From TIN to (trash) bin

Wednesday, 10 January 2024 00:00 - - {{hitsCtrl.values.hits}}

According to today’s newspapers, it is mandatory for those who are 18 years and above as of 1 January 2024 to obtain a Taxpayer Identification Number (TIN) by visiting the Inland Revenue Department (IRD) in person or online. Otherwise, he or she will be liable to a fine not exceeding Rs. 50,000. This modus operandi according to M.N.N. Mifly, retired Deputy Commissioner General (DCG) of IRD, is untenable, illogical and impractical and moreover ultra vires of the relevant IRD Act. I do agree with the ex-Commissioner’s opinion and wish to make a few more observations.

With regard to the above being ultra vires, I am of the opinion that our President is supra-capable to overcome any legal impediment either by revising or bringing the required amendments to the existing IRD Act to make it intra vires and thus give effect to the above senseless proposal.

Let me add that most of the TIN will have to be sent to the computer trash bin because those liable will be relatively few and a significant majority of the applicants will not be liable in the present scenario being well below the liable threshold. Of what use is allocating TIN for the beggars, the Aswesuma recipients, the poor, the unemployed and those skipping the meals, reducing the meal size and some adults restricting their meals to feed their children? Is the Government unaware that according to the LIRNEasia survey done in mid-June last year there was a surge in the poverty to 31% of the population and the Department of Census and Statics has found as many as 60.5% households’ monthly income has got slashed whilst 91% of households have experienced an increase in their monthly expenditure levels. Therefore, it’s a waste of people’s time and energy including that of the IRD staff to get all and sundry to register for TIN.

I would suggest a more practical approach would be to elicit this information from KYCs via banks and other suitable methods. Instead of imposing the above penalty for not getting the TIN, why not impose a similar penalty or rather more if the person liable has not registered with the IRD.

“Ops IRD” is going to increase the prison intake. What if all those not liable for tax avoid registering for TIN? This will be worse than “Yukthiya Ops” which has already roped in the “kudukarayaas” and dealers thus overcrowding the prisons.

If the Government is not just bullying but really serious, I think the Government if it is going to take legal action, then it has to put up more new prisons to incarcerate those not registering for the TIN and cannot afford to pay the fine of Rs. 50,000 being poor!

It will become a burden for the Government because it has to then find the funds to meet the expenses of the inmates of the prisons!

Mohamed Zahran

Colombo