Thursday Dec 26, 2024
Thursday Dec 26, 2024
Wednesday, 21 July 2021 00:00 - - {{hitsCtrl.values.hits}}
The Government yesterday presented the Finance Bill which makes provisions to grant tax amenities and indemnify persons who voluntarily disclose taxable supply, income, or assets, against liability from investigation, prosecution and penalties.
Leader of the House Dinesh Gunawardena presented the bill to the House.
The bill can be called in the Supreme Court within seven days prior to its Second Reading in the House.
The provisions of the bill will apply to any person who has not disclosed any amount of taxable supply, income or assets, which were required to be disclosed under the provisions of any law in a value added tax return for any taxable period ended on or prior to 31 March 2020, or in a return of income for any year of assessment ended on or prior to 31 March 2020.
The bill provides for a person who intends to invest an amount equivalent to the undisclosed taxable supply, income, or assets, immediately, to invest such amount in the purchase of shares issued by a resident company; Treasury bills or Treasury bonds issued by the Central Bank on behalf of the Government of Sri Lanka; any quoted debt securities issued by a resident company in the country; or any movable or immovable property.
If a person to whom the law applies intends to disclose any undisclosed taxable supply, income, or assets, other than immovable or movable property, he is liable to pay the Tax on Voluntary Disclosure at the rate of 1% per centum of such amount or income, or on the cost of such asset, invested or deposited, or any immovable or movable property.
The bill also states the Commissioner General shall write off any penalty or interest, calculated in terms of the provisions of any law specified in relation to a taxpayer, in respect of which the payment due date was 31 December 2020, or a date prior to that date, if the taxpayer settles the full amount of the tax outstanding, under the provisions of said laws, on or prior to 31 March 2022.
