Cops join IRD to raise revenue
The police has launched a new collaboration with the Inland Revenue Department (IRD) to track down unexplained wealth and go after black money, a top official said.Under the new initiative, the police will inform the IRD of their on-going investigations into money laundering and financial scams so that tax investigations could be conducted in parallel.
The move followed police investigations into bank accounts of pastor Jerome and the discovery of transactions amounting to over 12 billion rupees which had gone unnoticed by the IRD.
“We will share details of our findings with the Inland Revenue. The two departments can work in a complementary way to increase government revenue,” a top police officer said.
He pointed out that any income earned legally or otherwise is liable for tax under the Inland Revenue Act and the authorities will go after big money irrespective of how it was earned.
The police cooperation is set to ease the man-power shortage at the IRD as they will now be able to target evaders identified during criminal investigations.A mega financial scam operated by Thilini Priyamali last year underscored how vast sums of black money was entrusted to her for “investments” by individuals unable to explain their source of wealth.
Priyamali is charged with defrauding over 226 million rupees from several individuals, including politicians. Most of her victims have not come forward to press charges fearing they will be asked to disclose the source of their incomes. Both the perpetrators and victims of alleged big-time financial frauds will now be brought to the notice of the IRD as a matter of routine, the police officer said.