ECONOMYNEXT – Sri Lanka plans to give an amnesty to assets from income on which a range of taxes under a series of law on income, value added or betting levies had not been paid or there are arrears according to a draft law.
The amnesty shall undisclosed income up to March 30, 2020.
A one percent tax shall be charged on the income.
The funds has to be invested in Treasury bills or bonds, shares of a resident company, quoted debt securities or movable or immovable property.
It will not cover persons who are investigated or have been convicted under money laundering, terrorist financing, bribery law and narcotics or where assessments had already been made.
Download billTax Amnesty bill
Tax arrears under the following laws will be covered.
SCHEDULE I
(sections 2,6,8,10,12,13,14 and 15)
1. Inland Revenue Act, No. 28 of 1979
2. Inland Revenue Act, No. 38 of 2000
3. Inland Revenue Act, No. 10 of 2006
4. Inland Revenue Act, No. 24 of 2017
5. Value Added Tax Act, No. 14 of 2002
SCHEDULE III
(sections 10,11,14 and 15)
Part A
1. Wealth Tax and Gifts Tax imposed under Inland Revenue
Act, No. 28 of 1979
2. Turnover Tax Act, No. 69 of 1981
3. Surcharge on Wealth Tax Act, No. 25 of 1982
4. Surcharge on Wealth Tax Act, No. 8 of 1989
5. Surcharge on Income Tax Act, No. 26 of 1982
6. Surcharge on Income Tax Act, No. 12 of 1984
7. Surcharge on Income Tax Act, No. 7 of 1989
8. National Security Levy Act, No. 52 of 1991
9. Save the Nation Contribution Act, No. 5 of 1996
10. Goods and Services Tax Act, No. 34 of 1996
11. Surcharge on Income Tax Act, No. 6 of 2001
12. Debits Tax Act, No. 16 of 2002
13. Social Responsibility Levy imposed under Finance Act,
No. 5 of 2005
14. Economic Service Charge Act, No. 13 of 2006
15. Nation Building Tax Act, No. 9 of 2009
16. Economic Service Charge imposed under Finance Act,
No. 11 of 2004
Part B
1. Optional Value Added Tax imposed under section 25H of
the Value Added Tax Act, No.14 of 2002
2. VAT Advance Payment deducted under section 26A of the
Value Added Tax Act, No.14 of 2002
SCHEDULE IV
(sections 2,8,10,13 and 15)
1. Betting & Gaming Levy Act, No. 40 of 1988
2. Finance Act, No. 11 of 2002
3. Stamp Duty Act, No. 43 of 1982
4. Stamp Duty (Special Provisions) Act, No. 12 of 2006 (Colombo/July19/2021)