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Tax chief to be queried over VAT scam
By Asif Fuard
The CID investigating the multi-billion VAT refund scam has uncovered that some of the VAT refund cheques linked to the fraud had been issued during the time when the current Inland Revenue Commissioner General A.A.Wijepala was the Deputy Commissioner of the VAT refund division.

In the light of new revelations, the CID is to question the Commissioner General of the Inland Revenue Department on transactions that had taken place during his tenure as the Deputy Commissioner of the VAT refund division.
The Sunday Times on March 26 revealed that when Mr. Wijeypala headed the VAT Refund Division he had granted concessions to a company named Multi-Sacks (PVT) Ltd to pay VAT amounting to Rs.80 million — a concession not usually given to defaulters. The payment was to be made on monthly instalments of Rs.500,000 for 160 months without any interest or penalties being added.

The Sunday Times learns that no other VAT offenders were granted such concessions as they collect funds upfront from customers on behalf of the Inland Revenue Department. The company in question has not honoured the repayment scheduled except for a couple of instalments at the beginning.
Meanwhile, Hamza Kuthubdeen who was believed to have been in hiding in his brother Kamil Kuthubdeen’s hotel in Dubai surrendered to the CID early this week.

The CID with the assistance of the International Police Interpol is on a manhunt to arrest the godfather of the Rs. 3.57 billion VAT mafia.

The bank accounts of all the suspects connected to the VAT fraud have been frozen. The CID with the assistance of Interpol is keeping a tab on the credit cards of the suspects who are evading arrest in a bid to trace their hideouts.
The CID had also been trying to trace the mobile phone numbers of the suspects’ contact list to locate the people who had been in touch with the suspects before they fled.

Six suspects arrested in this connection are to be produced again before the Fort Magistrate on Wednesday.

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