New IRD Bill runs into opposition

A new Inland Revenue Draft Bill, aimed to introduce key tax reforms the first time since independence, has run into trouble with mounting opposition from tax department officials.

The new bill due to be introduced early this year has to clear a hurdle placed by Inland Revenue Department Officials (IRD) who are vowing to par- alyse tax collection countrywide.

The IRD trade union joint front says that the proposed bill has provision to outsource tax collection separating the implementation of statutes and tax administrative functions of the department.

This will affect the promotional prospects, job security and benefits of employees, a member of the joint committee said, adding that they have written to the President, Prime Minister and Finance Minister to withdraw the proposed IRD Act and protect the rights of employees.

They also emphasised the need to carry out tax administration and revenue management in accordance with the present Constitution and regulation requirements without the interference of an outside- facilitating Centre.

The government is planning to sub- mit the bill in parliament by March 2017 with a view to simplify and modernise the current IRD Act as periodical amendments made to the Act since its enactment has made it complicated.

Under the new Act, the tax base is to be broadened by removing excessive tax incentives and expanding the sources of income; modernise rules related to cross border transactions to address base erosion and combat tax avoidance; reduce complexity through an improved principles-based drafting style; and strengthen and clarify existing powers of the IRD to improve enforcement.

IRD trade unions vowed to stage protest demonstrations and intensify their campaign to strong trade union action, if the authorities failed to withdraw the proposed Act.