Semi Luxury Tax For 1838cc Petrol Car...

[The Don]

OK.. Here is the update after visiting the RMV. They demanded for the tax receipts (originals and copies) for all seven years. When I told them that they have never been paid and nobody has informed the previous owner about this, they asked me to talk to the Diesel Tax division (who handle semi luxury taxes also). I checked with their database and it seems they have records for the 2nd and 3rd payments. But the first payment is missing, god knows how that happened

They want me to pay the last four, the late payment fee (50%) and also the first payment which is absolutely absurd.. According to them, getting the annual revenue license is not an issue without paying the tax. But, the insurance company need to make sure that they collect the tax when the insurance is done every year. And they are the people who have discarded their responsibility. As a result they are demanding me to pay the unpaid installments plus the late payment fee which amounts to Rs. 80,000 for the last four only and goes upto Rs. 125,000 if they include the missing first payment as well.

Things look really bad and my only option now is to get hold of the previous owner and talk to his insurance agents and get a letter or something saying that the payments have been received.. Or else get him to pay the full amount...

Jayathu, sounds like a case of bad record keeping rather than anything else. It is very strange the first payment is missing while the second and third is there, which leads me to suspect that it may be an issue with the record keeping.

It is quite sad what has happened in this case. You should take the case up with the insurance company and the previous owner and pressure them to help sort it out. As somebody else suggested you could possibly appeal and get the penalty waived on the basis it was a failing of the insurance company which has led to the tax not being collected on time. Legally I think the previous owner owes the government the due taxes though on a practical level it affects you more than him. Try to reason and negotiate before embarking on legal remedies.

[Jayathu]

Jayathu, sounds like a case of bad record keeping rather than anything else. It is very strange the first payment is missing while the second and third is there, which leads me to suspect that it may be an issue with the record keeping.

It is quite sad what has happened in this case. You should take the case up with the insurance company and the previous owner and pressure them to help sort it out. As somebody else suggested you could possibly appeal and get the penalty waived on the basis it was a failing of the insurance company which has led to the tax not being collected on time. Legally I think the previous owner owes the government the due taxes though on a practical level it affects you more than him. Try to reason and negotiate before embarking on legal remedies.

Thanks for the advice Don..

Yes, I talked to the previous owner and he says that the two payments which are on record at RMV is a mystery to him, since according to his knowledge, he has never paid. Also he says that the insurance people are not willing to offer any help on this (since they are at fault I guess). Looks like the RMV is also to blame for missing out on the first payment.. They simply can not accept the second and third without collecting the first, but for some reason their database does not have such a record.

If what the previous owner says is true and he never had to pay, then arises the question as to how he got the transfer done to his name (in 2001). And also the owner before him (in 2000). It is really unfair for me to suffer due to the mistakes of RMV, Insurance guys and the previous owners..

Anyway he agreed to accompany me to the RMV to get things sorted out but he insists that he will not pay anything.. Eventhough it is his responsibility, I have no way of pressurizing him except verbally. Currently, I am in the soup..

Also, does any one know how I can appeal or if I could speak to some one of authority at the RMV, since it is definitely not my fault. Might be able to get a concession by doing so. If I could get the late payment fee, and the first installment waived off, the total payable would be around 50,000 which should be manageable, even though I do not have to pay it ethically.

[The Don]

Thanks for the advice Don..

Yes, I talked to the previous owner and he says that the two payments which are on record at RMV is a mystery to him, since according to his knowledge, he has never paid. Also he says that the insurance people are not willing to offer any help on this (since they are at fault I guess). Looks like the RMV is also to blame for missing out on the first payment.. They simply can not accept the second and third without collecting the first, but for some reason their database does not have such a record.

If what the previous owner says is true and he never had to pay, then arises the question as to how he got the transfer done to his name (in 2001). And also the owner before him (in 2000). It is really unfair for me to suffer due to the mistakes of RMV, Insurance guys and the previous owners..

Anyway he agreed to accompany me to the RMV to get things sorted out but he insists that he will not pay anything.. Eventhough it is his responsibility, I have no way of pressurizing him except verbally. Currently, I am in the soup..

Also, does any one know how I can appeal or if I could speak to some one of authority at the RMV, since it is definitely not my fault. Might be able to get a concession by doing so. If I could get the late payment fee, and the first installment waived off, the total payable would be around 50,000 which should be manageable, even though I do not have to pay it ethically.

On previous occasions when my father had encountered such issues he was able to speak with the deputy commissioner and get it resolved.

I think you should prepare a letter summarising the facts as you've just stated and hi-lighting the inconsistencies that you have come across, which you've hi-lighted above. In doing so hi-light the possibility of RMV records being out of date, for which you are not responsible as you are not the RMV record keeper.

Get a statement from the previous owner in written format stating that he has never been explicitly requested to make these payments by his insurance company during his ownership which either means he has paid it in without his explicit knowledge (as in the insurance company has bundled it with its premium) or there has been an error on the part of the insurance company for which they are solely responsible and liable, as no misrepresentation has been made by the previous owner and no fraud committed.

Make sure these two letters are written in as formal language (but polite) as possible and make a request to the deputy high commissioner or whoever can make a ruling on this case to review your case in light of the obvious errors and inconsistencies.

You should at least be able to get the penalties waived off and a possible reduction in the money that is owed.

[Jayathu]

On previous occasions when my father had encountered such issues he was able to speak with the deputy commissioner and get it resolved.

I think you should prepare a letter summarising the facts as you've just stated and hi-lighting the inconsistencies that you have come across, which you've hi-lighted above. In doing so hi-light the possibility of RMV records being out of date, for which you are not responsible as you are not the RMV record keeper.

Get a statement from the previous owner in written format stating that he has never been explicitly requested to make these payments by his insurance company during his ownership which either means he has paid it in without his explicit knowledge (as in the insurance company has bundled it with its premium) or there has been an error on the part of the insurance company for which they are solely responsible and liable, as no misrepresentation has been made by the previous owner and no fraud committed.

Make sure these two letters are written in as formal language (but polite) as possible and make a request to the deputy high commissioner or whoever can make a ruling on this case to review your case in light of the obvious errors and inconsistencies.

You should at least be able to get the penalties waived off and a possible reduction in the money that is owed.

Thanks again Don.. I was thinking along the same lines and thought the deputy high commissioner would be the ideal person to talk to with this regard.. Guess I would have to make an appointment to meet him since it will be difficult to go and meet him on the fly.

Also, thought of going to S**C HO in Vauxhall and inquire about the car and the policies which they have issued over the past few years. Hope they can give an accurate answer as to why they have not collected the tax, and if they have done without the knowledge of the owner, they should be able to produce the receipts. The past policies have been handled by the Nuwaraeliya branch and might have to go there if the HO can not give an accurate answer.

Never know, there might be some legal thing which exempts the payments for this car. Maybe the very first owner paid them in a single installment when he brought the car down.. Wishful thinking, wouldn't you say

[xXx]

Jayathu, sorry if this sound bit harsh I assure you that is not my intention. You can’t say you are not at fault. From the comments you made at the start of this tread I’ll take it that you knew the previous owner has not paid the taxes. I fail to understand why you still went ahead with the purchase knowing this key piece of information. You should have made an inquiry with the RMV about the consequences for not paying the tax beforehand.

One can’t be more careful with the legal paperwork these days. I personally know over dozen individuals who were scammed in land sales and one of them happened to be a subsidiary of c******o. There are too many smart individuals in this country who have focused their talents and abilities to deceive people.

[Jayathu]

Jayathu, sorry if this sound bit harsh I assure you that is not my intention. You can’t say you are not at fault. From the comments you made at the start of this tread I’ll take it that you knew the previous owner has not paid the taxes. I fail to understand why you still went ahead with the purchase knowing this key piece of information. You should have made an inquiry with the RMV about the consequences for not paying the tax beforehand.

One can’t be more careful with the legal paperwork these days. I personally know over dozen individuals who were scammed in land sales and one of them happened to be a subsidiary of c******o. There are too many smart individuals in this country who have focused their talents and abilities to deceive people.

Well, it happened like this.. I was not aware of the tax requirement when I got the transfer papers signed by him. The fact that seven years have passed and all necessary tax payments must have been finalized made me think nothing much about it. I did not know that tax receipts were needed to get the transfer done. For that I am guilty.

The next mistake I did was not going with him to the RMV then and there. Instead I channeled the docs through a person from a certain leasing company who happened to regularly handle such transfers on behalf of his leasing company. The docs were handed over to this leasing guy, within an hour of the paperwork and I was informed by him that we would need the tax receipts. I immediately called the previous owner and said I need the tax receipts to which he replied that he has never paid taxes, and according to his knowledge the need for tax payments have never risen during his period.

The leasing guy checked with the RMV the next day and returned all the docs back to me saying that the receipts were needed, and mentioning that the insurance company is the responsible party and to check with them. I informed about this to the previous owner who after some time reverted back to me saying that his insurance people (S**C) does not know of any such need..

Anyway, plan to visit S**C this week and lets see their take on this..

[isam]

Well, it happened like this.. I was not aware of the tax requirement when I got the transfer papers signed by him. The fact that seven years have passed and all necessary tax payments must have been finalized made me think nothing much about it. I did not know that tax receipts were needed to get the transfer done. For that I am guilty.

The next mistake I did was not going with him to the RMV then and there. Instead I channeled the docs through a person from a certain leasing company who happened to regularly handle such transfers on behalf of his leasing company. The docs were handed over to this leasing guy, within an hour of the paperwork and I was informed by him that we would need the tax receipts. I immediately called the previous owner and said I need the tax receipts to which he replied that he has never paid taxes, and according to his knowledge the need for tax payments have never risen during his period.

The leasing guy checked with the RMV the next day and returned all the docs back to me saying that the receipts were needed, and mentioning that the insurance company is the responsible party and to check with them. I informed about this to the previous owner who after some time reverted back to me saying that his insurance people (S**C) does not know of any such need..

Anyway, plan to visit S**C this week and lets see their take on this..

Well... according to the SL law the buyer should be cautious because he is liable for the asset and the dues... unless you got a letter signed by the previous owner agreeing to pay the dues for the period he used... (guess its too late now)

The RMV is in better shape now. If you got to the accounting division at the 1st floor and gave them the number they will let you know of if any outstanding dues exist. You need to have a photocopy of the registration paper for this.

[Devinda_Z]

Well... according to the SL law the buyer should be cautious because he is liable for the asset and the dues... unless you got a letter signed by the previous owner agreeing to pay the dues for the period he used... (guess its too late now)

Caveat Emptor it is then!

[Jayathu]

The RMV is in better shape now. If you got to the accounting division at the 1st floor and gave them the number they will let you know of if any outstanding dues exist. You need to have a photocopy of the registration paper for this.

Have done this and as I said, they have the records for the 2nd and 3rd payments but not the 1st..

Last week I had a chat with the S**C branch manager who did the insurance and he says that they have been insuring based on the temporary slip issued by the RMV and not by the vehicle ownership book cos the previous owner has not got it transferred until 2006 (he has been using the car since 2001) .. He says that he can give this in writing and asks me to appeal to the RMV inquiring as to how the transfer was done in 2006 without checking into the tax receipts and why can not they do it now..

Typical ball passing I should say..

[isam]

Have done this and as I said, they have the records for the 2nd and 3rd payments but not the 1st..

Last week I had a chat with the S**C branch manager who did the insurance and he says that they have been insuring based on the temporary slip issued by the RMV and not by the vehicle ownership book cos the previous owner has not got it transferred until 2006 (he has been using the car since 2001) .. He says that he can give this in writing and asks me to appeal to the RMV inquiring as to how the transfer was done in 2006 without checking into the tax receipts and why can not they do it now..

Typical ball passing I should say..

Macho, better take this case to the Registrar or one of the assistant Registrars... the appeal might work. IMO, its worth a shot!

[Jayathu]

Macho, better take this case to the Registrar or one of the assistant Registrars... the appeal might work. IMO, its worth a shot!

Yup, should be the deputy commissioner..... Lest see what sort of an explanation he would come up with..

[isam]

Bro, any luck with this? pls don't forget to post updated on the situation.

[Jayathu]

Bro, any luck with this? pls don't forget to post updated on the situation.

Still no update machan.. currently looking at some "Sri'Lankan" ways of getting things done from gov offices..