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New
tax amnesty limited to income tax The new bill repeals the UNF's wide-ranging tax amnesty which was severely criticised for allowing tax dodgers to get away. The previous tax amnesty under the Inland Revenue (Special Provisions) Act No 10 of 2003 covered customs and excise duty, GST, defence levy, income tax and exchange control laws. The new bill repeals the Inland Revenue (Special Provisions) Act No 10 of 2003 and restricts the amnesty to income tax or inland revenue matters. Some 150 cases involving big private firms accused of trying to evade taxes such as customs duties could be re-opened for investigations. "After this bill is passed, it would be possible for the government to pursue action to recover many millions of rupees owed to the state," an official said. The Inland Revenue Department got about 50,000 declarations in 2003 under the UNF's amnesty that ended on August 15, 2003. The new bill has been referred to a Supreme Court bench consisting of Chief Justice Sarath N. Silva, C. N. Jayasinghe and N.K. Udalagama as an urgent bill for a special determination. The court is to convey its decision to the Speaker when parliament meets on Tuesday. The income tax amnesty given under the new bill also insists that there has to be full disclosure of all assets and incomes of the persons concerned. The Commissioner General of Inland Revenue is given a lot of discretion under the new bill and he can refuse to grant an amnesty if he believes there is no full disclosure of all assets. Furthermore, under the new bill an amnesty is given only if there is a new asset or a new source of income that is disclosed in the returns. Those making a declaration under the amnesty must show a new source of income as the aim of the amnesty is to broaden the tax base and get more revenue for the state. If no new source of income is declared, then the state will not get any extra revenue and not achieve the aim of the amnesty, the official said. |
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