tax administration in srilanka
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Transcript of tax administration in srilanka
DEPARTMENT OF ACCOUNTINGFACULTY OF MANAGEMENT
STUDIES & COMMERCEUNIVERSITY OF JAFFNA
ACC-3135 ADVANCED BUSINESS TAXATION
TAX ADMINISTRATION IN SRI LANA
CONTENTS01.INTRODUCTION
02. RETURN OF INCOME
03. CALLING FOR FURTHER INFORMATION
04. CERTAIN INDIVIDUALS TO SUBMIT A RE-
TURN
05. PENALTY FOR FAILURE TO FURNISH A RE-
TURN
06. ISSUE OF ASSESSMENT
07. TIME BAR FOR ASSESSMENT
08. PAYMENT OF TAX BY SELF ASSESSMENT
09. DISCOUNT ON TAX PAYMENT
10. REFUND OF TAX PAID IN EXCESS
11. AUTHORIZED REPRESENTATIVE
12. RECOVERY OF TAX DEFAULT
13. METHODS OF RECOVERY
14. CONCLUSION
15. REFERENCES
Learning objectives:-
Learning objective of this pre-sentation is to explain who have
to furnish return, penalty for failure to furnish re-turn and incorrect return appeal
on dissatisfied an assessment payment of tax un-
der the self assessment and refund available
What do u mean by tax adminis-tration?
01. INTRODUCTION
Tax administration links legal
statutes and the “real,” implemented tax system
and thus affects fiscal deficits and the tax
burdens of different sec-tors and
income classes.
02. RETURN OF INCOME
Every person chargeable with income
tax for any year of assess-ment is
required to furnish a return of his
income on or before 30th No-vember
following the end of the year of
assessment
03. CALLING FOR FURTHER INFORMA-TION
A deputy commissioner can call
information from any person or
to call any person or anauthorized
representative to attend per-son,
to be questioned or specified matters.
04. CERTAIN INDIVIDUALS TO SUBMIT A RETURN
An individual who satisfy any four require-ments out of
five requirements specified has to submit a return of Income
Five requirements are, Paying monthly residential electricity bill exceed-ing a net amount of Rs.10000 Incurring a monthly credit card bill exceeding Rs.25000 Paying a monthly residential telephone bill ex-ceeding a net amount of Rs.10000 Purchasing an air ticket to travel abroad Owning a motor vehicle, used for travelling pur-pose
05. PENALTY FOR FAILURE TO FUR-NISH A RETURN
If a person fails to furnish a return of income on the
due date, the Commissioner General has
the power to impose a penalty
of up to Rs.50000.
06. ISSUE OF ASSESSMENT
An assessment or addi-tional
assessment can be made after the
15th November of the year following the year of
assessment if any person has,
Not paid the tax due for any
year of assessment or,Paid less tax than the
proper amount due
07. TIME BAR FOR ASSESSMENT
If a person has duly made a return on or before 30th
November of the succeeding year of assessment, no
assessment can be made af-ter
the expiry of two years from the
thirtieth day of November of the
immediately succeeding year of
assessment.
08. PAYMENT OF TAX BY SELF ASSESS-MENT
Tax has to be paid quarterly in 4 equal installments on or be-fore •15th august•15th November•15th February•15th may Of the succeeding year of assessment
Penalty for non compliance
09. DISCOUNT ON TAX PAYMENT
If an individual pays a quarterly installment of tax, 30 days prior to the payable date,
the income tax payable
reduced by 10%
10. REFUND OF TAX PAID IN EXCESS
A person who has paid ex-cess tax,
though payment or by deduc-tion
should made a claim in writ-ing
within 3 years of the end of the
year of assessment with suf-ficient
proof of over payment to the satisfaction of commissioner general to be entitled to re-
fund.
11. AUTHORIZED REPRESENTATIVE
• A taxpayer could be represented by an au-thorized
representative for the purpose of acting under
Inland Revenue Act• An authorized representative means any
individuals authorized in writing,
1. By a person to act on his behalf for the purpose of act
2. For any year of assessment specified in the
authorization.
12. RECOVERY OF TAX DEFAULT
Taxes deemed to be defaultSelf assessment tax or any part thereof not paid on or before the due dateTax as per assessment not paid as speci-fied in the notice of assessment
Before taking recovery action, the com-missioner general should issue a notice in writing stating-particulars of tax in default-that recovery action is being contem-plated
13. METHODS OF RECOVERY
• Appoint a tax collector & recover tax• Take action to collect from seizure & sale of immovable property•Take action before a magistrate, who can collect the tax as a fine•Issues notices• Transfer immovable property to government• Issue notice to recover from em-ployer• Claim from the liquidator