March 19, Colombo (LNW): The Inland Revenue Department (IRD) of Sri Lanka is set to implement a strategy aimed at enhancing tax compliance among the nation’s highest-income earners, with plans to identify a group of 100 taxpayers with the most substantial reported incomes from diverse sources.
This targeted group will be selected through a comprehensive review of various data sources, including third-party information such as real estate holdings, reports from the Financial Intelligence Unit (FIU), bank account records, and data obtained from treaty partners, a report by Sunday Times disclosed.
The IRD’s initiative includes ongoing monitoring and review, with additional individuals slated to be added to the scrutiny list as the programme progresses.
Commissioner General of the IRD, W.A. Sepalika Chandrasekara, emphasised that this measure is part of a broader effort to enhance fairness and instill confidence in the nation’s tax administration.
To facilitate this endeavour, the IRD has established a dedicated unit known as the High Wealth Individuals Unit (HWIU), comprising ten members located at the Large Taxpayer Office of the department.
This unit is tasked with engaging select high-net-worth individuals and their advisors to ensure compliance with tax filing obligations.
Furthermore, the HWIU will conduct additional risk assessments and profiling of affluent taxpayers, with a focus on auditing cases deemed to pose the highest risks.
In pursuit of comprehensive information, the IRD will collaborate with both domestic and international entities to access relevant data that can aid the HWIU in identifying potential instances of tax non-compliance.
