Cabinet to fix crisis over Inland Revenue Commissioner tomorrow

Speculation was rife that Cabinet this week will make a decision on a permanent appointment of a new Inland Revenue Commissioner. 

Failure to make a permanent appointment had triggered a slew of court cases challenging the IRD’s authority to carry out tax collection. At present, career Revenue Officer and Senior Deputy Commissioner Nadun Gamage is acting. 

Daily FT learns Finance Minister Mangala Samaraweera is likely to submit a Cabinet paper recommending Gamage for the permanent post. A previous move by the Ministry to appoint former Central Bank Deputy Governor Premaratne saw opposition from Inland Revenue officers, leading to it being challenged in court as well.

It was reported last week that private sector tax dues have exceeded Rs. 50 billion and keep mounting due to a continuing legal dispute concern IRD.

Cases have been filed in the Supreme Court, the Court of Appeal and the Civil Appellate High Court seeking rulings.

IRD legal officers have pointed out that these court cases have become an obstacle to collecting the tax revenue due to the Department.