A former senior officer of the Inland Revenue Department Gunasiri Jayatilleke was remanded till April 5 by the Colombo Fort magistrate.
He was produced in courts by the CID in connection with criminal misappropriation of Rs. 357 million accruing from VAT.
The police detectives said their investigations revealed that the senior officer had allegedly authorized this amount to be released to a businessman without checking the relevant documents and the funds were later released using several forged identity cards.
They said 20 national identity cards had been submitted to the Inland Revenue Department and of them 19 were forged.
On an earlier occasion the Magistrate had ordered that the passports of the inland revenue officer and the businessman be suspended.