Turnover Tax (Amendment)

(4) In ascertaining the turnover of a business for a quarter, there shall be deducted an amount equal to any bad debt incurred by that business which has become a bad debt during that quarter, being an amount which has been included in the turnover of that business for a previous quarter and in respect of which turnover tax has been paid:

Provided that any sum received in any quarter by that business on account of an amount ;previously deducted under this subsection in respect of a bad debt shall be included in the turnover of that business for the quarter in which that sum is received.

6. In determining the turnover of a business for the purposes of section 3 or section 10-

” (9) Where any person fails to comply with the requirements of a notice given to him by an Assessor under subsection (2), the Commissioner-General may by a notice in writing

(10) The Commissioner-General may reduce or waive any penalty imposed on any person under this section if such person proves to the satisfaction of the Commissioner-General that his failure to furnish a return was due to circumstances beyond his control and that he has, after the imposition of the penalty, furnished such return.

(11) Where a penalty is imposed on a person under subsection (9) he shall not be liable to a prosecution for an offence under section 53 relating to that notice. “.

” (1) Notwithstanding anything in this Act, there shall be charged from every person who imports any article manufactured outside Sri Lanka (not being an excepted article within the meaning of section 8), turn. over tax in respect of his turnover, whether his turnover for any quarter is less than the amount specified in section 3 or not, at the rates specified’ by the Minister under section 7 and shall be collected by the Principal Collector of Customs. The tax imposed under this section shall be in addition to any other tax, duty or levy imposed under the Customs Ordinance. “.

(1) in subsection (1) of that section by the substitution, for the words” penalty imposed on him by this Act: “, of the following:

“penalty imposed on him by this Act, unless the Commissioner-General orders that the payment of the turnover tax or any part thereof be held over pending the determination of such appeal. Upon the making of such order, the amount of turnover tax or part thereof held over, shall not be deemed to be in default: “; and

(2) by the addition at the end of that section, of the following subsections:

” (12) Where, upon the final determination of an appeal or upon an order made by the Commissioner-General, any turnover tax which has been held over under subsection (1) becomes payable or the turnover tax charged by the original assessment is increased, the Commissioner-General shall give to the appellant a notice in writing fixing a date on or before which any such turnover tax or balance of turnover tax shall be paid. Any turnover tax not so paid shall be deemed to be in default.

(13) Where there is an appeal against an assessment and where the payment of any turnover tax specified in the notice of assessment is held over under subsection (1), the Commissioner-General may, if the appellant agrees during the course of inquiry into. or hearing of that appeal, that a certain sum is due or is likely to be due as turnover tax in respect of that assessment, by notice in writing given to the appellant, direct him to pay such sum on or before the date specified in the notice. Any sum not so paid shall be deemed to be in default. “.

29A. Where the Assessor is of the opinion that any transaction or disposition which reduces, or would have the effect of reducing, disregarded. the amount of turnover tax payable by any person is artificial or fictitious or that any transaction or disposition is not in fact given effect to, he may disregard any such transaction or disposition and assess the parties to such transaction or disposition accordingly.

In this section, “disposition” includes any trust, grant, covenant, agreement, or arrangement. .

(1) by the repeal of subsection (2) of that section, and the substitution of the following subsection therefor:

” (2) If the turnover tax in default is in respect of an assessment made on the defaulter against which the defaulter has not lodged a valid appeal or is in respect of any sum payable according to a return furnished by the defaulter, the defaulter may, within thirty days of such notice, make objection to the tax charged, to the Commissioner General and the Commissioner-General shall, notwithstanding the provisions-of section 20, consider such objections and give his decision thereon, which shall be final”; and

(2) by the repeal of subsection (3) of that section.

” (iv) any contract for the provision of services including a contract for the provision of services as an entertainer or artiste but not including a contract of employment.”.

(1) by the repeal of the definition of” Assessor” and the substitution of the following definition therefor:

” Assessor” means an Assessor of Inland Revenue appointed for the purposes of the Inland Revenue Act, No. 28 of 1979 and includes a Senior Assessor of Inland Revenue appointed for the purposes of that Act;” ;

(2) by the repeal of paragraph (2) of the definition of “authorized representative “, and the substitution of the following paragraph therefor: –

” (2) who is authorized in writing from time to time by a person to act on his behalf for the purposes of this Act in respect of such matters relating to the authorization and who is an individual approved by the Commissioner-General for the purposes of the Inland Revenue Act, No. 28 of 1979;

(3) in the definition of “company”, by the substitution, for the words” or elsewhere; “, of the words” or elsewhere and includes a public corporation ;”; and

(4) in the definition of “person” by the substitution, for the words” body of persons “, of the words” body of persons or any Government department; “,