By: Staff Writer
March 25, Colombo (LNW): 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.
Meanwhile the government will enact new tax administration act in addition to existing statutes clearing complications in some sections of these acts in the recovery of tax dues and imposing penalties,.
The new act has been devised in accordance with the International Monetary Fund’s governance assessment. Directives.
The existing Inland Revenue Department (IRD) Act and the Default Taxes Special Provisions Act have stipulated conditions under which company officers, including directors, CEOs, and CFOs, can be personally held liable for the company’s tax defaults.
However the new tax administration act that applies to all taxes containing provisions that effectively deter corruption by imposing stricter penalties (including criminal charges) on habitual tax dodgers as well as on tax officials for taking bribes or aiding tax avoidance.
