SL tax net to be widen with nearly one million individuals obtained TIN.
By: Staff Writer
January 06, Colombo (LNW): The Inland Revenue Department is resolute in reaching its target of widening the tax net while increasing the number of tax files with the registration of persons of over18 years issuing them with taxpayer information number.
The number of individuals registering with the Taxpayer Identification Number (TIN) in Sri Lanka has reached nearly 01 million, according to the Inland Revenue Department.
Previously, in the fiscal year 2022, there were only 204,467 personal tax files. However, the latest data indicates a remarkable surge, with the number now approaching the one-million mark.
Moreover, the Department reported a notable up tick in the number of tax-paying companies.
This year has witnessed a commendable 10 percent increase, with the count rising from 73,444 registered tax-paying companies in 2022 to a current total of 81,909 as of November 30 2023 .
The Inland Revenue Department’s task of collecting over Rs 1 trillion from taxes on Income and profit of 219.000 individuals and companies next year will be a mission impossible, a former treasury secretary who wished to remain anonymous said.
The government will be taking several stringent measures including legal action against those who fail to file tax returns and make the Taxpayer Identification Number (TIN) mandatory for several transactions.
These transactions included the opening of a bank current account at any bank; obtaining approval for a building plan, by the applicant, registering a motor vehicle or renew license, by the owner and for the Register a land or title to a land, by the buyer.
A special penal provision will be introduced to prosecute persons who have failed to file tax returns and provide information required by the tax official
A unique identification number is to be made mandatory for the registration of businesses and all businesses including health services, educational services and law firms have to be registered with relevant authorities at the time of commencing their businesses
Everyone above the age of 18 years failing to obtain a Taxpayer Identification Number (TIN) would be liable to a fine of Rs 50,000, the Inland Revenue Department said
In addition, anyone earning an income of more than Rs. 1,200,000 a year of assessment (from April 01 to March 31 of the following year) has to register for Income Tax.
Failure to comply with the regulations would lead to a situation where the registration will be done by the Inland Revenue Department but with penalties not exceeding Rs. 50,000.
The TIN could be both obtained by visiting the IRD in person or online. To obtain a TIN through electronic service, every individual must submit PDF copies of the scanned images of both sides of his or her national identity card, the IRD has said.