Withholding Tax (WHT) and tax files: Why this complicated and wasteful exercise? The present draft tax proposals states that the introduction of Withholding Tax (WHT) would be only an advanced deduction and the payees will be subjected to file tax returns each year and make the balance payments, over and above WHT percentage if they [...]

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Withholding Tax (WHT) and tax files: Why this complicated and wasteful exercise?

The present draft tax proposals states that the introduction of Withholding Tax (WHT) would be only an advanced deduction and the payees will be subjected to file tax returns each year and make the balance payments, over and above WHT percentage if they are liable to do so. In effect all those whose income will be more than the tax threshold will be forced to open tax files and submit tax returns hereafter.

What a wasteful expenditure! Were the officials aware or did it occur to them, the substantial administrative costs to be borne by them for this complicated exercise? Also the unnecessary hassle for the tax liable public in filing returns which easily can be avoided.  It would have been simpler, practical and most appropriate for the Govt. to use the existing banking system and its facilities to make the tax deductions which could be made foolproof by fixing higher WHT rates, say for instance a rate of 10 % or if the need be, even a higher rate imposed on interest income, and making it a final tax ?

The Govt. would earn much higher revenue, without incurring even 10 % of the anticipated administrative costs and the hassle of monitoring. To avoid deduction of a higher percentage on low income earners, a slab system could be introduced to be applied on the basis of a declaration by the depositor, confirming his total income does not exceed an agreed amount.

By this method the hassle of opening tax files by all and sundry, filing returns, monitoring payments, and substantial admin costs could be avoided. Moreover, through the banking system these collections could be done much more effectively and with the introduction of the unique identities as proposed will leave no room for defects, errors or irregular declarations.

Over to the experts to consider these thoughts in a more professional manner.

RTD  Colombo


Jaffna remembers Dr Samuel Fisk Green

Usually we celebrate the birthdays of living people with close friends and relations.

But celebrating a birthday of someone who has passed away, that too a 200th birth anniversary is not common. This happened in Jaffna on October 10, this year when the birth anniversary of a pioneering American doctor who came by ship to this country was marked.

Dr Samuel Fisk Green, MD, arrived at the Trincomalee harbour and from there travelled to Jaffna. Why he chose to go to the Jaffna peninsula and whether anyone else accompanied him is not known.

His mission to Ceylon was to introduce Western medicine that is scientific medicine to Jaffna.

He stayed in the Vadukoddai area and was later accommodated at the Jaffna Division Vadukoddai Diocese and initiated a medical school.

His birthday was commemorated at the conference hall, Green Memorial Hospital with the patronage of the priests of the Vadukkoddai branch diocese.

The hospital staff and well-wishers joined in the memorable ceremony with prayers and devotional songs.

Dr V. Mahendran  Chunnakam


Police in aragalaya and short term benefits

The Police too are in the aragalaya. But with a different purpose. When a few people gather on the road protesting against the government, police with all their paraphernalia arrive at the scene in large groups to disperse it. This action benefits both parties. The protestors get evidence of issues they are protesting on and better publicity – even worldwide, and the policemen get the opportunity to show their departmental bosses and the ruling party how loyal they are and to get some stars and stripes on their uniforms.

The Police maybe thinking that achieving some quick personal benefits is far better than waiting for far reaching common benefits. A recent news item stated that “A total of Nine thousand two hundred ninety five public complaints have been lodged against Sri Lanka Police with the National Police Commission (NPC) during the last five years, documents show”.

B. Perera  Via email


Ode to Remembrance Day

The foot of your gravestone

Is covered with red poppies

The words aren’t enough

To express your sacrifice

On the battlefield

The winds will whisper

This tearful story

To the passers-by

And the sun’s rays

Will make your name

Glitter forever

In gold

 Vishaka Senadhira  Via email


CMC should instal CCTV cameras above cashier counters

The Colombo Municipal Council (CMC) should instal CCTV cameras  above all the cashiers who receive cash to monitor transactions and the cash counting machines should be kept on a higher elevation for rate payers to see their money being counted.

It is a common practice for cashiers to drop money on the floor and say that the money is short even when correct amounts are given.

January is the month when rate payers rush to the CMC to pay their property rates. The cashiers at the CMC make use of this rush and the large crowds to confuse the unsuspecting rate payers.

A victim  Colombo 7


 

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