Govt. widens tax net via quarterly information sharing with IRD

Monday, 25 March 2024 00:00 - - {{hitsCtrl.values.hits}}

Financial institutions including banks and non-banking financial institutions mandated to supply Current Account holders’ balances, loans and advances, all information shared with CRIB
Colombo Stock Exchange mandated to submit information of investors’ shareholding and value quarterly
Registrar General’s Department to supply information on land and property deals
Registrar General of Companies and Department of Motor Traffic among other mandated institutions
Public sector personnel in charge of granting contracts for supply of goods, work or consulting required to furnish monthly information

The Inland Revenue Department

The Government is widening the tax net via mandating sharing of information quarterly and monthly by multiple institutions and individuals with the Commissioner General of Inland Revenue (CGIR) from next month.

The Gazette bearing the number 2376/25 and dated 21 March was issued by President Ranil Wickremesinghe in his capacity as the Finance, Economic Stabilisation and National Policies Minister to enhance tax compliance and administration in the country.

Effective 1 April 2024, several institutions and select public sector personnel must provide specified information outlined in Schedule I of the notice to the CGIR. The information will be incorporated into the Revenue Administration Management Information System (RAMIS) of the Inland Revenue Department to manage tax risks effectively.

Accordingly, financial institutions including banks and non-banking financial institutions regulated by the Central Bank of Sri Lanka and Colombo Stock Exchange are required to submit information quarterly, no later than the 20th day of the month following the end of each quarter. If any information is not currently maintained by individuals or institutions, they must commence record-keeping by 1 July 2024 and comply with the notification accordingly.

Banks and leasing companies are mandated to supply Current Account holders’ balances, loans and advances, leasing contracts and all information shared with Credit Information Bureau (CRIB).

The CSE is required to submit information of investors’ shareholding and value among other details.

The Registrar General’s Department is to supply information on land and property deals. The Registrar General of Companies and Department of Motor Traffic are also among mandated institutions.

Public sector personnel in charge of granting contracts for supply of goods, work or consulting are required to furnish monthly information.

The CGIR will notify individuals and Government institutions of the commencement date for furnishing information under Schedule I through written or public notices.