42. Writing off any interest on underpayments and late payments

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

(1)

Subject to the provisions of subsection (2), the

Commissioner-General shall write off any interest on underpayments and late payments chargeable and remaining outstanding under the following Acts: –

(a)

section 157 of the principal enactment, up to the year of assessment ending on March 31, 2025;

(b)

the Surcharge Tax Act, No. 14 of 2022; or

(c)

the Finance Act, No. 35 of 2018, on debt repayment levy.

(2)

The Commissioner-General shall write off interest specified in subsection (1), subject to the condition that the full amount of tax and any applicable penalties excluding any amount waived off by the Commissioner-General for the relevant year of assessment are paid prior to the expiration of a period of six months from the date on which the provisions referred to in subsection (2) of section 1 come into operation.

(3)

For the avoidance of doubt, it is hereby declared that –

(a)

where a taxpayer has fulfilled the condition specified in subsection (2) prior to the date on which the provisions referred to in subsection (2) of section 1 come into operation, the Commissioner-General shall consider such taxpayer as having complied with the requirements of subsection (2);

(b)

for the purpose of the application of this section, the Commissioner-General shall consider the years of assessments or taxable periods separately; and

(c)

where the principal amount of any tax payment has been applied as interest relating to the tax by the Commissioner-General under section 154 of the principal enactment, the amount so applied as interest shall be treated as the principal amount of tax solely for the purpose of the application of this section.

Read on from s 43