Constitutionality of tax amnesty challenged in SC SJB, JVP among petitioners

By Chitra Weerarathne 

The constitutionality of the controversial Finance Bill seeking to give amnesty to tax defaulters has been challenged in the Supreme Court by several petitioners. 

The petitioners have alleged that the proposed tax amnesty to be given to those who had not paid taxes or disclosed income was arbitrary, irrational, grossly unreasonable, contrary to the rule of law, Public Trust Doctrine and sovereignty of the people  

The Finance Bill was presented to the House on July 20 by Leader of the House Dinesh Gunawardena.  

The petitioners stated that the sum to be collected as a ‘Tax on Voluntary Disclosure’ of 1% of the sum disclosed is far lower than the tax liability of the persons who have already paid tax in terms of applicable existing law.  

The Bill violated Article 12(1) of the Constitution of Sri Lanka which ensured equality to everyone, they stated. 

Among the petitioners are General Secretary of the Samagi Jana Balavegaya Ranjith Madduma Bandara, former State Minister for Finance and current SJB member Iran Wickramaratne, former JVP MP Sunil Handunnetti

Farman Cassim, President’s Counsel will appear with Mithun Imbulana instructed by Mallawarachchi Associates for SJB General Secretary.

The Supreme Court will commence hearing these petitions today (28).