. In this context the members of our institute shall have ample opportunities in the future to explore as tax consultants. You might have already experienced the increasing queries on taxation in your profession. Therefore, it is evident that Tax Consultancy shall become a prospective profession than before.
I would like to end with the quote by Albert Bushnell Hart “Taxation is the price, which civilised communities pay for the opportunity of remaining civilised.”
Keynote speaker CBSL Governor Dr. Nandalal Weerasinghe