Tax principal at KPMG, Suresh R.I. Perera, has expressed hope that the Sri Lankan government will amend key provisions of the proposed Inland Revenue (Amendment) Bill following the Supreme Court’s determination on taxpayer liability and enforcement measures.

Perera noted that the Supreme Court has ruled that Section 185A, which criminalises administrative failures, is constitutional, but said there is still scope for changes during the committee stage to make the law more taxpayer-friendly.

He also raised concerns about proposed Section 163(4A–4H), which introduces a “certificate procedure” allowing action through the Magistrate’s Court without the court questioning the accuracy of certificates issued by the Commissioner General of Inland Revenue (CGIR).

According to Perera, the Supreme Court has indicated that the provision could be passed either with a two-thirds parliamentary majority or be amended to proceed under a simple majority, depending on revisions made by lawmakers.

He explained that under the proposed system, the CGIR could issue certificates against tax defaulters, enabling unpaid taxes to be treated as fines and potentially leading to imprisonment.

Perera said that despite the government’s strong parliamentary majority, he expects it to consider the Supreme Court’s observations and introduce amendments to avoid legal and procedural concerns, especially where appeals are pending.

The Inland Revenue (Amendment) Bill is scheduled for its second reading in Parliament on Wednesday.