The Inland Revenue Department (IRD) has urged the public to file complaints on businesses which are charging Value-Added Tax (VAT) from customers without being a VAT-registered entity.
According to the Sunday Times, a senior Deputy Commissioner General of the IRD said it was mandatory for VAT-registered business entities to visibly display their VAT registration number when they engage in business transactions.
The senior Deputy Commissioner General further said if anyone is affected by such unlawful practices, they can complain to the IRD Commissioner General directly.
Stating that action has been taken on such complaints, the senior IRD official revealed that a business entity in Colombo city was raided last Wednesday.
The IRD officials had to seek police assistance to enter the premises of this business entity after they were initially barred by the management. Following the raid, they took documents and computers into custody for further investigations.
The senior IRD official said that a separate audit inquiry has also been launched to determine whether this entity, which is part of a group of companies, maintained VAT files and whether relevant taxes were paid.
If the entity or the individual is found to be non-VAT registered, we can initiate legal action along with penalties. In addition to that, the department can also launch an assessment to recover the funds levied by the entity, the official added. (NewsWire)