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Saturday April 20th, 2024

Sri Lanka to punish auditors and tax consultants, tax court planned

ECONOMYNEXT – Sri Lanka will punish auditors and tax consultants and bar them from practicing if they prepare false tax filings, Prime Minister and Finance Minister Mahinda Rajapaksa said presenting a budget for 2021.

“I propose to introduce punitive legal provisions to ensure that the private tax consultants and auditors representing the tax payers and prepares and certifies fraudulent tax reports, aids and abates in such action will be faced with such consequence including being barred from practicing,” PM Rajapaksa told parliament.

Sri Lanka has several tax consultancies which have publicly come under fire from ex-Treasury Secretary P B Jayasundera who is now Secretary to the President.

Meanwhile Rajapaksa said a special tax appeals court will be set up.

“Further I propose to strengthen the legal provisions relating to the establishment of specific time frames for the implementation of rulings and for the settlement of appeals submitted against the tax administrative decisions made under the Inland Revenue Act,” he said.

“It is also proposed to establish a special tax appeals court to resolve tax appeals.”

He said from April 01, 2021 all companies would be required to file tax returns electronically thought a ‘E-filing’ system and use a Tax Identification Number.

Sri Lanka will also issue directions on loan loss provisions of banks for tax purposes.

“I also propose to issue relevant instructions under the Inland Revenue Act to ensure better and transparent management with regard to the provisions for anticipated losses of loans and doubtful loans in calculating taxes of banks and financial institutions,” PM Rajapaksa said. (Colombo/Nov18/2020)

Comments (3)

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  1. VJ says:

    Will he also submit proposals to investigate people with disproportionate assets?

  2. sacre blieu says:

    These tax consultants are in tow with the dishonest officials of the IRD who have setup fictitious consultancies, and hide such files from exposure. Even most of the INGO’s are mere fronts for illicit activities and not for the programs they have been allowed to register for and given tax holidays.

  3. sacre blieu says:

    And how long will it take to establish, construct and resumption of such institutions and that justice will be done without delay.

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Comments (3)

Cancel reply

Your email address will not be published. Required fields are marked *

  1. VJ says:

    Will he also submit proposals to investigate people with disproportionate assets?

  2. sacre blieu says:

    These tax consultants are in tow with the dishonest officials of the IRD who have setup fictitious consultancies, and hide such files from exposure. Even most of the INGO’s are mere fronts for illicit activities and not for the programs they have been allowed to register for and given tax holidays.

  3. sacre blieu says:

    And how long will it take to establish, construct and resumption of such institutions and that justice will be done without delay.

Sri Lanka discussing giving extra land, water for Chinese oil refinery

ECONOMYNEXT – Sri Lanka is in discussions with China’s Sinopec to give extra land and assure water supplies after the company decided to expand the capacity of a planned oil refinery in Hambantota, Energy Minister Kanchana Wijesekera said.

“There are concerns on how the water supply is going to be provided for the refinery,” Minister Wijesekera told reporters Friday.

The refinery will need more land and also revise conditions in a Board of Investment agreement, he said.

Read more
Sinopec to double capacity of new refinery in Sri Lanka’s Hambantota

Recommendations and decisions from Sri Lanka’s side had already been sent and Sinopec is expected to revert back in May.

“We are hoping to sign the agreement once everyone has agreed,” Wijesekara said.

The principle agreements are expected to be signed by June, he said.

The refinery could sell up to 10 percent of its output in the domestic market.

“There is no commitment by the government to purchase anything,” Minister Wijesekera said. (Colombo/Apr19/2024)

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Sri Lanka rupee closes weaker at 302.00/50 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 302.00/50 to the US dollar in the spot forex market on Friday, down from 301.50/302.00 a day earlier, dealers said.

There was increased demand for dollars after the central bank bought 715 million dollars from forex markets. In the previous two months it was buying on average about 200 million US dollars, leaving market participants and bank in a ‘oversold’ position.

There were some official dollars sales Friday dealers said.

READ Sri Lanka rupee quoted wide to US dollar as peg inconsistencies flare up

Bond yields were broadly steady.

A bond maturing on 15.12.2026 closed at 11.30/40 percent down from 11.35/40 percent.

A bond maturing on 15.09.2027 closed at 11.95/12.05 percent up from 11.90/12.05 percent.

A bond maturing on 15.12.2028 closed stable at 12.15/25 percent.

A bond maturing on 15.09.2029 closed stable at 12.30/40 percent.

A bond maturing on 01.10.2032 closed stable at 12.40/50 percent. (Colombo/Apr19/2024)

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Sri Lanka stocks close down, banks trade down

ECONOMYNEXT – The Colombo Stock Exchange closed down on Friday, data on its site showed.

The broader All Share Index closed down 0.38 percent, or 44.80 points, at 11,753; while the S&P SL20 Index closed down 0.53 percent, or 18.46 points, at 3,456.

Turnover was at 1.4 billion. The diversified financials (Rs366mn) and banks (Rs266mn) sectors continued to see selling pressure.

“This was possibly due to uncertainty around the bond discussions,” market participants said.

With the exception of Sampath Bank Plc (up at 77.50) all other banks traded down in the day. Commercial Bank of Ceylon Plc was down at 104.50, Hatton National Bank Plc was down at 188.50, and DFCC Bank Plc was down at 77.00.

LOLC Finance Plc saw the most trades and closed up at 6.40. Another LOLC company, Browns Investments Plc, also saw high traded volumes and closed up at 5.60.

Softlogic Capital Plc was up at 7.00, and Softlogic Holdings Plc was up at 11.20. A trading suspension imposed on SHL.N0000 was lifted effective today as the company submitted the annual report for the year ended 31st March 2023.

However, shares of the Company will remain in the Watch List “due to Qualified Audit Opinion and Emphasis of matter on going concern in the Independent Auditor’s Report in the Audited Financial Statements for the year ended 31st March 2022.”

Dialog Axiata Plc, which announced its merger with Bharti Airtel Thursday, saw its share price close up at 11.90.

“There was some traction on index heavyweights,” market participants pointed out.

Top contributors to the APSI included Aitken Spence Plc (up at 134.50), Ceylon Tobacco Company Plc (up at 1,245.25, and Lion Brewery (Ceylon) Plc (up at 1,048.50).

There was a net foreign inflow of 5 million. (Colombo/Apr19/2024)

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