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.
S.R. Balachandran
Council Member - National Chamber of Commerce of
Sri Lanka
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.
TOMMY WANIGESINGHE - Kurunegala
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.
Anandi Kulatilleke
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.
Mohamed Zahran - Colombo 3
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.
L. de Silva
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