4. Amendment of section 7 of the principal enactment

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

Section 7 of the principal enactment as last amended by the Tax Appeals Commission (Amendment) Act, No.4 of 2012 is hereby further amended as follows:-

(1)

by the repeal of subsection (1) thereof and the substitution therefor of the following:-

“(1) A person who is aggrieved by the determination –

(a)

of the Commissioner-General of Inland

Revenue appointed in terms of the Inland

Revenue Act, (hereinafter referred to as the

“Commissioner-General”) given in respect of any matter relating to imposition of any tax, levy, charge, duty or penalty under the provisions of any of the enactments specified in Column I of

Schedule I, or Schedule II to this Act; or

(b)

of the Director-General of Customs

(hereinafter referred to as the “Director-General”) given in respect of any matter specified in subsection (1A) of section 10

of the Customs Ordinance (Chapter 235), may appeal to the Commission in accordance with the provisions hereinafter set out:

Provided that, every person who wishes to appeal to the Commission under paragraph (a)

shall, at the time of making of such appeal, be required to pay into a special account which shall be opened and operated by the Commission for such purpose, an amount-

(a)

as is equivalent to ten per centum which is non-refundable; or

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(b)

as is equivalent to twenty five per centum which is refundable subject to subsection (1A) of this section or a bank guarantee for the equivalent amount which shall remain valid until the appeal is determined by the

Commission, of the sum as assessed by the Commissioner-General as being payable by such person as tax, levy, charge, duty or penalty under any of the said enactments and which assessment is the subject of the appeal.”;

(2)

by the insertion immediately after subsection (1)

thereof, of the following new subsection:-

“(1A) (a) The amount referred to in paragraph (a) or (b) of the proviso to subsection (1), as the case may be, shall be transferred to the

Commissioner-General upon the determination of the respective appeal to which such amount is applicable and which shall be set off against the sum as assessed by the Commissioner-General as being payable by such person as tax, levy, charge, duty or penalty under any of the said enactments and which assessment is the subject of the appeal.

(b)

Any excess of the amount referred to in paragraph (b) of the proviso to subsection (1), may be set off against the taxes due and which are administrated by the Commissioner-General.

Where any balance if any of such amount shall be refunded to the appellant on request made in that behalf in writing to the Commissioner-General.”;

(3)

in subsection (2) of that section, by the substitution for the words and figures “specified in Column I of

Schedule I and Schedule II to this Act” of the words and figures “specified in paragraphs (a) and (b) of subsection (1) of section 7 ”;

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(4)

in subsection (3) of that section, by the substitution for the words “notification to the Commissioner-General” of the words “notification to the

Commissioner-General or the Director-General, as the case may be.”.

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