149. Managers of entities

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

(1)

Where an entity fails to pay tax on time, every person who is or has been a manager of the entity at any time since the relevant time shall be jointly and severally liable with the entity and every other such person for payment of the tax.

(2)

Subsection (1) shall apply irrespective of whether the entity has ceased to exist or not.

(3)

Provisions of subsection (1) shall not apply to a manager who has exercised the degree of care, diligence, and skill that a reasonably prudent person in the position of the manager would have exercised in preventing in the initial and continuing failure to pay tax.

(4)

Amounts payable to the Commissioner-General by a manager under this section shall be a personal tax liability of the manager.

(5)

Where a manager pays tax by reason of a liability under subsection (1), the manager may recover the payment from the entity as a debt due.

(6)

A manager of an entity may not be assessed for an amount under this section after the period of limitations for collecting the relevant tax from the entity has expired.

(7)

In this section-

“entity” means any taxpayer other than a partnership, unincorporated body, or an individual;

“manager” of an entity includes a person purporting to act as a manager of the entity and, in the case of a company, includes a director, the chief executive officer, and the chief financial officer of the company; and

“relevant time” is six months before the events that gave rise to the entity’s tax liability.

Read on from s 150

149. Managers of entities

Schedules