126.
| (1) Where any bank or financial institution fails to income tax from the interest paid by it in any year of in a person chargeable with income tax under this Act, in .accordance . with section 125 or where the bank or financial institution fails to remit to the Commissioner -General any amount so deducted such bank or financial institution shall be liable for the. entire amount of the tax it was required to deduct under the provisions of this section but has not deducted or as the case may be for the entire amount or part of the amount of the tax deducted and not remitted to the Commissioner-General and the amount not deducted or deducted and not remitted, as the case muted as the case may be deemed in be in default horn the day following the before which such amount should have been remitted Commissioner -General and such bank or financial institution shall be deemed to be a defaulter, and such amount recovered from such bank or financial l institution in manner provided in this Act. |
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| (2) Notwithstanding the provisions of subset turn (1), the Commissioner-General may recover from the person from whom such deduction should have been made the amount of the income tax or any part thereof which the bank or financial institution has tailed to deduct from the interest paid to such person |
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| (3) Nothing in this section shall be read and construed as preventing the Commissioner General from taking such steps as he thinks fit to recover the amount of income tax referred to in subsection (2) wholly from the bank or financial institution of wholly from the person from whom such deduction should have been made or partly from the bark or financial institution and partly from that person |
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Sri Lanka Consolidated Acts