The Inland Revenue Department (IRD) has shared more information on the tax amnesty proposed in the 2021 Budget unveiled in and approved by Parliament late last year.
IRD said that no assessment would be made, no penalty would be imposed and no action would be initiated under penal provisions of any Act administrated by the Commissioner General of Inland Revenue on or after 1 January 2021 to qualifying persons.
They are those who have 1) earned money from any source and such person has not declared or not paid the due taxes to the Commissioner General as required by such enactments; and 2) utilises such money hidden in Sri Lanka or outside Sri Lanka as investments on any undertaking in Sri Lanka during the period from 1 January 2021 to 31 December 2021; but subject to the payment of 1% of final tax to the Commissioner General on the gross investment amount.
“Such persons are required to make a declaration to the Commissioner General in an approved form with their investment plan,” IRD said.
The 1% tax will be paid immediately as instructed by the Commissioner General. The IRD will issue separate guidelines in this regard shortly.
The law concerning the tax amnesty under the Inland Revenue Act is yet to be passed in Parliament.
(FT)