ACT, No. 20 OF 2013

20of2013.pdf
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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
TAX APPEALS COMMISSION
(AMENDMENT) ACT, No. 20 OF 2013
[Certified on 24th April, 2013]
Printed on the Order of Government
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lanka of April 26, 2013
PRINTEDATTHE DEPARTMENTOFGOVERNMENTPRINTING,SRILANKA
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Tax Appeals Commission (Amendment) 1
Act, No. 20 of 2013
[Certified on 24th April, 2013]
L.D.—O. (9/2013).
ANACT TO AMEND THE TAX APPLEALS COMMISSION
ACT, NO. 23 OF 2011
BE it enacted by the Parliament of the Democratic Socialist Short title.
Republic of Sri Lanka as follows:-
1. This Act may be cited as the Tax Appeals Commission Amendment of
(Amendment) Act, No. 20 of 2013. section 2 of the
Tax Appeals
Commission
2. Section 2 of the Tax Appeals Commission Act, Act, No.23 of
No. 23 of 2011 (hereinafter referred to as the “principal 2011.
enactment”) as last amended by the Tax Appeals Commission
(Amendment) Act, No.4 of 2012 is hereby further amended
as follows:-
(1) in subsection (2) thereof, by the substitution for the
words “not more than three members one of whom
shall be” and the words “two other members” of the
words “not more than nine members three of whom
shall be” and “six other members” respectively.
(2) by the addition, immediately after subsection (2)
thereof of the following new subsection:-
“(2A) The Chairman of the Commission shall
constitute three panels comprising three members
each, from among the members appointed under
subsection (2) one of whom shall be a Judge as
specified in subsection (2) to hear and determine
any matter before the Commission.”.
3. Section 5 of the principal enactment is hereby Amendment of
amended by the substitution for the words “shall be five section 5 of the
principal
members.” of the words “shall be seven members.”. enactment.
2—PL 007104—4090 (03/2013)
2 Tax Appeals Commission (Amendment)
Act, No. 20 of 2013
Amendment of 4. Section 7 of the principal enactment as last amended
section 7 of the
by the Tax Appeals Commission (Amendment) Act, No.4 of
principal
enactment. 2012 is hereby further amended as follows:-
(1) by the repeal of subsection (1) thereof and the
substitution therefor of the following:-
“(1) A person who is aggrieved by the
determination –
(a) of the Commissioner-General of Inland
Revenue appointed in terms of the Inland
Revenue Act, (hereinafter referred to as the
“Commissioner-General”) given in
respect of any matter relating to imposition
of any tax, levy, charge, duty or penalty
under the provisions of any of the
enactments specified in Column I of
Schedule I, or Schedule II to this Act; or
(b) of the Director-General of Customs
(hereinafter referred to as the “Director-
General”) given in respect of any matter
specified in subsection (1A) of section 10
of the Customs Ordinance (Chapter 235),
may appeal to the Commission in accordance with
the provisions hereinafter set out:
Provided that, every person who wishes to
appeal to the Commission under paragraph (a)
shall, at the time of making of such appeal, be
required to pay into a special account which shall
be opened and operated by the Commission for
such purpose, an amount-
(a) as is equivalent to ten per centum which is
non-refundable; or
Tax Appeals Commission (Amendment) 3
Act, No. 20 of 2013
(b) as is equivalent to twenty five per centum
which is refundable subject to subsection
(1A) of this section or a bank guarantee for
the equivalent amount which shall remain
valid until the appeal is determined by the
Commission,
of the sum as assessed by the Commissioner-General
as being payable by such person as tax, levy, charge,
duty or penalty under any of the said enactments
and which assessment is the subject of the appeal.”;
(2) by the insertion immediately after subsection (1)
thereof, of the following new subsection:-
“(1A) (a) The amount referred to in paragraph
(a) or (b) of the proviso to subsection (1), as the
case may be, shall be transferred to the
Commissioner-General upon the determination of
the respective appeal to which such amount is
applicable and which shall be set off against the
sum as assessed by the Commissioner-General as
being payable by such person as tax, levy, charge,
duty or penalty under any of the said enactments
and which assessment is the subject of the appeal.
(b)Any excess of the amount referred to in
paragraph (b) of the proviso to subsection (1), may
be set off against the taxes due and which are
administrated by the Commissioner-General.
Where any balance if any of such amount shall be
refunded to the appellant on request made in that
behalf in writing to the Commissioner-General.”;
(3) in subsection (2) of that section, by the substitution
for the words and figures “specified in Column I of
Schedule I and Schedule II to this Act” of the words
and figures “specified in paragraphs (a) and (b) of
subsection (1) of section 7 ”;
4 Tax Appeals Commission (Amendment)
Act, No. 20 of 2013
(4) in subsection (3) of that section, by the substitution
for the words “notification to the Commissioner-
General” of the words “notification to the
Commissioner-General or the Director-General, as
the case may be.”.
Repeal and 5. Section 8 of the principal enactment as last amended
replacement of by the Tax Appeals Commission (Amendment) Act, No. 4 of
section 8 of the
2012 is hereby repealed and the following is substituted
principal
enactment. therefor :-
“Procedure 8. (1) Any person aggrieved by the
for determination of—
preferring an
appeal.
(a) the Commissioner-General, in
respect of any matter relating to the
imposition of any tax, levy, charge,
duty or penalty; or
(b) the Director-General under
subsection (1B) of section 10 of the
Customs Ordinance (Chapter 235),
may if he is dissatisfied with the reasons stated
by the Commissioner-General or the Director-
General, as the case may be, prefer the appeal
therefrom to the Commission within thirty days
from the date of receipt of such reasons; or
(2) Where the Director-General fails to give
such determination within the time period
specified in subsection (1B) of section 10 of
the said Ordinance, such person also may
appeal to the Commission at the expiration of
the time period specified in subsection (1B) of
section 10 of the said Ordinance.
(3) The manner and the form of submitting
such appeal, the procedure to be followed by
the Commission in the hearing and
Tax Appeals Commission (Amendment) 5
Act, No. 20 of 2013
determining of such appeal and the fees if any
in respect thereof shall be determined by the
Commission by rules made, from time to time,
in that behalf.”.
6. Section 9 of the principal enactment as last amended Amendment of
section 9 of the
by the Tax Appeals Commission (Amendment) Act, No.4 of
principal
2012 is hereby further amended as follows:- enactment.
(1) in subsection (1) thereof, by the substitution for the
words “to the Commissioner-General.” of the words
“to the Commissioner-General or the Director-
General, as the case may be.”;
(2) in subsection (2) thereof, by the substitution for the
words “The Commissioner-General shall” and the
words and figures “specified in Column I of
Schedule I and Schedule II to this Act”, of the
words “The Commissioner-General or the Director-
General, as the case may be, shall” and the words
and figures “specified in Column I of Schedule I or
Schedule II to this Act or any applicable provisions
of the Customs Ordinance (Chapter 235), as the
case may be,”;
(3) by the repeal of subsection (4) thereof and the
substitution therefor of the following:—
“(4) (a) in respect of an appeal under paragraph
(a) of subsection (1) of section 7, the
Assessor who made the assessment
appealed aginst or a person authorized
by the Commissioner-General in that
behalf; or
(b) in respect of an appeal under paragraph
(b) of subsection (1) of section 7, any
officer authorized by the Director-
General in that behalf,
Shall attend the hearing of the Commission at which
such appeal is heard, in support of the determination
6 Tax Appeals Commission (Amendment)
Act, No. 20 of 2013
of the Commissioner-General or the Director-
General, as the case may be.”.
(4) in subsection (5) thereof, by the substitution for the
words and figures “specified in Column I of
Schedule I and Schedule II to this Act,” of the words
“specified in Column I of Schedule I or Schedule II
to this Act,”;
(5) in subsection (8) thereof, by the substitution for the
words “Commissioner-General” wherever those
words appear of the words “Commissioner-General
or the Director-General, as the case may be,”
(6) in subsection (10) thereof, by the substitution for
the words “as stated in the decision of the
Commission. The decision of the Commission shall
be notified to the appellant and the Commissioner-
General in writing.” of the words “as stated in the
decision of the Commission.”
(7) by the addition immediately after subsection (10)
thereof the following:—
“(11) The decision of the Commission shall be
final and be notified to the appellant, and the
Commissioner-General or the Director-General as
the case may be.”.
Amendment of 7. Section 10 of the principal enactment as last amended
section 10 of the by the Tax Appeals Commission (Amendment) Act, No.4 of
principal
2012 is hereby amended by the substitution for all the words
enactment.
commencing from “two hundred and seventy days” to the
end of that section, of the following:-
“two hundred and seventy days from the date of the
commencement of its sittings for the hearing of each
such appeal:
Provided that, all appeals pending before the
respective Board or Boards of Review in terms of the
provisions of the respective enactments specified in
Tax Appeals Commission (Amendment) 7
Act, No. 20 of 2013
Column I of Schedule I, or Schedule II to this Act,
notwithstanding the fact that such provisions are
applicable to different taxable periods as specified
therein shall with effect from the date of coming
into operation of the provision of this Act be deemed
to stand transferred to the Commission, and the
Commission shall notwithstanding anything
contained in any other written law make its
determination in respect thereof, within twenty four
months from the date on which the Commission shall
commence its sittings for the hearing of each such
appeal.”.
8. The following new section is hereby inserted Insertion of new
immediately after section 11 of the principal enactment and section 11A in
the principal
shall have effect as section 11A of that enactment:-
enactment.
“Appeals on 11A. (1) Either the person who preferred an
a question of appeal to the Commission under paragraph (a)
law to the
of subsection (1) of section 7 of this Act
Court of
Appeal. (hereinafter in this Act referred to as the
“appellant”) or the Commissioner-General may
make an application requiring the Commission
to state a case on a question of law for the
opinion of the Court of Appeal. Such
application shall not be entertained unless it is
made in writing and delivered to the secretary
to the Commission, together with a fee of one
thousand and five hundred rupees, within one
month from the date on which the decision of
the Commission was notified in writing to the
Commissioner-General or the appellant, as the
case may be.
(2) The case stated by the Commission shall
set out the facts, the decision of the Commission,
and the amount of the tax in dispute where such
amount exceeds five thousand rupees, and the
party requiring the Commission to state such
case shall transmit such case, when stated and
signed to the Court of Appeal, within fourteen
days after receiving the same.
8 Tax Appeals Commission (Amendment)
Act, No. 20 of 2013
(3) For the purpose of the application of the
provisions of the Stamp Duty Act, No. 43 of
1982 –
(a) all proceedings before the Court of
Appeal on any case stated under this
section or incidental to the hearing,
determination or disposal of any
such case, shall be deemed to be civil
proceedings before the Court of
Appeal of the value of five thousand
rupees or of such greater amount as
is set out by the Commission in the
stated case as the amount of the tax
in dispute;
(b) every such case stated shall, together
with all books, documents and
papers annexed thereto by the
Commission, be deemed to be a
single exhibit in civil proceedings
before the Court of Appeal; and
(c) the Commissioner-General, if he is
the appellant, shall be deemed to be
a Government officer suing, or if he
is the respondent to the appeal, a
Government officer being sued, in a
suit virtue offcii.
(4) At or before the time when he transmits
the stated case to the Court of Appeal, the party
requiring it shall send to the other party, a
notice in writing informing him that a case has
been stated on his application and shall supply
him with a copy of the stated case.
(5) Any two or more Judges of the Court of
Appeal may cause a stated case to be sent back
to the Commission for amendment, and the
Commission shall amend the case accordingly.
Tax Appeals Commission (Amendment) 9
Act, No. 20 of 2013
(6) Any two or more Judges of the Court of
Appeal may hear and determine any question
of law arising on the stated case and may in
accordance with the decision of Court upon
such question, confirm, reduce, increase or
annul the assessment determined by the
Commission, or may remit the case to the
Commission with the opinion of the Court,
thereon. Where a case is so remitted by the
Court, the Commission shall revise the
assessment in accordance with the opinion of
the Court.
(7) The Court of Appeal may, pending the
determination of the case stated to such Court,
make an interim determination as regards the
amount of tax recoverable by the
Commissioner-General in respect of the
amount of tax in dispute, on the basis of a report
furnished by the Commissioner-General.
(8) In any proceedings before the Court of
Appeal under this section, the Court may make
such order in regard to costs in the Court of
Appeal and in regard to the sum paid under
subsection (1), as the Court may deem fit.
(9) For the purposes of enabling the
Commissioner- General or any other party to
appeal to the Supreme Court against any order
of the Court of Appeal under subsection (6),
and for the purpose of the application of the
provisions of any written law relating to appeals
to the Supreme Court from the decisions of the
Court of Appeal –
(a) an order made by the Court of Appeal
under subsection (6) shall, together
10 Tax Appeals Commission (Amendment)
Act, No. 20 of 2013
with any order of that Court under
subsection (8), be deemed to be a final
judgment of the Court of Appeal in a
civil action between the Commissioner-
General and such other party;
(b) the value of the matter in dispute in
such civil action shall be deemed to be
five thousand rupees:
Provided that, where the
Commission in the stated case, set
out an amount higher than five
thousand rupees as the amount of
the tax in dispute, the value of the
matter in dispute in such civil action
shall be deemed to be that higher
amount; and
(c) in respect of any such appeal, the
Commissioner-General shall not be
required to make any deposit or pay
any fee or furnish any security
prescribed by such written law.”.
Replacement of 9. Section 13 of the principal enactment is hereby
section 13 of the amended by the repeal of that section and the substitution
principal
therefor of the following:-
enactment.
“Repeals. 13. The provisions of the enactments
specified in Column I of Schedule I are hereby
amended or repealed in the sections or parts
thereof as are specified in Column II of that
Schedule to the extent and in the manner as
shall be specified therein.”.
Repeal of 10. Section 13A of the principal enactment is hereby
section 13A of repealed.
the principal
enactment.
Tax Appeals Commission (Amendment) 11
Act, No. 20 of 2013
11. The following new section is hereby inserted Insertion of new
section 13A in
immediately after section 13 of the principal enactment and
the principal
shall have effect as section 13A of that enactment:— enactment.
“Interpretation. 13A. For the purposes of this Act, unless the
context otherwise requires—
“Assessor” shall have the same meaning as
assigned to it in the Inland Revenue
Act;
“Inland Revenue Act” means the Inland
Revenue Act, No. 10 of 2006 and
includes where necessary and
appropriate, the Inland Revenue Act,
No. 28 of 1979 and Inland Revenue
Act, No. 38 of 2000.”.
12. The Schedule I of the principal enactment is hereby Replacement of
Schedule 1 of
repealed and the following new Schedule is substituted
the principal
therefor:- enactment.
“Schedule I
Column I Column II
Names of Enactments Applicable Amendment
1.Inland Revenue Act, (a) by the repeal of sections 166, 167,
No. 10 of 2006 168, 169 and 170; and
(b) by the substitution in subsection
(2) and (3) of section 172 thereof
for the words “Board of Review”
of the words and figures “Tax
Appeal Commission established by
the Tax Appeals Commission Act,
No.23 of 2011”.
12 Tax Appeals Commission (Amendment)
Act, No. 20 of 2013
Inland Revenue Act, (a) by the repeal of sections 137, 138,
No.38 of 2000 139, 140 and 141 ; and
(b) by the substitution in subsection
(2) and (3) of section 143 thereof
for the words “Board of Review”
of the words “Tax Appeals
Commission established by the Tax
Appeals Commission Act, No.23
of 2011”.
Inland Revenue Act, (a) by the repeal of sections 118, 119,
No.28 of 1979 120, 121 and 122; and
(b) by the substitution in subsection
(2) and (3) of section 124 thereof
for the words “Board of Review”
of the words “Tax Appeal
Commission established by the Tax
Appeals Commission Act, No.23
of 2011”.
2.Value Added Tax by the repeal of sections 35 and 36
Act, No.14 of 2002
3.Nation Building Tax Section 8 is hereby amended by
Act, No.9 of 2009 the substitution for the words and
figures “Chapter XXII relating to
appeals other than sections 166,
167, 168 and 169 of the words and
figures “Chapter XXIII relating to
appeals other than sections 166,
167, 168, 169 and 170.”
4.Economic Service Section 11 is hereby amended by
Charge Act, No.13 the substitution for the words
of 2006 “relating respectively to appeals”
of the words and figures “relating
respectively to appeals other than
the provisions in sections 166, 167,
168, 169 and 170”
5. Stamp Duty (Special Section 11 of the Stamp Duty
Provisions) Act, No. (Special Provisions) Act is hereby
12 of 2006. amended by the substitution for the
words “Chapters XVIII to XXIV
of the Inland Revenue Act relating
to Assessment, Appeals,
Determination of Appeals” of the
words “Chapters XVIII to XXIV
of the Inland Revenue Act relating
to Assessments, Appeals,
Determination of Appeals, other
than sections 166, 167, 168, 169
and 170 relating to appeals to
Board of Review”
Tax Appeals Commission (Amendment) 13
Act, No. 20 of 2013
13. Schedule II of the principal enactment is hereby Amendment of
amended by the insertion immediately after item 2, of the Shedule II of the
principal
following:-
enactment.
“3. Finance Act, No.11 of 2004.
4. Debits Tax Act, No.16 of 2002.”.
14. (1) The amendments made to the principal enactment Retrospective
[other than the amendments made to section 2, the proviso effect.
to subsection (1) of section 7 and the amendments made in
relation to the appeals under the Customs Ordinance
(Chapter 235)] by the provisions of this Act shall be deemed
for all purposes to have come into force on April 1, 2011.
(2) The amendment made to section 2 of the principal
enactment by the Tax Appeals Commission Act, No.4 of
2012 shall be deemed for all purposes to have come into
force on March 31, 2011 and any act or decision made by
the Commission during the period commencing on March
31, 2011 up to the date of coming into operation of this Act
shall be deemed to have for all purposes to have been validly
made.
15. For the avoidance of doubts, it is hereby declared, Avoidance of
that the Commission shall have the power in accordance doubts.
with the provisions of the principal enactment as amended
by this Act, to hear and determine any appeal that was deemed
transferred to the Commission under section 10 of the
principal enactment, notwithstanding the expiry of the
twelve months granted for its determination by that sectoin,
prior to its amindment by this Act.
16. In the event of any inconsistency between the Sinhala text to
prevail in case
Sinhala and Tamil texts of this Act, the Sinhala text shall
of inconsistency.
prevail.

14 Tax Appeals Commission (Amendment)
Act, No. 20 of 2013
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