173.
| (1) Where a quarterly instalment of a tax or a part of such instalment for any year of assessment is not paid on or before the date specified in subsection (1) section 113 for the payment of that instalment, such instalment of tax or part thereof, or where any tax or part thereof assessed by an Assessor for any year of assessment and required to be paid on or before the date specified in the notice of assessment (such date, in the case of any tax which is required to be paid under subsection (1) of section 113, being a date earlier than the date before which such tax or part thereof is required to be paid under that section) is not so paid, such tax or part thereof shall be deemed to be in default, and -
| | (a) where such tax is payable by one person, such person; and | | |
| | (b) where such tax is payable by more than one person or by a partnership, each of such persons or each partner in each partnership, | | |
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| (2) Where the entirety of the tax or part of such tax payable by a company on or before the date specified for the payment of that tax in subsection (3) or subsection (4) of section 113, is not so paid, such tax or part thereof shall be deemed to be in default and such company shall be deemed to be a defaulter for the purposes of this Act. |
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| (3)Where any tax payable by any person for any year of assessment is in default, the defaulter shall in addition to the tax in default, pay -
| | (a) a penalty of a sum equivalent to ten per centum of such tax; and | | |
| | (b) where such tax is not paid before the expiry of thirty days after it has begun to be in default, a further penalty of a sum equivalent to two per centum of the tax in default in respect of each further period of thirty days or part thereof, during which it remains in default: | | |
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| (4)Notwithstanding the provisions of section 96B of the Inland Revenue Act, No. 4 of 1963, where any tax payable by any person for any year of assessment preceding the year of assessment commencing on April 1, 1979 is in default on or after April 1, 1981, the defaulter shall, in addition to the tax in default, pay as a penalty any sum payable as penalty in terms of subsection (6) of section 96B of the Inland Revenue Act, No. 4 of 1963 and a further sum equivalent to twenty five per centum of the amount in default on or after April 1, 1981. |
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| (5)Where any assessment has been made on any person for any year of assessment by an Assessor, the amount of the tax as specified in the notice of assessment shall, for the purposes of subsection (3), be deemed to be the tax payable by that person for that year of assessment. |
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| (6)Tax shall be paid notwithstanding any appeal against the assessment, unless the Commissioner-General orders that payment of tax or any part thereof be held over pending the determination of such appeal, and the amount of the tax or part thereof so held over shall not be deemed to be in default. |
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| (7) Where the Commissioner-General is of the opinion either that the tax or any part thereof held over under subsection (6) is likely to become irrecoverable, or that the appellant is unreasonably delaying the prosecution of his appeal, he may revoke any order made under that subsection, and make such fresh order as the case may appear to him to require and the amount of any tax not paid on or before such date as may be specified in the fresh order, shall be deemed to be in default. |
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| (8) Where, upon the final determination of an appeal under Chapter XXIII or upon any order made by the Commissioner-General, any tax which has been held over under subsection (6) becomes payable or 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 tax or balance tax shall be paid. Any tax not so paid shall be deemed to be in default. |
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| (9) Notwithstanding anything in this section, where there is an appeal against an assessment and where the payment of any tax specified in the notice of assessment is held over on the order of the Commissioner-General, the Commissioner-General may, if the appellant agrees during the course of the inquiring into or hearing of that appeal, that a certain sum is due or is likely to be due as tax in respect of that assessment, by notice in writing given to the appellant, direct the appellant to pay such sum on or before such date as is specified in the notice. Any sum not so paid shall be deemed to be in default. |
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| (10) Where upon the final determination of an appeal under Chapter XXIII, any tax in default to which any sum or sums has or have been added under subsection (3) is reduced, then such sum or sums shall be calculated on the tax as so reduced. |
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| (11) Where any person liable to pay any tax satisfies the Commissioner-General on or before the date he is required to pay such tax or any instalment thereof, that he has made arrangements for the payments of such tax or instalments from any sum to be paid to him by the Government or from moneys lying to his credit in the National Savings Bank or from moneys to be paid to him from any person or provident fund approved by the Commissioner-General, the Commissioner-General may grant such person an extension of time for the payment of such tax or instalment, and such tax or instalment thereof shall not be deemed to be in default until the expiration of such extended time. |
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| (12) Where any tax is due from the estate of a deceased person, and the executor of such deceased person satisfies the Commissioner-General on or before the date he is required to pay such tax or any instalment thereof, that such tax or instalment cannot be paid on or before that date owing to probate or letters of administration not having been granted to him, such sum or instalment shall not be deemed to be in default if it is paid within a period of two months after the date of the grant of probate or letters of administration. |
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| (13) Where any tax held over by the Commissioner General becomes payable, either wholly or partly on settlement of the appeal, then any amount payable shall be recovered within one year from the date of settlement of the appeal, unless a case has been stated in relation to such appeal to the Court of Appeal under section 170; |
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| (14) In this section, "tax" means income tax which is payable in respect of the profits and income of any person for any year of assessment, and the advance company tax payable for any year of assessment by a company in relation to any qualifying distribution. |
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Sri Lanka Consolidated Acts