Cabinet clears amendments to expedite tax appeal process

Wednesday, 24 July 2024 00:04 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers on Monday approved expediting the tax appeal process, addressing delays that have hindered the collection of Rs. 73 billion in taxes.

Recognising the need for a more efficient process, the Cabinet instructed the Legal Draftsman to prepare a draft that will expedite and formalise the tax appeal process.

The proposal, presented by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister aims to introduce amendments to the Inland Revenue Act No. 24 of 2017.

These amendments are expected to reduce delays and improve the Government’s ability to collect taxes in a timely manner.

Under current provisions, taxpayers who are dissatisfied with a decision by the Inland Revenue Department can appeal to the Commissioner General of Inland Revenue, who must issue a decision within two years.

If the taxpayer remains unsatisfied, they can further appeal to the Tax Appeal Commission, which must provide a decision within 270 days of receiving the appeal. This process can take around three years, delaying tax collection significantly.