Inland Revenue to keep watch on business transactions

Key government institutions are required to provide either real-time or monthly information through an electronic platform to the Commissioner General of Inland Revenue (CGIR) on all business transactions and property transfers from tomorrow, according to a new gazette notification.

Accordingly, the Registrar General’s Department is required to provide information  monthly about ownership of properties, lease agreements, and transfers, along with personal details of the buyer, seller, property location, value, name of the notary, and other details.

The gazette notice was issued by President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation, and National Policies as per the Inland Revenue Act No. 24 of 2017.

The Department of the Registrar of Companies is to provide, on a real-time basis, data on the registration of new companies and shareholders, information on changes in shares, and companies that were struck off.

The Motor Traffic Department is also legally bound to provide real-time data on registered vehicles and vehicle transfers.

The data received by the CGIR will be incorporated into the risk module of the dedicated Revenue Administration Management Information System (RAMIS) run by the department.

In addition, financial institutions, including banks and non-banking institutions regulated by the Central Bank, are required to provide information on current account holders, loans, and advances every quarter.

State employees who are in charge of granting contracts for the supply of goods or consulting or non-consulting services are also bound to provide to the IRD monthly reports on contracts and services they were involved in.

The Colombo Stock Exchange is also required to provide quarterly updates to the IRD on investment portfolios and transactions of stocks and other negotiable instruments.

“If any information is not maintained by any person or government institution prior to the date of this notification, such person or institution shall commence to maintain such information on or after July 1 and compile it for this notice in respect of such information, effective from such date,” the notice said.

By S. Rubatheesan