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 dollars in Federal income tax and another 16,000 dollars in state income taxes in 2015.
(COLOMBO, June 23, 2017)