SC proposes changes to tax amnesty bill

Wednesday, 18 August 2021 00:20 - - {{hitsCtrl.values.hits}}

The Supreme Court has suggested certain amendments to the proposed Finance Bill which seeks to grant tax amenities and indemnify persons who voluntarily disclose taxable supply, income, or assets, against liability from investigation, prosecution, and penalties.

“The Supreme Court has examined all the provisions of the bill and has suggested amendments to the clauses 4(1), 5(1), 5(2), 5(3), 5(4), 5(5), 6(1), 7(1), 12(b), 13(1), 14 and 20,” Speaker Mahinda Yapa Abeywardena announced in Parliament yesterday.

The Court has directed that Clause 17 which prevents the Commissioner General of Inland Revenue from issuing any assessment under the provisions of Nation Building Tax Act, No. 9 of 2009 or Economic Service Charge Act, No. 13 of 2006 in relation to a taxpayer, under the provisions of the respective law, on or after 1 January 2021, be deleted in its entirety.

With regard to the other amendments, the SC said that if the aforementioned clauses of the bill were amended as mentioned in the determination of the Supreme Court, the bill could be passed by a simple majority in Parliament.

Several political parties and civil society organisations have challenged the bill in the SC.