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Short title.
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1. This Act may be cited as the Surcharge on Income Tax Act, No, 7 of 1989.
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Imposition of the surcharge on Income tax.
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2. Every person who, under the Inland Revenue Act, is chargeable with income tax for any year of assessment commencing on or after April 1, 1989, but ending not later than March 31, 1996, (hereinafter in this Act referred to as “a relevant year”) shall, notwithstanding anything contained in any other written law be liable to pay a surcharge on the income tax payable by him for a relevant, year (hereinafter in this Act referred to as ” the surcharge “), calculated at the rate of fifteen per centum of the income tax payable by such person for that relevant year.
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Dates for payment of the surcharge.
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3. Every person who is liable to pay e surcharge under this Act, shall notwithstanding that no assessment has been made on him, pay to the Commissioner-General”
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(i)
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(a) not less than fifty per centum, on or before August 15, 1989 and
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(b) the balance on or before November 15, 1989,
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of the amount of the surcharge payable by him for the relevant year commencing on April 1, 1989,
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(ii)
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(a) not less than fifty per centum on or before August 15, 1.990, and
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(b) the balance on or before November 15, 1990,
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of the amount of the surcharge payable by him for the relevant year commencing on April 1, 1991 ; and
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(iii)
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(a) not less than fifty per centum, on or before August 15, 1991; and
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(b) the balance, on or before November 15, 1991,
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of the amount of the surcharge payable by him for the relevant year commencing on April 1, 1991.
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(iv)
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(a) not less than fifty per centum,, on or before August 15, 1992 ; and
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(b) the balance, on or before November 15, 1992,
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of the amount of the surcharge payable by him for the relevant year commencing on April 1, 1992;
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(v)
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(a) not less than fifty per centum, on or before August 15, 1993 ; and
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(b) the balance on or before November 15, 1993
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of the amount of the surcharge payable by him for the relevant year commencing on April 1, 1993;
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(vi)
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(a) not less than fifty per centum, on or before August 15, 1994; and
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(b) the balance, on or before November 15, 1994,
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of the amount of the surcharge payable by him for the relevant year commencing on April 1, 1994; and
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(vii)
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(a) not less than fifty per centum, on or before August 15,1995, and
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(b) the balance, on or before November 15, 1995,
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of the amount of the surcharge payable by him for the relevant year commencing on April 1,1995.
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Employer to deduct the surcharge.
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4. Every employer who employs any employee from whose remuneration income tax for any relevant, year is deductible, in accordance with the provisions of Chapter XV of the Inland Revenue Act (not being an employee who is deemed by subsection (7) of section 67 of that Act, to he a non-resident) shall also deduct”
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(a) for the relevant year commenting on April 1, 1989,”
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(i) from the remuneration payable to such employee for the month of July 1989, 7 1/2 per centum, and
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(ii) from the remuneration payable to such employee for the month of October 1989 7 1/2 per-centum, of the total income; tax deductible from the remuneration of that employee for that year ;
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(b) for the relevant year commencing on April 1, 1990,
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(i) from the remuneration payable to such employee for the month of July 1990, 7 1/2 per centum, and
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(ii) from the remuneration payable to such employee for the month of October 1990, 74 per centum of the total income tax deductible from the remunerations of that employee for that year as the surcharge payable under this Act.
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Where however, the aggregate of the deduction made under this section by any employer, from the remuneration payable to any employee in his employment for the months of July and October in any relevant year, is less than fifteen per centum of the income tax deducted from the remuneration of such employee for that relevant year, the employer shall deduct a further amount equal to the amount ox the deficit, from the remuneration payable to that employee for the month of March in that relevant year.
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(c) for the relevant year commencing on April: 1991
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(i) from the remuneration payable to sue employee for the month of July, 71/2 per centum; and
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(ii) from the remuneration payable to employee for the month of October 1991 7 1/2 per centum
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of the total income tax deductible from the remuneration of that employee for that year;
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(d) for the relevant year commencing on April 1, 1992
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(i) from the remuneration payable to such employee for the month of July. 1992, 7 per centum; and
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(ii) from the remuneration payable to such employee for the month of October. 1992, 7 1/2 per centum,
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of the total income tax deductible from the remuneration of that employee for that year;
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(e) for the relevant year commencing on April 1, 1993
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(i) from the remuneration payable to such employee for the month of July, 1993, 7 1/2 per centum; and
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(ii) from the remuneration payable to such employee for the month of October, 1993, 7 1/2 per centum,
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of the total income tax deductible from the remuneration of that employee for that year;
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(f) for the relevant year commencing on April
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(i) from the remuneration payable to such employee for the month of July, 1994, 7 1/2 per centum; and
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(ii) from the remuneration payable to such employee for the month of October, 1984, 7 per centum,
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of the total Income tax deductible from the remuneration of that employee for that year; and
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(g) for the relevant year commencing on April 1, 1995-
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(i) from the remuneration payable to such employee for the month of July, 1995, 7 1/2 per centum; and
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(ii) from the remuneration payable to such employee for the month of October, 1995, 7 1/2 per centum,
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of the total income tax deductible form the remuneration of that employee for that year.
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Surcharge in default and sums added-thereto.
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5.
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(1) Where an installment of the surcharge payable for a relevant year or a part of such installment is not paid on or before the dates specified in, section 3 for the payment of that installment, such installment of the surcharge or part thereof, shall be deemed to be in default and-
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(a) where the surcharge is payable by one person, such person ; and
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(b) where the surcharge is payable by more than one person or by a partnership, each of such persons or each partner in such partnership, shall be deemed to be a defaulter for the purposes of this Act.
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(2) Where any surcharge payable by any person for a relevant year is in default, the defaulter shall, in addition to the surcharge in default, pay as a penalty”
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(a) a sum equal to five per centum of: the amount in default ; and
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(b) where any amount in default is not paid before the expiry of thirty days after it has begun to be in default, a further sum equivalent to five per centum of the amount in default in respect of each further period of three months or part of such, period during which it is in default:
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Provided that”
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(i) the total amount payable as a penalty under the preceding provisions of this section shall in no case exceed fifty per centum of the surcharge in default;
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(ii) where any person who is liable to pay the surcharge under this Act for a relevant year pays as such surcharge
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(a) for the relevant year commencing on April 1, 1989-
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(i) not less than 7 1/2 per centum on or before August 15, 1989, and
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(ii) not less than 7 1/2 per centum on or before November 15, 1989,
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of the income tax payable by him under the Inland Revenue Act, for the year of assessment commencing on April 1, 1988;
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(b) for the relevant year commencing on April 1, 1990-
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(i) not less than 7 1/2 per centum on or before August 15, 1990, and
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(ii) not less than 7 1/2 per centum on or before November 15, 1990,
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of the income tax payable by him under the Inland Revenue Act for the year of assessment commencing on April 1, 1989;
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(c) for the relevant year commencing on April 1, 1991-
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(i) not less than 7 1/2 per centum on or before August 15, 1991, and
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(ii) not less than 7 1/2 per centum on or before November 15, 1991,
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of the income tax payable by him under the Inland Revenue Act for the year of assessment commencing on April 1,1990, and
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(d) for the relevant year commencing on April 1, 1992-
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(i) not less than 7 1/2 per centum on or before August 15, 1992, and
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(ii) not less than 7 1/2 per centum on or before November 15, 1992,
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of the income tax payable by him under the Inland Revenue Act for the year of assessment commencing on April 1, 1991,
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(e) for the relevant year commencing on April 1, 1993-
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(i) not less than 7 1/2 per centum on or before August 15, 1993, and
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(ii) not less than 7 1/2 per centum on or before November 15, 1993,
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of the income tax payable by him under the Inland Revenue Act, for the year of assessment commencing on April 1, 1992
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(f) for the relevant year commencing on April 1, 1994-
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(i) not less than 7 1/2 per centum on or before August 15, 1994, and
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(ii) not less than 7 1/2 per centum on or before November 15, 1994,
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of the income tax payable by him under the Inland Revenue Act, for the year of assessment commencing on April 1, 1993,
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(g) for the relevant year commencing on April 1, 1995-
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(i) not less than 7 1/2 per centum on or before August 15, 1995, and
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(ii) not less than 7 1/2 per centum on or before November 15, 1995,
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of the income tax payable by him under the Inland Revenue Act, for the year of Assessment commencing on April 1, 1994,
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such person shall not be liable to any penalty under this section, in respect of the payments he is required to make under section 3 if he pays the excess of the surcharge payable by him for that relevant year over the amount paid by him, on or before
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November 30, 1990, in the case of relevant year commencing on April 1,1989,
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November 30, 1991, in the case of relevant year commencing on April 1, 1990,
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November 30, 1992, in the case of the relevant year commencing on April 1, 1991, and
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November 30, 1993, in the case of the relevant year commencing on April 1, 1992,
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November 30, 1994, in the case of the relevant year commencing on April 1, 1993,
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November 30, 1995, in the case of the relevant year commencing on April 1, 1994.
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November 30, 1996, in the case of the relevant year commencing on April 1, 1995.
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(iii) the Commissioner-General may reduce or waive any penalty payable under this section if it appears to him that such reduction or waiver is just and equitable in all the circumstances of the case.
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Certain provisions of the Inland Revenue Act to apply.
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6. The provisions of Chapter XIII and Chapter XV to Chapter XIX and Chapters XXI to XXVI of the Inland Revenue Act, relating to the furnishing of returns relating to income tax payable under that Act, the deduction of income tax assessment, appeals against assessment, payment, recovery and refund of such tax shall, mutatis mutandis, apply to the furnishing of returns relating to a surcharge payable under this Act, and the deduction, assessment, appeals against assessment, payment, recovery and refunds. of such surcharge subject to the following modifications : –
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(a) the requirement imposed by this Act, on any person to furnish a return of the surcharge payable by him under this Act, for any relevant year shall be deemed to have been sufficiently complied with ii such person furnishes a return of his income for that year under section 92(1) or section 92(2) of the Inland Revenue Act;
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(b) where an Assessor makes an assessment or an additional assessment on any person, of the income tax payable by such person under the Inland Revenue Act for any relevant year, the Assessor may, at the same time and in the same form, make an assessment or additional assessment, as the case may be, of the surcharge payable by such person, for that year under this Act, ‘The assessments or additional assessments, as the case may be shall, be deemed to be separate assessments issued under the respective Acts;
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(c) where notice of assessment is given to any person under section 116 of the Inland, Revenue Act stating the amount of income tax charged on such person under the Inland Revenue Act, for any relevant, year, such notice may also Include the amount of the surcharge charged on such person under this Act, for that year. The notices shall be deemed to be separate notices issued under the respective Acts;
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(d) where an appeal, is made against an assessment of income tax payable under the Inland Revenue Act for any relevant year, such appeal shall be deemed to include an appeal against the surcharge payable under this Act, for that year and shall be determined accordingly ; and
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(e) where under Chapter XXI of the Inland Revenue Act, a certificate is issued to a Magistrate or a notice, statement or certificate is issued to any person, such notice, statement or certificate, as the case may be, may also include the particulars of any surcharge in default under this Act. The notices, statements of certificates, as the case may be, shall be deemed to be separate notices, statements or certificates issued under the respective Acts.
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Sinhala text to prevail in case of inconsistency.
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7. In the event of any inconsistency between Sinhala and Tamil texts of this Act, the Sinhala text shall prevail.
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8. In this Act, unless the context otherwise requires”
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“assessable income”, “Assessor’ “Commissioner-General”, “non-resident company”, “profits and income”, “resident company”, and
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“year of assessment” have the respective meanings assigned to them in the Inland Revenue Act;
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“employer”, ‘”employee” and
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“remuneration” have the respective meanings assigned to them in Chapter XV of the Inland Revenue Act; ‘
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“income tax” in section 2 and with reference to any per son and any relevant
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(i) in relation to a resident company-
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(a) for any relevant year commencing prior to April 1, 1993, means the income tax payable under paragraph (a) of subsection (1) of section 33 of the Inland Revenue Act, by that company for that relevant year ; and
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(b) for the relevant year commencing respectively, on April 1, 1993, April 1, 1994 and April 1, 1995 means the income tax payable under the Inland Revenue Act, by that company for that relevant year, after deducting therefrom the aggregate of-
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(i) any income tax payable by that company for that year under paragraph (b) of subsection (1) of section 33, and
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(ii) any relief granted for that year under section 82 or section 83 and any deduction allowed under section 85A of that Act.
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(ii) in relation to a non-resident company means the income tax payable, under the Inland Revenue Act, by that company for that relevant year less any income tax payable by that company for that year, under sub-paragraph (a) or sub-paragraph (ii) of paragraph (i) of subsection (1) of section 34 of that Act ;
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(iii) in relation to a resident individual whose profits and income for that relevant year include any profits from employment referred to in paragraph (c) of section 4 of the Inland Revenue Act, means such income tax as would have been payable, under the Inland Revenue Act, by such individual had such profits from employment not formed part of his profits und income for that relevant year;
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(iv) in relation to an individual who is deemed by subsection (7) of section 67 of the Inland Revenue Act to be a non-resident, means such Income tax as would have been payable, under the Inland Revenue Act, by such individual had his profits from employment in Sri Lanka for that relevant year not formed part of his profits and income for that; year; and
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(v) in relation to any other person, means the income tax payable, under the Inland Revenue Act, by that person for that relevant year ;
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“Inland Revenue Act” means the Inland Revenue Act, No. 28 of 1979 ; and
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“person” includes a company or body of persons or any government, but does not include the Central Bank of Sri Lanka ;
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