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srilawsby aturio
As enacted
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Contents

Part II

165. Execution against taxpayer’s property

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

(1)

Where the taxpayer is in default, the

Commissioner-General may cause execution to be levied on the taxpayer’s property but, except when a determination has been made under subsection (7) of section 164, the

Commissioner-General may proceed to execution only if the taxpayer has been served with a notice of intention to levy execution, and the taxpayer has failed to pay the tax within thirty days after service of the notice.

(2)

Where the Commissioner-General has reasonable grounds to believe that the collection of tax is in jeopardy, the Commissioner-General may demand immediate payment of the tax and, on failure of the taxpayer to pay the taxwithin the period stated in such demand, may proceed to levy execution on the taxpayer’s property immediately, notwithstanding subsection (3) of section 152.

(3)

A person (including a bank or other financial institution) in possession of, or holding security over, property on which a levy has been made shall, on demand, surrender the property, or discharge the security, to the

Commissioner-General, except in respect of the part of the property that is already subject to attachment or execution under judicial process.

(4)

A person who fails to comply with the demand shall be liable to the Commissioner-General in the amount of the value of the property or security held, but not in excess of the amount for the collection of which the levy is made.

(5)

A person complying with the requirements of this section or of section 170 shall, from the time of compliance, be discharged from an obligation to the taxpayer or another person to the extent of the value of property surrendered, or the security discharged, to the Commissioner-General and shall not be personally liable for loss or damage incurred as a consequence of compliance.

(6)

A levy under this section shall commence within five years of the date on which the taxpayer was in default.

(7)

A taxpayer’s personal effects and household furnishings without substantial value shall be exempt from a levy.

Read on from s 166

Schedules