19/07/2026
📢 IMPORTANT TAX UPDATE 2026✅
IRD Clarifies New Tax Prosecution Process
The Inland Revenue Department (IRD) has announced how the prosecution provisions under the Inland Revenue (Amendment) Act, No. 11 of 2026 will be implemented.
Legal action is a last resort and targets deliberate tax evaders, while genuine taxpayers will be given an opportunity to rectify non-compliance.
KEY UPDATES
📄 Written Notice First
A formal written notice will be issued before any prosecution.
⏳ 30-Day Grace Period
Taxpayers will receive 30 days to rectify any non-compliance.
⚖️ Failure to Comply
Failure to comply within 30 days may result in prosecution before the Magistrate’s Court.
💰 Maximum Penalties
* Fine up to Rs. 400,000
* Imprisonment up to 6 months
* Or both
📑 Applicable Offences
✔ Failure to register with the IRD
✔ Failure to file Income Tax Returns
✔ Failure to submit WHT & APIT Annual Statements
🎯 Who Is Targeted?
The new provisions apply to intentional tax evaders, not cooperative taxpayers.
🛡️ TIN Holders with No Tax Liability
Individuals who only require a TIN and have no tax liability will not face prosecution. Taxpayers with inactive tax files may apply to close their files through their regional IRD office.
STAY COMPLIANT WITH COMPACT BUSINESS SOLUTIONS
Need assistance with:
* TIN Registration
* Income Tax Returns
* APIT & WHT Returns
* Tax Compliance
* Tax Advisory
📧 [email protected]
📞 +94 76 646 1707
🌐 www.compactbiz.com
