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Shahrukh Khan show
Taxman comes after calamity
The star-studded Shahrukh Khan show which ended in an explosive tragedy has run into further trouble over tax payments. The Department of Inland Revenue has directed commercial banks not to remit any proceeds of the multi-million rupee musical show to any party abroad.

The Sunday Times learns that the directive came after the department moved in to investigate whether the beneficiaries from the show adhered to tax formalities. This is because proceeds from the show, either in part or full, did not go to any charity but to private parties or companies.

Official sources said yesterday that permission to remit any proceeds abroad would be granted only after beneficiaries obtained a Tax Clearance Certificate. Inland Revenue Commissioner General K. Suseelar when contacted by The Sunday Times did not confirm or deny the directive but said he was not in a position to comment on an individual case due to secrecy clauses. He explained that according to the procedure, a foreign artiste performing in Sri Lanka was liable to tax depending on the income gained.

He said that particularly in the event when there was no local organiser liable to pay tax, the department was empowered to issue a ruling that the funds could not be remitted without the payment of the tax. He said that the tax could vary going up to about 30 per cent of the income.

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