Inland Revenue Act 2017 · As enacted · Part II
181. False or misleading statements
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
A person who makes a statement to a tax official that is false or misleading in a material particular shall be liable for a penalty if an amount properly payable by or refundable to the person under this Act exceeds or is less than the amount that would be payable or refundable if the person were assessed on the basis that the statement was true.
The amount of the penalty for which the person is liable shall be the greater of fifty thousand rupees —
if an amount payable by the person would have been less if it were determined on the basis of the information provided in the statement, the amount by which that amount would have been so reduced;
or
if the amount of a refund that the person applied for would be increased if it were determined on the basis of the information provided in the statement, the amount by which that amount would have been so increased.
No penalty shall be imposed under this section if the person who made the statement did not know and could not reasonably be expected to know that the statement was false or misleading in a material particular.
A reference in this section to a statement made to a tax official shall include a reference to a statement made orally, in writing, or in another form to that officer acting in the performance of the officer’s duties under this Act, and shall include a statement made—
in an application, certificate, declaration, notification, return, objection or other document made, prepared, given, filed, submitted or furnished under this Act;
in any information required to be furnished under this Act;
in a document furnished to a tax official otherwise than pursuant to this Act;
in an answer to a question asked of a person by a tax official; or
to another person with the knowledge or reasonable expectation that the statement would be conveyed to a tax official.
A reference in this section to a statement that is misleading in a material particular shall include a reference to a statement which contains an omission of a matter or thing from the statement.
This section shall not apply to conduct subject to the penalty under section 180.