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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2590

Ceylon Electricity Board overpaid 317 million to Inland Revenue department

Munza Mushtaq - Reporting from Colombo for Asian Tribune

Colombo, 09 September, (Asiantribune.com): Highly irresponsible officers attached to the Ceylon Electricity Board's (CEB) financial department have made an overpayment amounting to a whopping Rs. 317 million as Economic Service Charge (ESC) to the Inland Revenue Department.

The payment made in respect of the period beginning from April 1st to December 31st 2004 to the Department should have actually been Rs. 37.5 million, but the CEB has instead paid more than Rs. 354 million as the ESC which became operative from April 1, 2004.

This irresponsible act has been disclosed in the final audit report on the CEB for the year 2004 by Chartered Accountants Ernst & Young. The reports states; "Economic Service Charge became operative from 1st April 2004. Institutions with an annual turnover of more than Rs. 50 million are liable for this payment at 1% of turnover and the maximum annual levy is limited to Rs. 50 million.

CEB had however paid Rs. 354,612,477 as ESC in respect of the period 1st April 2004 to 31st December 2004, whereas the maximum amount payable was only Rs. 37.5 million. The overpayment amounts to Rs.31, 711, 477," the report disclosed.

It is learnt that this part of the report was conveniently concealed by 'insiders' and thus was not even mentioned in the annual CEB report by the Auditor General (AG). The question is how was this information withheld from the AG.

- Asian Tribune -

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