Inland Revenue Act 2006 · As enacted · Chapter XXII · Assessments
163. Assessments and additional assessments
Official English translation. The Sinhala text prevails.
Official translationFrom Department of Government Printing, unchanged
Where any person who in the opinion of an
Assessor is liable to any income tax for any year of assessment, has not paid such tax or has paid an amount less than the proper amount which he ought to have paid as such tax for such year of assessment, an Assessor may, subject to the provisions of subsection (3) and (5) and after the fifteenth day of November immediately succeeding that year of assessment, assess the amount which in the judgment of the
Assessor ought to have been paid by such person, and shall by notice in writing require such person to pay forthwith–
the amount of tax so assessed, if such person has not paid any tax for that year of assessment; or
the difference between the amount of tax so assessed and the amount of tax paid by such person for that year of assessment, if such person has paid any amount as tax for that year of assessment:
Provided that an Assessor may, subject to the provisions of subsections (3) and (5), assess any person for any year of assessment at any time prior to the fifteenth day of November immediately succeeding that year of assessment, if he is of opinion that such person is about to leave Sri Lanka or that it is expedient to do so for the protection of revenue, and require such person to pay such tax to the Commissioner-General earlier than as required under subsection (1) of section 113:
Provided further that any assessment in relation to the tax payable by a company under paragraph (b) of subsection (1)
of section 65 or paragraph (c) of subsection (2) of section 62, shall be made after the expiry of thirty days from the due date for payment of such tax.
Where it appears to an Assessor that any person liable to income tax for any year of assessment, has been assessed at less than the proper amount, the Assessor may, subject to the provisions of subsection (3) and subsection (5), assess such person at the additional amount at which according to his opinion such person ought to have been assessed, and the provisions of this Act as to notice of assessment, appeal and other proceedings shall apply to such additional assessment and to the tax charged thereunder.
Where a person has furnished a return of income, the
Assessor may in making an assessment on such person under subsection (1) or under subsection (2), either–
accept the return made by such person; or
if he does not accept the return made by that person, estimate the amount of the assemble income of such person and assess him accordingly:
Provided that where an Assessor does not accept a return made by any person for any year of assessment and makes an assessment or additional assessment on such person for that year of assessment, he shall communicate to such person in writing his reasons for not accepting the return.
Where a person has not furnished a return of income and the Assessor is of the opinion that such person is liable to pay income tax, the Assessor may, in making an assessment on such person under subsection (1) or subsection (2), estimate the amount of the assemble income of such person and assess him accordingly, but such assessment shall not affect the liability of such person to a penalty under this Act for failure or neglect to furnish a return.
Subject to the provisions of section 72, no assessment of the income tax payable under this Act by any person or partnership -
who or which has made a return of his or its income on or before the thirtieth day of September of the year of assessment immediately succeeding that year of assessment, shall be made after the expiry of eighteen months from the end of that year of assessment; and
who has failed to make a return on or before such date as referred to in paragraph (a), shall be made after the expiry of a period of three years from the end of that year of assessment:
Provided, that nothing in this subsection shall apply to the assessment of income tax payable by any person in respect of any year of assessment, consequent to the receipt by such person of any arrears relating to the profits from employment of that person for that year of assessment:
Provided further that, where in the opinion of the Assessor, any fraud, evasion or wilful default has been committed by or on behalf of, any person in relation to any income tax payable by such person for any year of assessment, it shall be lawful for the Assessor to make an assessment or an additional assessment on such person at any time after the end of that year of assessment.
Notwithstanding the provisions of subsection (5), where the Court annuls any assessment on the ground that the provisions of the proviso to subsection (3) have not been complied with, it shall be lawful for an Assessor to make, where necessary, a further assessment in place of the assessment so annulled:
Provided that such further assessment shall be limited to only one assessment in place of the assessment so annulled, and no further assessment or additional assessment shall be made.
An assessment under subsection (1) or an additional assessment under subsection (2) on any person for any year of assessment, shall not affect the liability of such person to the penalty specified in subsection (2) of section 173 and for the purposes of that section, the amount so assessed shall be deemed to be the income tax which such person ought to have paid for that year of assessment.
Where any individual has for any year of assessment
(hereinafter in this subsection referred to as the “first-mentioned year of assessment”) furnished a return of his income and has, in relation o each year of assessment within the period of three years of assessment immediately preceding the first-mentioned year of assessment, complied with the requirements of subsection (1) of section 106 and of subsection (1) of section 113, and has –
(i)
paid as income tax, on the basis of the return so furnished for the first-mentioned year of assessment, a sum not less than one hundred and twenty per centum of the income tax for the year of assessment immediately preceding the first mentioned year of assessment; or
specified as assessable income, in the return so furnished for the first mentioned year of assessment, a sum not less than one hundred and twenty five per centum of the assessable income for the year of assessment immediately preceding the first mentioned year of assessment, and
sworn an affidavit that no fraud, evasion or wilful default as been committed in relation to the income tax payable for the first mentioned year of assessment, then such return shall be accepted and no assessment or additional assessment shall be made on such individual.
Where any individual whose assessable income for any year of assessment does not exceed one million rupees, and who has -
not been given notice by a Deputy Commissioner under subsection (7) of section 106 in relation to that year of assessment or any previous year of assessment; or
not furnished a return of his income, and if he has a child, the income of such child for any previous year of assessment, furnishes for that year of assessment, under subsection (1), a return of his income and if he has a child the income of such child, and pays the tax on the basis of such return together with any penalty due under Chapter XXV, such return shall be accepted and no assessment or additional assessment shall be made on such individual for that year of assessment, notwithstanding that such return is not accompanied by a statement of accounts.
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