28. Amendment of section 163 of the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 163 of the principal enactment is hereby amended as follows: -

(1)

in subsection (2) of that section, by the substitution for the words “Where a person”, of the words and figures “Prior to April 1, 2026, where a person”;

(2)

in subsection (3) of that section, by the substitution for the words “In any proceedings”, of the words and figures “Prior to April 1, 2026, in any proceedings”;

(3)

in subsection (4) of that section, by the substitution for the words “In any proceedings”, of the words and figures “Prior to April 1, 2026, in any proceedings”;

(4)

by the insertion immediately after subsection (4) of that section, of the following new subsections: -

“(4A) (a) With effect from the year of assessment commencing on April 1, 2026, where a person fails to pay tax when it is due, the Commissioner-General may submit a certificate containing particulars of the defaulter, as specified in subsection (4B)

to the Magistrate of the Magistrate’s Court within the local limits of whose jurisdiction the defaulter resides or the place of business of the defaulter is situated:

Provided that, no such certificate shall be submitted where a taxpayer has requested for an administrative review of the tax payable pursuant to section 139 or appealed to the Tax Appeals Commission pursuant to subsection (1) of section 140 and such application is pending.

(b)

Upon receipt of the certificate referred to in paragraph (a), the Magistrate shall summon the defaulter before him to show cause as to why further proceedings shall not be taken against such defaulter for the recovery of the tax in default.

(c)

Where the defaulter fails to show sufficient cause to the satisfaction of the

Magistrate, the tax in default shall be deemed to be a fine imposed by a sentence of the

Magistrate on such defaulter for an offence punishable with fine only and not punishable with imprisonment.

(d)

The provisions of subsection (1)

of section 291, except the provisions of paragraphs (a), (d) and (i) of that subsection, of the Code of Criminal Procedure Act, No.

15 of 1979 relating to default of payment of a fine imposed for such an offence shall thereupon apply, and the Magistrate may make any direction which, by the provisions of that subsection, the Magistrate could have made at the time of imposing such sentence.

(4B)

The certificate referred to in subsection (4A) shall contain particulars of tax, interest, penalty or any other amount payable under this Act including any tax, interest, penalty or other amount payable prior to the date on which this subsection comes into operation, the name and the last known address of the place of business or residence of the defaulter.

(4C)

Unless the Commissioner-General has granted an extension of the time for payment of tax under section 151, the correctness of any statement in a certificate submitted by the Commissioner-General for the purpose of subsection (4A), shall not be called in question or examined by the Magistrate in any proceedings under this section and accordingly, nothing in that subsection shall be read and construed as authorising a Magistrate to consider or decide the correctness of any statement in such certificate or to postpone or defer such proceedings for a period exceeding thirty days.

(4D)

Nothing in subsections (2) to (5)

of section 291 of the Code of Criminal

Procedure Act, No. 15 of 1979, shall apply in any case referred to in subsection (4A).

(4E)

In any case referred to in subsection (4A) in which the defaulter is sentenced to imprisonment in default of payment of the fine deemed by that subsection to have been imposed on him, subject to subsection (6), the

Magistrate may allow time for the payment of the amount of that fine or direct payment of that amount to be made in instalments.

(4F)

The Magistrate may require bail to be given as a condition precedent to allowing time to show cause as provided in subsection (4A) or for the payment of the fine under subsection (4E), and the provisions of

Chapter XXXIV of the Code of Criminal

Procedure Act, No. 15 of 1979, shall apply, where the defaulter is so required to give bail.

(4G)

Where the Magistrate directs under subsection (4E) that the payment be made in instalments, and default is made in the payment of any one of such instalments, the proceedings may be taken as if default had been made in payment of all the instalments then remaining unpaid.

(4H)

In any proceeding under subsection (4A), the Commissioner-General’s certificate shall be sufficient evidence that the tax has been duly assessed and is in default, and any plea that the tax is excessive, incorrect, or under appeal, shall not be entertained.”;

(5)

in subsection (5) of that section, by the substitution for the words and figure “in subsection (3)”, of the words and figures “in subsection (3) or subsection (4A)”; and

(6)

in subsection (6) of that section, by the substitution for the words and figure “in subsection (3).”, of the words and figures “in subsection (3) or subsection (4A).”.

Read on from s 29