107. Audit reports to be furnished by partners etc.

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

An Assessor may give notice in writing to a partner of a partnership or to any other person, who carries on or exercises any trade, business, profession or vocation, requiring such person to furnish within the period specified in such notice, all particulars as may be necessary for the ascertainment of the statutory income in respect of any year of assessment, including a statement of accounts and any schedules containing such particulars as may be specified in the notice of such trade, business, profession or vocation, for that year of assessment or for any period in respect of which the statutory income for that year of assessment is computed:

Provided that–

(a)

where such trade, business, profession or vocation is carried on or exercised by any company, such company shall, notwithstanding that a notice under this section has not been given to it, furnish for every year of assessment or for any other period in respect of which the statutory income for that year of assessment is computed, such statements and such schedules as may be specified by the Commissioner-General, by notice published in the Gazette.

The provisions of this sub-paragraph shall not apply to any company other than a quoted public company, or any other company having a turnover of not less than two hundred and fifty million rupees or net profit of not less than one hundred million rupees for the year ;

(b)

where such trade, business, profession or vocation is carried on or exercised by any partnership, or by any person other than any company having a turn over of not less than fifty million rupees or in the case of a partnership, a divisible profit of not less than twenty-five million rupees or in the case of any other person, a net profit of not less than twenty-five million rupees for the year, such partner or such person shall notwithstanding that a notice under this section has not been given to him, furnish for such year of assessment or for such period , as the case may be, such statements and such schedules as may be specified by the Commissioner-General by notice published in the Gazette.

(2)

Where a statement of accounts in support of a return of income furnished by any person for the purposes of this

Act, is prepared by an approved accountant, such statement shall be accompanied by–

(a)

a certificate of an approved accountant in such form and containing such particulars, as may be specified by the Commissioner-General; and

(b)

schedules containing such particulars relating to the statement of accounts, as may be specified by the

Commissioner-General:

Provided that a statement of accounts in support of a return of income for any year of assessment or for any other period in respect of which the statutory income for that year of assessment is computed—

(a)

furnished by any company in respect of any trade, business, profession or vocation carried on or exercised by such company; or

(b)

furnished by any partner of any partnership or by any person other than a company, in respect of any trade, business, profession or vocation carried on or exercised by such partnership or by such person, where the turnover of such trade, business, profession or vocation for that year of assessment or that period, exceeds five million rupees, shall be prepared on the basis of an audit carried out by an approved accountant.

The provisions of this subsection shall apply only to a quoted public company or any other person or partnership having a turnover of not less than two hundred and fifty million rupees or a net profit or divisible profit, as the case may be, not less than one hundred million rupees for the year.

(3)

For the purposes of this section–

(a)

“approved accountant” means–

(i)

an accountant who is a member of the Institute of Chartered Accountants of Sri Lanka;

(ii)

an accountant who is approved by the

Commissioner-General for the purpose of the definition of authorized representative;

(iii)

any individual who is registered as an auditor under the Companies (Auditors) Regulations and approved by the Commissioner-General for the purpose of the definition of “authorized representative”; or

(iv)

an auditor authorized to carry out audits of co-operative societies registered under the Co-operative Societies Law, No. 5 of 1972, in relation to any such co-operative society where the turnover of such society for the year does not exceed fifty million rupees;

(b)

“net profit” in relation to any trade, business, profession or vocation, means net profit ascertained in accordance with accepted commercial practices and accounting standards;

(c)

“turnover” in relation to any trade, business, profession or vocation and to any period, means the total amount received or receivable from transactions entered into, or, for services performed, during that period in carrying on or exercising such trade, business, profession or vocation (excluding any amount received or receivable from the sale of capital assets).

Read on from s 108

Chapter XIII