The Inland Revenue Department (IRD) has issued a stern warning to large and medium-scale tax defaulters, cautioning them of potential consequences such as property seizures and bank account freezes if they fail to settle their tax arrears within the specified deadlines.
The IRD has set an October 25 deadline for businesses in the Large Taxpayer Units and Upper Corporate Tax categories with overdue amounts under Rs. 100 billion to clear their dues. Those owing more than this amount have until December 25 to settle their arrears.
According to the Sunday Times, IRD Commissioner General Sepalika Chandrasekera revealed that two-thirds of the defaulters are among the 1,500 tax file holders in the large and upper corporate tax categories. The overdue taxes mainly consist of Value Added Tax (VAT).
Chandrasekera noted that defaulters have been notified through formal notices, with some being summoned for direct communication. She emphasized that no extensions will be granted for the settlement of arrears, warning that non-compliance will result in the seizure of properties and freezing of bank accounts.
