1. Statutory Compliance Business Taxation - EDBA
Business School
CA Sri Lanka
Damith Gangodawilage
MBA, PGD (BFA), EDBA, FTII, HNDA, FMAAT, ACPM, AIPFM(UK)
Dy. Campus Director and Head of Academic
Secretary of the Executive Council – Sri Lanka Institute of Taxation
Statutory Compliance_Business Taxation

2. Statutory Compliance_Business Taxation
Chapter Outline.
Self-assessment scheme
Assessment & Appeal
PAYE Scheme
Damith Gangodawilage
Statutory Compliance_Business Taxation

3. Self-assessment Scheme
Introduction.
IRD Act impose a duty on every person or partnership
Compute and pay the income tax in quarterly installment.
Furnish a return of income either in writing or electronic mean
Once the above requirement meet, taxpayer discharge his compliance responsibility as imposed by the act.
Damith Gangodawilage
Statutory Compliance_Business Taxation

4. Self-assessment Scheme
Payment of tax.
A person liable to pay tax is required to pay in four quarterly installment.
1st Quarter - on or before 15th August
2nd Quarter - on or before 15th November
3rd Quarter - on or before 15th February of the next year
4th Quarter - on or before 15th May of the next year
Quarterly installment of tax for any YA shall be ¼ of the tax payable by him for the YA.
Damith Gangodawilage
Statutory Compliance_Business Taxation

5. Self-assessment Scheme
Amount of quarterly installment:
- Current year basis
- Preceding year basis
- Re-estimation on expiration of exemption
Discount for quarterly installment:
Where an individual pays a quarterly income tax payment 30 days prior to the due date shall deduct 10% such installment.
Damith Gangodawilage
Statutory Compliance_Business Taxation

6. Self-assessment Scheme
Tax in default:
Where the tax be paid in installment not paid on or before the due date become tax in default.
Defaulter:
The person who default the payment is deemed to be a defaulter. Where the tax is payable by more than one person or by partnership, each of such person or each partner shall be defaulter.
Damith Gangodawilage
Statutory Compliance_Business Taxation

7. Self-assessment Scheme
Once the tax payer discharge his duty in good faith, it is open to the assessor to accept or reject and estimate the amount of tax payable.
Similarly, if a person has not comply with the legal requirements of furnishing the return and payment of taxes result to issue the assessment.
Damith Gangodawilage
Statutory Compliance_Business Taxation

8. Self-assessment Scheme
Appeal:
When a person is assessed, it does not mean that he is liable to pay the tax so assessed. If he is not satisfied with the assessment, he has a right to appeal against the assessment. This has to be done within 30days after the notice of assessment.
Late appeal may allow under the following circumstances,
Absence from Sri Lanka
Sickness
Other reasonable cause
Damith Gangodawilage
VAT & NBT_Business Taxation

9. Statutory Compliance_Business Taxation
PAYE Scheme
Pay As You Earn (PAYE) scheme is system provide for whit holding of income tax at source at the time of payment of any profit from employment.
It is the obligation of every employer to deduct the tax from the remuneration from his employee at the time of payment of such remuneration.
Pl. refer employment income handout to get the meaning for employee and employer.
Damith Gangodawilage
Statutory Compliance_Business Taxation

10. Statutory Compliance_Business Taxation
PAYE Scheme
Duties of employer under PAYE Scheme:
Deduct correct amount of income tax
Pay all the tax deducted from employees remuneration to the CGIR on or before 15th day of the following month
Forward monthly statement
Furnish annual return on or before 30th April
Issue the income tax deduction certificate to employee before 30th April
Maintain the records on the prescribed forms
Damith Gangodawilage
Statutory Compliance_Business Taxation