News
Pay up VAT arrears or face decisions regarding operations: IRD tells companies
View(s):By Damith Wickremasekara
The Inland Revenue Department (IRD) has given notice to companies that have defaulted Value Added Tax (VAT) to make payments by next week or face conditions regarding their operations.
The deadline to make VAT payments officially ends on Thursday, December 27.
IRD Commissioner General Sepalika Chandrasekara told the Sunday Times that the VAT due was based on their own declarations and companies have been informed that they would face difficulties in continuing with their business activities.
She said they were not in favour of business establishments closing down and employees losing their jobs, however the department would be compelled to make decisions to collect taxes.
The Commissioner General said that they would consider giving them a period to pay the dues, and conditional approval would be granted to operate for a particular time period like a month or two.
A similar system was introduced for liquor manufacturing companies where they were ordered to pay up within two months and the licences were temporarily extended. However, the licences will be suspended if the arrears were not paid.
Ms Chandrasekara said companies have been sent reminders since May this year to pay the arrears.
The move comes as the revenue target of the IRD for next year has been increased to Rs 2,350 billion from this year’s target of Rs 2,225 billion. This year so far the IRD has raised a tax revenue of Rs 1,845 billion.
The Commissioner General said they were confident of passing the Rs 2,000 billion mark with the tax payments received by Friday.
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