VAT Default By Clubs
Several night clubs and pubs in Colombo have defaulted on payments of the Value Added Tax (VAT) and this amount is now running into millions, Inland Revenue Department officials said.
By Indika Sri Aravinda
Speaking to The Sunday Leader, an official at the department said that VAT collection officers are finding it hard to obtain the money as the clubs and pubs are closed in the daytime.
“At least 98 percent of the clubs and pubs are closed in the daytime and that is the time our officers are working. So it is becoming difficult to collect the huge amounts that these clubs owe the department,” an official of the department said on the condition of anonymity.
The official also said that some clubs are registered under the name of an individual and not under the club while others have political backing.
The official said that some leading clubs and pubs even charge 14 percent as VAT when it should be 12 percent. The Inland Revenue Department was in the possession of a bill from a popular club in Bambalapitiya which was charging 14 percent VAT from customers. The Sunday Leader attempted to contact the Inland Revenue Department Commissioner General K.M.S. Kandegedara for a comment but the attempts were futile.
So, give special overtime to collection officers to work at night.
(There are public officers who do night duty).
Send demands to pay up by registered post. If no reply, file cases in courts.
The truth is the Commissioner General of Inland Revenue is afraid to offend politicians in power.
Another reason maye be ‘kickbacks’ from the clubs.
The massive VAT Fraud case a few years earlier is still not settled. Most of the ‘takers’ have escaped.