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Contents

Part II

148. Liability for tax following winding-up

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

(1)

This section shall apply to a company which is wound up without having satisfied its tax liabilities, including any liability to withhold and remit tax,

(2)

A person who was a shareholder of the company at the time of the winding-up or during the preceding year shall be jointly and severally liable to pay the unpaid tax to the extent of a distribution of cash or property from the company received as a shareholder within one year prior to its winding-up.

(3)

A person liable for tax of a company under this section may invoke any rights as against the Department that would have been available to the company.