106.
| (1) Subject to the provisions of section 107, the income tax, wealth tax or gifts tax charged by any assessment shall be paid by the person liable to pay the tax in a lump sum on or before such date as may be specified in the notice of assessment or in any other notice given to that person, or in such number of instalments, not exceeding four, as may be specified in such notice. Save as otherwise provided hereafter in this section, any tax or any instalment of such tax not so paid shall be deemed to be in default and the person by whom the tax or instalment thereof, as the case may be, is payable or, where such tax or instalment thereof is payable by more than one person or by a partnership, then each of such persons or each partner in the partnership, shall be deemed to be a defaulter for the purposes of this Act. |
|
| (1A) Where any person liable to pay income tax, wealth tax or gifts tax satisfies the Commissioner, on or before the date specified in the notice given to such person under subsection (1) for the payment of such tax or any instalment thereof, that he has made arrangements for the payment of such tax or instalment from any ascertained sum to be paid to him by the Government of Ceylon or from moneys lying to his credit in the Ceylon Savings Bank or the Ceylon Post Office Savings Bank or from moneys to be paid to him from any pension or provident fund approved by the Commissioner and the Commissioner grants such person an extension of time for the payment of such tax or instalment, then such tax or instalment thereof shall not be deemed to be in default until the expiration of such extended time. |
|
| (1B) Where, in respect of any income tax, wealth tax or gifts tax which is due from the estate of a deceased person, an executor of such deceased person, on or before the date specified in the notice given to him under subsection (1) for the payment of tax or any instalment thereof, satisfies the Commissioner that such tax or instalment cannot be paid on or before such date owing to probate or letters of administration not being 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. |
|
| (2) Tax shall be paid notwithstanding any appeal against the assessment, unless the Commissioner orders that payment of the tax or any part thereof be held over pending the result of such appeal, and the amount of the tax or part thereof so held over shall be deemed not to be in default. |
|
| (3) Where the Commissioner is of opinion either that the tax or any part thereof held over under sub- section (2) 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. |
|
| (4) Where, upon the final determination of an appeal under Chapter XII, or upon any order made by the Commissioner, any tax which has been held over under subsection (2) becomes payable or the tax charged by the original assessment is increased, the Commissioner shall give to the appellant a notice in writing fixing a date on or before which any tax or balance of tax shall be paid. Any tax not so paid shall be deemed to be in default. |
|
| (4A) Notwithstanding anything in this section where there is an appeal against an assessment and where the payment of the tax is held over on the order of the Commissioner, the Commissioner, if the appellant agrees during the course of that appeal that a certain sum is due or is likely to be due as tax in respect of that assessment, may 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. |
|
| (5) Where any tax or instalment thereof is in default, a sum equivalent to five per centum of the amount in default shall be added to the tax or instalment thereof and the Commissioner shall give notice in writing to the person by whom the tax or instalment thereof is payable requiring him to pay the tax or instalment thereof together with the sum so added on or before a date specified in the notice, and if payment is not so made, the Commissioner may add a further sum or further sums not exceeding fifteen per centum of the tax or instalment thereof in default until the tax or instalment thereof is recovered. |
|
| (6) Where, upon the final determination of an appeal under Chapter XII, any tax in default to which any sum or sums under subsection (5) has or have been added is reduced, then such sum or sums shall be calculated on the tax as so reduced. |
|
|
Sri Lanka Consolidated Acts