Sri Lanka’s tax authority says intentional non-compliance may result in criminal action, while ordinary mistakes will continue to be handled through assessment and appeal procedures.
The Inland Revenue Department has warned that individuals and entities that deliberately fail to meet their tax obligations may face criminal prosecution under Sri Lanka’s amended tax law.
The clarification distinguishes intentional evasion from genuine errors. Taxpayers who make mistakes in declarations or calculations are generally expected to address them through assessments, amended filings, appeals or payment arrangements.
The tougher enforcement provisions are intended to improve compliance and protect revenue as the Government continues fiscal reforms. Their credibility will depend on consistent application, clear guidance and safeguards against arbitrary prosecution.
Taxpayers should retain supporting records, respond promptly to official notices and seek professional advice when dealing with disputed assessments or complex transactions.
