26 October 2017 12:00 am
The new Inland Revenue Act, effective from 1st April 2018, will see an in-depth analysis of the significant changes to it at Ramada Hotel on 1st November 2017, carried out by KPMG Tax Principal Attorney at Law Suresh R.I. Perera.
The session will cover business, investment and employment income.
Referring to the introduction of the much talked about capital gains tax in Sri Lanka, Perera opined: “It is not correct to say that Sri Lanka has introduced a new tax called capital gains tax. Capital gains has not even been included as a source of income, which was the case prior to 2002. The new Act imposes income tax on capital gains, gains on investments and certain capital receipts.”
“The new Act also has provisions pertaining to methods of computation when assets are passed on to a spouse on a divorce or separation, on death and also when assets are being gifted. What is significant is that income tax liability on gains arises not only in relation to assets but the tax could arise in relation to realisation of liability too.”Further, Perera added: “Understanding the concept of “realisation” is vital as it is this incidence that triggers the income tax on gains from capital and investments. It’s not restricted to mere sale or gifting. The word is defined very broadly in the new Act to include many incidences pertaining to assets and liabilities. An understanding of the finer points of this concept would pave the way for efficient tax planning.”
The seminar organised by UTO EduConsult will be held at Hotel Ramada Colombo on 1st November 2017 from 2:00p.m. to 5:00p.m..