Thursday Nov 28, 2024
Thursday Nov 28, 2024
Thursday, 1 December 2022 00:27 - - {{hitsCtrl.values.hits}}
Troubled IT system at the Inland Revenue Department (IRD) caused frustration among tax payers yesterday which was the last day for filing returns for the financial year ended 31 March 2022.
Private sector sources told the Daily FT there were difficulties in logging into the IRD’s Revenue Administration and Management Information System (RAMIS) hence many couldn’t file their tax returns for FY 21/22 on the final day which was yesterday.
Verbal complaints to IRD saw officials reprimanding tax payers that they had enough time prior and could have done so rather than waiting for the final day. However, tax payers countered this view saying the RAMIS should be robust enough to entertain filings on the last day too.
RAMIS has come under criticism in recent months due to various issues. In fact, President and Finance Minister Ranil Wickremesinghe in his 2023 Budget speech admitted the issues and said “Steps will be taken to review and address deficiencies in the RAMIS system at the Inland Revenue Department”.
When IRD was discussed by the Parliamentary Committee on Public Accounts (COPA) on Tuesday, a host of issues was highlighted.
It was pointed out that the target of a 69% increase in tax income in 2023 would not be achievable due to the malfunctioning of the RAMIS system that was built, spending a gigantic sum of Rs. 10 billion.
Furthermore, the Auditor General noted that despite giving instructions at several committee meetings to repair the RAMIS system, the Inland Revenue Department has failed to do that.
Therefore, COPA instructed the department officials to provide a report within one month on how to repair the RAMIS system and make it operational.
During the meeting, the Auditor General pointed out that the IRD is refusing to give him necessary details with regard to the agreement on the RAMIS system and it is a violation of the Constitution.
As of 30 June 2022, the IRD had a total Rs. 773 billion in tax dues, fines and interest. Out of that, Rs. 201 billion could be earned without any legal obstacle while earning Rs. 572 billion has been halted owing to several reasons. The Auditor General has recognised this sum as the due income that should be charged under both RAMIS and Legacy systems.
When queried as to why the Rs. 201 billion has not been collected as yet, the Department officials said the sum is being charged in instalments. COPA Chairman Kabir Hashim then instructed the officials to present a report, on how they expect to charge this sum, to the committee soon.
