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New Sri Lanka tax law imposes Rs10mn fine for tax evasion

Jun 23, 2017 15:08 PM GMT+0530 | 3 Comment(s)

Sri Lanka has one of the lowest tax: GDP ratios in the Asia-Pacific region  

ECONOMYNEXT – Sri Lankans convicted of tax evasion can be liable to a fine not exceeding 10 million rupees or imprisonment for up to two years, or to both under the new tax law.


The punishment is for those who wilfully evade or try to evade the assessment, payment or collection of tax or who wilfully and fraudulently claims a refund of tax to which they are not entitled.

The new Inland Revenue bill is to be presented to parliament this month month and may become law over the next two months after extensive debate, ministers have said.

The new bill retains the feudal-style priviledge of the existing act where the President of Sri Lanka does not have to pay tax despite being the head of a 21 century democracy. Several African and third world nations have similar provisions. Some African nations like Nigeria have begun to take away the feudal-style priviledge.

According to published data US ex-President Barak Obama and his wife paid 81,472 in Federal income tax and another 16,000 in state income taxes in 2015.

81,472

(COLOMBO, June 23, 2017)
 


 

3 Comments

  1. Nana June 26, 12:58 PM

    Have they collected Billions from who involved in VAT Scam? Central Bank Bond Scam ? From MR Govt ? Many other known corruption cases ? Why no Income Tax for Politicians and Govt servants ? While This penalty is good, this will be implmented only for normal people who try to engage in business and provide employment to poor people risking their private money.Money collected like this will be used to enjoy by the Politicians and corrupt entities like Srilankan, Loss making Govt enterprises.As a protest I will stop dealing with corrupt Govt enterprises. If all of us (Public) get together and act even in such a small way, Govt will have pressure to do something. Lets start acting Today, without keep talking.

  2. sacre blieu June 24, 07:36 AM

    Are they serious or is this a joke in a funny state. People are aware how those who comply have been held to ransom by the Inland Revenue harassed until an gift is offered or higher them as advisers.
    How some were illegally insulated from paying due taxes. So, where is the law of equitable justice, when the executive has been voted by the people, how can they afterwards declare them immune to the law of the country. Leadership is expected to display the best principals and practice and not create demigods.

  3. Abdul Hameed June 24, 01:00 AM

    Those who work for govenment should be put in jail first. They do not pay a single tax. Those politicians are criminals. They sell their permits and make millions, while normail taxpaying people is put in Jails.
    If all the taxes is paid legally there would be more than 65 income is taxed by government,including tax on tax. There would be nothing left. Politicians are trying to scare people.

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