DEPARTMENT OF ACCOUNTINGFACULTY OF MANAGEMENT

STUDIES & COMMERCEUNIVERSITY OF JAFFNA

ACC-3135 ADVANCED BUSINESS TAXATION

TAX ADMINISTRATION IN SRI LANA

CONTENTS01.INTRODUCTION

02. RETURN OF INCOME

03. CALLING FOR FURTHER INFORMATION

04. CERTAIN INDIVIDUALS TO SUBMIT A RE-

TURN

05. PENALTY FOR FAILURE TO FURNISH A RE-

TURN

06. ISSUE OF ASSESSMENT

07. TIME BAR FOR ASSESSMENT

08. PAYMENT OF TAX BY SELF ASSESSMENT

09. DISCOUNT ON TAX PAYMENT

10. REFUND OF TAX PAID IN EXCESS

11. AUTHORIZED REPRESENTATIVE

12. RECOVERY OF TAX DEFAULT

13. METHODS OF RECOVERY

14. CONCLUSION

15. REFERENCES

Learning objectives:-

Learning objective of this pre-sentation is to explain who have

to furnish return, penalty for failure to furnish re-turn and incorrect return appeal

on dissatisfied an assessment payment of tax un-

der the self assessment and refund available

 What do u mean by tax adminis-tration?

01. INTRODUCTION

Tax administration links legal

statutes and the “real,” implemented tax system

and thus affects fiscal deficits and the tax

burdens of different sec-tors and

income classes.

02. RETURN OF INCOME

Every person chargeable with income

tax for any year of assess-ment is

required to furnish a return of his

income on or before 30th No-vember

following the end of the year of

assessment

03. CALLING FOR FURTHER INFORMA-TION

A deputy commissioner can call

information from any person or

to call any person or anauthorized

representative to attend per-son,

to be questioned or specified matters.

04. CERTAIN INDIVIDUALS TO SUBMIT A RETURN

An individual who satisfy any four require-ments out of

five requirements specified has to submit a return of Income

Five requirements are, Paying monthly residential electricity bill exceed-ing a net amount of Rs.10000 Incurring a monthly credit card bill exceeding Rs.25000 Paying a monthly residential telephone bill ex-ceeding a net amount of Rs.10000 Purchasing an air ticket to travel abroad Owning a motor vehicle, used for travelling pur-pose

05. PENALTY FOR FAILURE TO FUR-NISH A RETURN

If a person fails to furnish a return of income on the

due date, the Commissioner General has

the power to impose a penalty

of up to Rs.50000.

06. ISSUE OF ASSESSMENT

An assessment or addi-tional

assessment can be made after the

15th November of the year following the year of

assessment if any person has,

Not paid the tax due for any

year of assessment or,Paid less tax than the

proper amount due

07. TIME BAR FOR ASSESSMENT

If a person has duly made a return on or before 30th

November of the succeeding year of assessment, no

assessment can be made af-ter

the expiry of two years from the

thirtieth day of November of the

immediately succeeding year of

assessment.

08. PAYMENT OF TAX BY SELF ASSESS-MENT

Tax has to be paid quarterly in 4 equal installments on or be-fore •15th august•15th November•15th February•15th may Of the succeeding year of assessment

Penalty for non compliance

09. DISCOUNT ON TAX PAYMENT

If an individual pays a quarterly installment of tax, 30 days prior to the payable date,

the income tax payable

reduced by 10%

10. REFUND OF TAX PAID IN EXCESS

A person who has paid ex-cess tax,

though payment or by deduc-tion

should made a claim in writ-ing

within 3 years of the end of the

year of assessment with suf-ficient

proof of over payment to the satisfaction of commissioner general to be entitled to re-

fund.

11. AUTHORIZED REPRESENTATIVE

• A taxpayer could be represented by an au-thorized

representative for the purpose of acting under

Inland Revenue Act• An authorized representative means any

individuals authorized in writing,

1. By a person to act on his behalf for the purpose of act

2. For any year of assessment specified in the

authorization.

12. RECOVERY OF TAX DEFAULT

Taxes deemed to be defaultSelf assessment tax or any part thereof not paid on or before the due dateTax as per assessment not paid as speci-fied in the notice of assessment

Before taking recovery action, the com-missioner general should issue a notice in writing stating-particulars of tax in default-that recovery action is being contem-plated

13. METHODS OF RECOVERY

• Appoint a tax collector & recover tax• Take action to collect from seizure & sale of immovable property•Take action before a magistrate, who can collect the tax as a fine•Issues notices• Transfer immovable property to government• Issue notice to recover from em-ployer• Claim from the liquidator