Inland Revenue Act 2006 · As enacted · Chapter XIV · Deduction of Income Tax from Remuneration of Employees by Employers
125. Issue of assessments on employers
Official English translation. The Sinhala text prevails.
Official translationFrom Department of Government Printing, unchanged
Where an employer who is required under the provisions of this Chapter to deduct income tax from the remuneration paid to his employees–
fails to deduct the whole or any part of the income tax for any pay period;
fails remit to the Commissioner-General the whole or any part of the income tax deducted for any pay period; or
fails to furnish any monthly or annual declaration under section 120, an Assessor may at any time during the year of assessment within which that pay period falls or within three years from the end of that year of assessment, assess the amount if income tax or the additional amount of income tax which such employer in the opinion of the Assessor should have deducted and paid to the Commissioner-General for such pay period, and shall, by notice in writing require such employer to pay such amount forthwith together with such amount as may be due under section 127.
Where it appears to an Assessor that for any pay period in any year of assessment an employer has been assessed under subsection (1) at less than the proper amount of income tax which he should have deducted and paid to the
Commissioner – General, the Assessor may at any time during that year of assessment or within three years from the end of that year of assessment, assess such employer at the additional amount of income tax at which such employer in the opinion of the Assessor should have been assessed and shall, by notice in writing, require such employer to pay such amount forthwith together with such amount as may be due under section 127:
Provided that where in the opinion of the Assessor any fraud, evasion or wilful default has been committed by or on behalf of any employer in relation to any income tax deductible by such employer in any year of assessment, it shall be lawful for the Assessor to make an assessment or an additional assessment on such employer, at any time after the end of that year of assessment.
Chapter XV
Provisions Relating to the Payment of Income Tax by a Government Institution
Chapter XVI
Deductions from Interest Paid by Banks and Financial Institutions
Chapter XVII
Deduction of Income Tax from Specified Fees Paid by Specified Persons
Chapter XVIII
Chapter XIX
Chapter XX
Deduction of Income Tax from Any Annuity or Royalty Paid or Any Management Fee Paid or Similar Payment Made by Any Person or Partnership
Chapter XXI
Retention of Moneys in Certain Provident Funds
Chapter XXII
Assessments
Chapter XXIII
Appeals A-Appeals to the Commissioner-General
Chapter XXIV
Finality of Assessments and Penalty for Incorrect Returns
Chapter XXV
Tax in Default and Sums Added Thereto
Chapter XXVI
Recovery of Tax
Chapter XXVII
Miscellaneous
Chapter XXVIII
Repayment
Chapter XXIX
Penalties and Offences
Chapter XXX
Administration
Chapter XXXI
General
Chapter XXXII
Interpretation
Chapter XXXIII