TAX REGISTRATION IS VITAL FOR ENHANCING TAX COMPLIANCE

IN CELEBRATION OF TAX WEEK FROM 2ND TO 8TH JUNE

- By M.A. Priyanka - Senior Commissioner

Taxes are very important in building a robust economy and play a vital role in implementing good fiscal policies.

Government policies on taxation that are governed by any country play a key role in determining a country's vulnerability in providing health, education, etc., for its public. Any government in the world, whether it is developed or not, needs sufficient revenue to overcome financial difficulties. Therefore, they change their tax policies and introduce a new way of tax collection using modern technologies. Narrowing the tax GAP and widening the tax base are the common Goals of the government when formulating tax policies for the public.

When considering the situation in Sri Lanka, two-thirds of revenue still comes from indirect taxes. Over time, the direct tax base has been eroded by high thresholds and multiple exemptions. Therefore, enhancing the Tax compliance strategy aiming at Taxpayer Registration is an essential factor for development.

Legal Provisions in progress

TIN registration Taxpayer Registration and Taxpayer Identification Numbers

Tax registration, filing return, payment on time, declaration of Income, expenditure, assets and liabilities are key components of Tax compliance. The Inland Revenue Act No. 24 of 2017 outlines specific provisions for tax registration. Section 102 of this Act has also been mandated to individuals who are liable to tax must furnish a return of income. They must register with the Commissioner General within thirty days after the end of the basis provided for that year.