Inland Revenue (Amendment) Act 2004 · As enacted
36. Insertion of new section 118A in the principal enactment
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
The following new section is hereby inserted immediately after section 118 of the principal enactment and shall have effect as section 118A of the at enactment :—
118A. Notwithstanding the provisions of section 118, where any income tax payable by any employer under the provisions of this
Chapter is in default in respect of a pay period commencing on or after April 1, 2004, such employer shall pay in addition to such tax a penalty, not exceeding ten per centum of such tax in default calculated as follows :—
where the tax payable on a return submitted under subsection (1) of section 98 has not been paid fully or partly on or before the due date, at the rate of five per centum for the first month
“Penalty on default.
Inland Revenue (Amendment)
of such default and a further one per centum for each month or part of a month thereafter, on such amount of tax in default ;
where an assessment has been issued in the absence of a return due from such person and the relevant tax is in default, at the rate of ten per centum on such amount of tax in default ;
where an assessment was under appeal and the tax became payable on the settlement of such appeal, at the rate of ten per centum on such amount of tax that became payable.”.