Questions and Answers

Long delay in payment of EPF arrears:

Question: My EPF Membership No. 29736 A 00002 I would be very thankful if you would kindly attend to my problems given below and bring redress:-

I was an employee in the Walker Sons & Co. Ltd, No. 18, St. Michaels Road, Colombo 3. I was not paid EPF for a period of 7 months from 2003 November to 2004 May.

I submitted my claims duly perfected with the required letter from the employee on 23/7/2008 which was acknowledged by the Central Bank on 08/08/2008.

They assigned a reference No. T4274 photocopies of above letters annexed for perusal. I made inquiries several times but they failed to pay me the arrears.

I am being a very senior person over 83 years of age wish you would take possible early action to get this payment without further delay.

J. H. G. Gunewardena,

Kotte

Answer: Sorry for the long delay in replying your letter received on 11/05/2009. This is because it took us long to sort out your matter. First it was difficult to contact the EPF section as the telephones there are always busy.

The EPF Department claimed that your EPF money has not been received. Fortunately you have sent us a copy from your Employer with the Receipt Nos. of the payments made to the EPF. We faxed this letter to them and followed it up.

They now confirm that your payment is ready and that it will be credited to your Bank Account. Please check with your bank after two weeks and if not received, you may contact us or Mr. Wickremeratne of the Central Bank EPF Section on Tel. 2477224.

Exemption from Motor Vehicle Emission Test

Question: I had the opportunity of reading; your valuable advise on the Questions and Answers page of the Daily News of April 30, 2009.

When I was reading through the question of C. Fernando of Dehiwela, how to obtain a nonuser certificate, your good self had mentioned at the end of the answer that his car is Exempted from the Emission test on account of its age. My question is, Sir, that my car is with me since October 1979 and I am the First owner. The car is with me for the last 30 years.

I would be very much obliged, if you could kindly let me know the age limit of the vehicles which are Exempted from the Emission test and the Regulations regarding the Emission test.

Vijaya Silva,

Miriswatta, Demanhandiya

Answer: You have stated that your car is with you since 1979 and that you are the first owner. Therefore, it is highly unlikely that your car was manufactured before 1975. Only motor cars manufactured before 1975 are exempted.

Thus you will have to obtain the emission test certificate for your car. For full details on this subject you may read our “OPA At Your Service” page on Thursday 11th June 2009 as the first Question and Answer headed “Emission Test exemption”.

Income Tax assessment time bar

Question: I refer to your reply appeared in “Daily News” 11/06/2009 and wish to confirm the following:-

It is true that for 2007/2008 the time bar was 18 months provided annual return was submitted on or before 30/09/2008. If not it is 04 years. However, for 2008/2009 return could be submitted on or before 30/11/09 and the time bar is 02 years. If not it is 04 years. This amendment to Inland Revenue Act No. 10 of 2006 was passed by the Parliament on 25th March, 09 duly published in “Daily News” of 23rd April, 2009 page X.

S. R. Balachandran, Wellawatte

Answer: The above clarification refers to our response to the question by L.J. Fernando, Colombo 7, Yes as clarified the time bar of 18 months for 2007/2008 and two years for 2008/2009. Only if the returns are submitted within the specified period.

That is September 30, 2008 for 2007/08 and November 30, 2009 for 2008/2009. If not the Tax Department can go back to 3 years for 2007/2008 and 4 years for 2008/2009. However, in case of fraud or willful wrong declarations there is no time bar and the Tax Department can go backwards for any number of years as decided by them.

We thank Mr. Balachandran as a regular reader of our page for pointing out any lapses on our part on Tax matters.

B.O.C. Customer Pension Scheme 1981

Question: I refer to your questions and answers column in the DN of 21/05/2009 about the BOC customer pension scheme 1981. In your answer to their question of E. I. A. M. P. Fernando of Wattala, you have said that the bonus payment ceases when the payment of the pension commences, according to the advertisements dated 13/01/1981 & 22/01/1981 appeared in the Ceylon Daily News. I have to say it is wrong and the account holder is entitled for the payment of the bonus in every five years even after the commencement of the monthly pension too.

The advertisement of the above dates had been superseded by the several other advertisements published thereafter. I have herewith enclosed a photocopy of one of such advertisements appealing in the Ceylon Daily News of, 09/04/1981 along with a photocopy of the page regarding the Bank of Ceylon pension scheme in the brochure (prospectus) published by the B.O.C.

The paragraph next to the bonus schedule appearing in the advertisement and also the bottom paragraph of the brochure have correctly explained that the account holder is definitely entitled for the payment of the last bonus he received as long as he lives and after his death, his spouse in every five years.

There is another point to mention. In compliance with the guarantee mentioned in the overleaf of the brochure there will be no variations of the mentioned amounts appearing in the brochure for those who joined the scheme in year 1981.

G. A. Jinadasa, Mulleriyawa

Answer: One of our readers brought up the matter of the BOC Pension claim and also made a complaint to the Financial Ombudsman. His claim was that he should get double that of the pension amount he is receiving. Unfortunately, or unknowingly he had started to receive his pension at the end of 20 years of contribution.

Had he waited for 25 years he would have been entitled to double the pension. However, he did not make a written complaint about the bonus, thus the BOC officials were not willing to discuss the bonus issue at the Ombudsman’s office although OPA who was present at this inquiry was trying to get a clarification on the non payment of bonus.

We strongly suggest that you take this matter up with the Financial Ombudsman and copy us so that we too could look after your interest. Since you have new evidence Bank will be compelled to give an answer. Please sent your complaint on the BOC Pension Bonus issue to “The Financial Ombudsman, 143A, Vajira Road, Colombo 5.