Business Times

GK depositors protest over tax claims

The Golden Key (GK) Depositors’ Association is protesting against fresh attempts made by the Inland Revenue Department (IRD) to tax depositors who are struggling to exist without their capital or interest.
GK depositors who have not paid taxes on their interest earnings or had invested untaxed `black’ money on high interest terms will be liable to pay their tax dues, Commissioner General, Inland Revenue Department Mahinda Medagoda reiterated this week. However he added that the department has not taken any action so far to recover these taxes.

He noted that the tax department will not go after the ‘sprats’ although they have widened the tax net to catch ‘big sharks’ who are evading taxes. Depositors’ Association President Anusha Emmert said that while GK victims could not even find the money for their day to day living, the Inland Revenue Department (IRD) is sending out letters demanding taxes.

She said that aggrieved depositors leading miserable lives are being driven towards further difficulties by this action of levying taxes of 15 to 35 % on their interest income earned earlier.

This was stated at the meeting chaired by President Mahinda Rajapaksa last Saturday to discuss GK and other Ceylinco issues, she said. It is also happening despite assurances by Deputy Finance Minister Ranjith Siyambalapitiya and tax chief Mahinda Medagoda that whatever dues will be recovered after depositors are repaid. But Mr Medagoda noted that the department is not taxing over 3,000 investors whose deposits are Rs. 1 million or below.

There are over 7,000 depositors who have deposited sums of money ranging from Rs. 250,000 to Rs. 8 million while a few have invested Rs. 200 million and over.

Top to the page  |  E-mail  |  views[1]
Other Business Times Articles
IMF says fiscal policy a major challenge
Current account surplus due to rising budget deficit, falling growth
GK depositors protest over tax claims
JKH wants to expand in hotel sector
Accountability and corruption haunts tsunami anniversary
GSP+ reversal: Exporters worried about mid-to-long-term impacts
Colombo bourse index reached all-time record
Comment - Lessons from the Tsunami
Mabroc Kelani Valley Teas: Creating the world’s ethical tea brands
Tapes key to Galleon case, Khan's lawyer says
TRC to dish out LTE, Digital TV and WiMax frequencies next month
Local 28.8 Mbps downlink HSPA trial a 'success'
Coca-Cola employees improve facilities at Ampara school
'ICT for National Development and Integration' next week
Central Bank steps to rescue yet another ailing finance company
Utilities Regulator to ensure safety of power supply in schools
CB to guarantee bank loans to finance and leasing cos.
“Dare to Dream” blog draws in business community
22% UK SMEs want to outsource, disregard negatives - report
Kerala film park offers post production facilities for Lankan movie makers
Sri Lankan Entrepreneur of the Year meets the President
Additional leg-room on Cathay Pacific
Consumers cautious in spending
Credit Cards Vs. Debit Cards
Overspending big concern this Christmas – Business Times poll
Early planning is key to implement new accounting standards
Matchmaking programme completes 15 years
Tsunami-hit villagers of Kiula call for saner counsel at UN Climate Summit
Supreme Court to order the seizure of assets of Lalith Kotelawala
HR managers doubt accuracy of evaluation process - study
New service to care for the elders
Singer proposes Rs.600 million debenture issue to refinance debt
400 OLPC XO laptops to primary school children
Train timetables, crop prices now through GovSMS
Tea export revenue surges at Malwatte Valley Plantations
Mc Currie gets ISO certification
Uva region -- poorest in IT literacy
'Garments Without Guilt' at global meeting


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2009 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution