Finance act, which paves way to legalize undisclosed assets, is in effect

COLOMBO (News 1st): The Finance Bill No. 18 of 2021 was certified by Speaker Mahinda Yapa Abeywardena on the 15th of September 2021.

The Bill was taken up for debate on the 07th September and was passed in Parliament with amendments. 134 votes were cast in favor of the Bill and 44 votes were cast against the Bill.

The vote took place as a division was called for by the Hon. Chief Opposition Whip Lakshman Kiriella during the second reading of the Finance Bill.

Accordingly, this Act will come into force from today (15).

The Finance Bill was moved to enable persons to voluntarily disclose undisclosed taxable supplies, income, and assets required to be disclosed under certain laws as well as to provide for the imposition of a tax on the taxable supplies, income, and assets so disclosed.

The specialty of this bill is that it provides an opportunity to invest an amount equal to the undisclosed tax value, in;

01 Shares issued by a company

02 Treasury Bills issued by the Central Bank

03 Credit securities issued by a company in Sri Lanka and

04 Movable or immovable property

The relevant investments in this Bill can be made before 31st December.

If a person who does not invest and does not disclose any taxes voluntarily, discloses them, only 1% extra will be added to the amount of tax payable.

A number of parties including the Samagi Jana Balavegaya and the JVP filed applications with the Supreme Court challenging the bill.

This bill was passed in Parliament subject to the guidelines given by the Supreme Court.