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Black money

I consider black money as a cancer of the society. It should be brought out for the benefit of the country. The accumulation of black money results in retardation of economic recovery.

In October 1970, Dr. N.M. Perera (Finance Minister) brought de-monetization as an effort to bring out black money. However, he admitted that his efforts were not successful taking into consideration of the additional cost incurred (cost of printing new notes, payment for Armed Forces). Subsequent Governments efforts to bring out the black money were not successful the last being the tax amnesty offered in 2004.

It was not successful as the people were afraid that the information given by them would result in extra scruitinization of their financial matter by the Inland Revenue Department.

We must analysis reasons for accumulation of black money.

Heavy taxation

People will try to evade taxes by suppressing information so as to secure their savings.

Disguised income

There are types of income which cannot be checked due to lack of records. Example: Private bus operators, leading professionals, operators of tutorise, beauticians, meals suppliers on wheels and retail shops who never issue receipts for their income.

In India, it has been proved the major black money accumulation is in cinema field. Actors, actresses receive millions and show only thousands. Film producers convert black money into white money by producing films. Same situation may prevail in Sri Lanka.

Bribery

Bribery and black money are like brother and sister. At present we are aware that corruption has spread all over Sri Lanka.

Smuggling

Buying and selling smuggled goods also result in black money which is not accounted for tax purpose.

Drugs

Billions of money roll in the drugs ring and despite strict measures taken by the Government it could not controlled.

In India it has been estimated that nearly 1,400 billion US$ had been deposited in Swiss Banks by Indian Ministers, actors, business magnates etc. Swiss Banks had refused to divulge the information to the Indian Government. However, they had agreed to US Government to give details of deposits in respect of those who were charged for tax evasions. Now India is considering to use the same steps to get information.

In Sri Lanka from the fallen finance companies the details of depositors are available to the Inland Revenue Department and investigations are going on. If we strength these steps by checking all finance companies, banks etc. we could obtain the list of tax evaders and the matter could be referred to the Swiss Banks who may consider giving additional details as agreed to the USA Government.

I bring this to the notice of relevant authorities for necessary action.


Maintenance of proper accounts

I write to find out whether there is an accepted method of maintaining proper accounts, or whether the systems adopted defer from industry to industry or from organization to organization.

I am aware, certain establishments maintaining accounts and procedures quite contrary to the accepted AR and FR regulations applicable. However the above positions have never been challenge by any responsible authority who is empowered to do so.

Needless to mention this situation deprives the country of the actual revenue she is entitled to, while those responsible continue to operate as above deliberately or through ignorance, not been detected and corrected by the law. The above position is further aggravated by the absence and non-maintenance of proper records and documentation supporting the income and expenditure.

Accordingly, this position benefits the giver, more than the receiver, which position should be corrected by enforcing the law of the land to give to Ceasar, what belongs to him, which is necessary for the development and sustenance of the country.

All those who are eligible should be required to pay their dues in full, for which maintenance of proper accounts should be made compulsory. As far as I am aware, if you expect someone to give what is due to you without your asking for it, you will never get it.


A blessed and virtuous Lanka

In a country with a rich cultural heritage, all the efforts of our President to develop our country would be in vain if our people do not develop culturally. The trash that we see, in the name of teledramas every night on almost every channel is a good eye-opener and quite sufficient to demoralize our people. I would suggest we make meaningful and sensible teledrams, with good stories by well-known authors as done earlier. This would really create good citizens, and make this a better place for us to live.


Utter waste of electricity

When I was passing a showroom displaying a range of CFL bulbs located down Jetawana Road, Colombo 14 around 11.00 am last Poya day, I noticed that the showroom was closed but all the lights on display were on. This Company also markets a well-known brand of car and the office is somewhat opposite the showroom.

It is ironical that whilst promoting energy saving lights, the company is wasting quite a lot of electricity in keeping all the lights on at day time even during holidays.

When I inquired from a person attached to this showroom recently, he informed me that the lights are on from early morning until late into the night everyday. Hope, the management of the Company which wants to promote energy saving bulbs will switch off all the lights during holidays at daytime or keep only a very few bulbs lit, to save electricity.


Bambalapitiya flats

This is a timely article by this respected doctor, Ruwan Gunatunga, about life in the Bambalapitiya flats those days.

In these so-called Tamil homeland areas too, they should get used to and also help people of other communities to come and settle down among them. The next generation at least will grow up to be a peaceful and broad-minded people.

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