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Special courts for revenue cases

By Chandani Kirinde

The Auditor General has recommended the establishment of specialised courts for tax and customs matters to minimise loss of Government tax revenue which runs into millions of rupees each year.

It has been estimated that since 2002, the state has lost a staggering Rs.389 billion due to non-collection of taxes in the form of Excise, Customs, Income Tax and other Government taxes.

In a special report submitted to Parliament the Attorney General recently said matters relating to confiscated goods and tax revenue could be decided by such courts to avoid delays.

The audit report said test checks on losses resulting from the delay in conducting auction sales until the finalization of court cases on goods that have been confiscated has resulted in losses in revenue amounting to over Rs.18.8 million in the past four years.

It said that long legal delays due to the non-availability of special courts and the absence of safe and secure custody for the goods during the interim period, the value of the seized goods diminish very fast as well.

The report also said the Government loses huge amounts as revenue due to the destruction of goods, diminution in value and loss of goods resulting from the retention of confiscated goods including motor vehicles in open areas within the port premises for long periods. Meanwhile there are 255 court cases pending up to December last year for the recovery of arrears of duties amounting to Rs 102.3 million. Of these 17 cases are being heard while 19 have been put aside by the Courts.

Warrants have been issued in respect of 58 cases and in respect of 139 cases addresses cannot be traced. Motions have been submitted in respect of 22 cases.

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