ACT, No. 23 OF 2011

23of2011.pdf
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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
TAX APPEALS COMMISSION
ACT, No. 23 OF 2011
[Certified on 31st March, 2011]
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 01, 2011
PRINTEDAT THE DEPARTMENTOFGOVERNMENT PRINTING, SRILANKA
TO BEPURCHASED AT THEGOVERNMENT PUBLICATIONSBUREAU, COLOMBO 5
Price : Rs. 5.00 Postage : Rs. 10.00

Tax Appeals Commission Act, No. 23 of 2011 1
[Certified on 31st March, 2011]
L.D.—O. 19/2011.
AN ACT TO PROVIDE FOR THE CONSTITUTION OF A TAX APPEALS
COMMISSION; TO SPECIFY THE POWERS OF SUCH COMMISSION AND
THE PROCEDURE TO BE FOLLOWED IN HEARING AND DISPOSING
OF SUCH APPEALS; AND TO PROVIDE FOR MATTERS CONNECTED
THEREWITH OR INCIDENTAL THERETO.
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows :—
1. This Act may be cited as the Tax Appeals Short title.
Commission Act, No. 23 of 2011.
2. (1) There shall be established a Commission to be Establishment of
called and known as the Tax Appeals Commission the Tax Appeals
Commission and
(hereinafter referred to as “the Commission”) which shall
its composition.
charged with the responsibility of hearing all appeals in
respect of matters relating to imposition of any tax, levy or
duty.
(2) The Commission shall comprise not more than three
members who shall be appointed from amongst retired Judges
of the Supreme Court and the Court of Appeal, persons who
have wide knowledge of, and have gained eminence in the
fields of Taxation, Finance and Law, by the Minister to
whom the subject of Finance is assigned. One of the members
shall be appointed as the Chairman of the Commission by
the Minister.
(3) Every member of the Commission shall hold office
for a term not exceeding three years, and shall be eligible for
reappointment.
3. There shall be a Secretary to the Commission who Secretary to the
shall be appointed by the Minister in charge of the subject Commission.
of Finance.
4. (1) The Minister shall appoint a Panel of Legal Panel of Legal
Advisors (hereinafter referred to as the “Panel”) comprising Advisors.
2—PL 005602 —4,090 (03/2011)
2 Tax Appeals Commission Act, No. 23 of 2011
not more than ten persons, who have gained eminence in the
field of Law, for the purpose of assisting the Commission in
the exercise, performance and discharge of powers, duties
and functions under this Act.
(2) Three or more members of the Panel shall be nominated
by the Minster to attend the hearings of the Commission
and assist in the progress of the appeal proceedings and
investigations if any, before such Commission.
Meetings of 5. At the request of the Chairman, the Secretary to the
Members of the Commission shall summon once a month a meeting of all
Commission and
the members of the Commission and the Panel. The quorum
the Panel.
for such meeting shall be five members.
Remuneration of 6. The members of the Commission and the Panel shall
the Members of be remunerated in such amount as shall be determined by
the Commission the Minister.
and the Panel.
Right to appeal 7. (1) A person who is aggrieved by the determination
to the of the Commissioner-General of Inland Revenue given in
Commission respect of any matter relating to imposition of any tax, levy
against the
or duty under the provisions of any of the enactments
decision given
under any law specified in the Schedule to this Act, may appeal to the
specified in the Commission in accordance with the provisions hereinafter
Schedule. set out:
Provided that, every person who wishes to appeal to
the Commission as provided for above, shall, at the time
of making the appeal, be required to pay into a special
account which shall be opened and operated by the
Commission for such purpose, an amount as is equivalent to
twenty-five per centum of the sum as assessed by the
Commissioner-General as being payable by such person as
tax under any of the said enactments and which assessment
is the subject of the appeal, or a bank guarantee for the
equivalent amount.
(2) A person to whom a right to appeal has accrued in
terms of the provisions of the enactments specified in the
Schedule to this Act, shall notify the Commission within
Tax Appeals Commission Act, No. 23 of 2011 3
thirty days of the determination being communicated to him
under the respective laws, of the fact that he intends to prefer
an appeal to the Commission against such determination.
He shall state all relevant details of the determination in
such notification including the name and address of his
authorized representative, if any.
(3) Where the aggrieved person has notified the
Commission in accordance with the provisions of subsection
(2) that he intends to prefer an appeal to the Commission
against such determination, the Commission shall forward a
copy of such notification to the Commissioner-General and
require him to transmit in writing, to the Commission and
the aggrieved party and his authorized representative, within
thirty days of receipt of the notification, his reasons for the
determination against which such person seeks to appeal.
(4) The manner and form of submitting an appeal under
this Act and the fees if any, payable in respect thereof, and
the time within which a petition ought to be preferred, shall
be as prescribed.
8. The person aggrieved may, if he is not satisfied with Procedure for
the reasons given by the Commissioner-General prefer an preferring an
appeal.
appeal therefrom, to the Commission, and the Commission
shall hear and determine such appeal in accordance with
such rules as may be made in that behalf.
9. (1) Within thirty days of the receipt of an appeal, the The hearing of
Secretary to the Commission shall fix a date and time and the appeal.
place for the hearing of the appeal, and shall give forty-two
days notice thereof, both to the appellant and to the
Commissioner-General.
(2) The Commissioner-General shall on receipt of a notice
under subsection (1), transmit to the Commission the extracts
of the provisions of the applicable enactments specified in
the Schedule to this Act and the record of evidence
maintained under such enactments.
4 Tax Appeals Commission Act, No. 23 of 2011
(3) Every appellant shall attend in person or by an
authorized representative, on the day fixed for the hearing
of the appeal by the Commission:
Provided that, where an authorized representative of the
appellant is present at the hearing of an appeal, the
Commission may postpone the hearing for such time as it
thinks necessary to enable the attendance in person, of the
appellant.
(4) The Assessor who made the assessment appealed
against or a person authorized by the Commissioner-General
in that behalf, shall attend the hearing of the Commission at
which such appeal is heard, in support of the determination
of the Commissioner-General.
(5) The onus of proving that the assessment as determined
by the Commissioner-General in terms of the respective
enactments specified in the Schedule to the Act, is excessive
or erroneous, shall be on the appellant.
(6) All appeals shall be heard in camera.
(7) The Commission shall have power to summon to a
hearing, the attendance of any person whom it considers
capable of giving evidence respecting the appeal and may
examine him as a witness, either on oath or otherwise. Any
person so attending may be allowed by the Commission to
be paid any reasonable expenses necessarily incurred by
him in so attending.
(8) Except with the consent of the Commission and on
such terms as the Commission may determine, the appellant
shall not at the hearing, be allowed to produce any document
which was not produced before the Commissioner-General,
or to adduce the evidence of any witness whose evidence
was not led before the Commissioner-General, or adduce
evidence of a witness whose evidence has already been
recorded at the hearing before the Commissioner-General.
Tax Appeals Commission Act, No. 23 of 2011 5
(9) At the hearing of the appeal the Commission may,
admit or reject any evidence adduced whether oral or
documentary, and the provisions of the Evidence Ordinance
relating to the admissibility of evidence shall not apply in
respect of such evidence.
(10) After hearing the evidence, the Commission shall on
appeal either confirm, reduce, increase or annul, as the case
may be, the assessment as determined by the Commissioner-
General or may remit the case to the Commissioner-General
with the decision of the Commission on such appeal. Where
a case is so remitted by the Commission, the Commissioner-
General shall revise the assessment in order that it is in
conformity with such amount 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.
10. The Commission shall hear all appeals received by Determination
it and make its decision in respect thereof, within one hundred of appeals by
the Commission.
and eighty days from the date of the commencement of the
hearing of the 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 the Schedule to this Act,
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 make its
decision in respect thereof, within hundred and eighty days
from the date of such transfer notwithstanding anything
contained in any other written law.
11. Where under subsection (10) of section 9 the Costs to be
Commission does not reduce or annul an assessment in recovered with
assessment if
respect of which an appeal had been preferred in terms of Commission
this Act, the Commission may order the appellant to pay as does not reduce
costs a sum not exceeding rupees five thousand, in addition or annul the
to the assessed amount, which shall be added to the tax assessment.
charged by the assessment, and recovered therewith.
6 Tax Appeals Commission Act, No. 23 of 2011
No suit or 12. No suit or prosecution shall lie against any member,
prosecution to
officer or servant of the Commission for any lawful act done
lie.
or omitted to be done in good faith under this Act or which
is done on the directions of the Commission.
Repeals. 13. The provisions of the enactments specified in
Column I of the Schedule to this Act, are hereby amended or
repealed in the sections or parts thereof as are specified in
Column II of the Schedule to the extent and in the manner as
shall be specified in Column III of such Schedule.
Sinhala text to 14. In the event of any inconsistency between the
prevail in case
Sinhala and Tamil texts of this Act, the Sinhala text shall
of inconsistency.
prevail.

Tax Appeals Commission Act, No. 23 of 2011 7
SCHEDULEAA
Column I Column II Column III
Names of Sections or parts Applicable
Enactment to be amended Amendment
1. Inland Revenue Sections 166,167, The Inland Revenue
Act, No. 10 of 168, 169 Act is hereby amended
2006 by the repeal of
section 166, section
167, section 168 and
section169.
2. Value Added Tax Sections 35, The Value Added Tax
Act, No. 14 of 35(1A), 36 Act is hereby amended
2002 by the repeal of
section 35, section
35(1A) and section 36.
3. Nation Building Section 8 Section 8 of the Nation
Tax Act, No. 9 of Building Tax Act is
2009 hereby amended by
the omission therefrom
of the words and
figures “Chapter XXIII
relating to Appeals”.
4. Economic Service Section 11 Section 11 of the
Charge Act, No. Economic Service
13 of 2006 Charge Act is hereby
amended by the
omission therefrom of
the word “Appeals”.

8 Tax Appeals Commission Act, No. 23 of 2011
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