9 October 2024 01:45 am Views - 3328
By Nishel Fernando
Sri Lanka’s Inland Revenue Department (IRD) has launched a special initiative to recover Rs. 570 billion in outstanding taxes from certain taxpayers under the self-assessment payment system, with a deadline of November 30.
According to IRD Deputy Commissioner General N.M.N.S.B. Dissanayake, the IRD has collected Rs. 1,455 billion in taxes so far this year, meeting 71 percent of its annual revenue target. He noted that under the self-assessment payment system, there are instances where some taxpayers intentionally underestimated their taxes.
“We have identified instances where taxes were underestimated under this method. We are taking necessary measures to collect the correct tax amount with fines,” Dissanayake added.
Under the special programme launched this week on October 7, he revealed that IRD officials are conducting field visits to the premises of these identified taxpayers to advise them to settle their taxes to the IRD Commissioner General’s account promptly.
In failing to do so, Dissanayake warned that the IRD would be forced to take maximum legal measures against such taxpayers to collect these unpaid taxes promptly. “We are kindly requesting the taxpayers to settle their outstanding taxes in order to avoid unnecessary and unavoidable legal repercussions,” he added.
He noted that the IRD has legal provisions under the Act to freeze bank accounts and take over other assets, including properties of taxpayers who evade taxes. Furthermore, Dissanayake stressed that the IRD would collect such outstanding taxes with interest and fines.
According to the IRD, only a small number of taxpayers are continuing to evade paying taxes, but their outstanding taxes remain a considerable amount.
Meanwhile, the new government has initiated ministerial-level discussions to set next year’s fiscal targets.