Deadline ALERT: IRD imposes Rs.50,000 Fine for late payments

Introduction:

The Inland Revenue Department (IRD) of Sri Lanka has introduced stringent penalties for taxpayers who fail to submit their annual income reports by the November 30 deadline. This measure, in accordance with the existing Inland Revenue Law, aims to enforce compliance and streamline the tax filing process for the assessment year 2022/2023 (April 1, 2022, to March 31, 2023).

Key Regulations and Deadline:

• The Inland Revenue Law mandates the submission of annual income reports by November 30 for the specified assessment year.
• Failure to comply with this deadline will result in a fine of Rs. 50,000 and an additional 5% of the tax payable.

Legal Considerations:

• The decision to impose penalties aligns with the provisions of the current income tax law.
• Consideration has been given to the legal implications surrounding the submission of income reports and potential consequences of non-compliance.

Parliamentary Involvement and Education:

• Income tax files have been opened for all Members of Parliament, emphasizing the universality of compliance.
• Practical explanations on completing income reports have been provided through the IRD’s website, promoting understanding and ease of submission.

Workshop on Compliance:

• A workshop organized by the Sectoral Oversight Committee (SOC) on Alleviating the Impact of the Economic Crisis addressed the importance of timely tax return submission.
• The event, presided over by MP Gamini Waleboda, Chairman of the SOC, featured active participation from State Ministers, Members of Parliament, and officials, highlighting the significance of compliance in the economic landscape.

Conclusion:

As the deadline approaches, taxpayers are urged to adhere to the November 30 cutoff to avoid the newly implemented penalties. The comprehensive approach of the IRD, coupled with educational initiatives and parliamentary involvement, signifies a commitment to fostering a transparent and efficient tax ecosystem in Sri Lanka.