DlAS VS. COMMISSIONER GENERAL OF INLAND REVENUE

DlAS VS. COMMISSIONER GENERAL OF INLAND REVENUE

COURT OF APPEAL
ERIC BASNAYAKE, J.
CHITRASIRI, J.
CA 764/2000 (REV)
DC COLOMBO 68552/TAX
JULY 28,2008
JULY 24,2009

Inland Revenue Act 38 of 2000 - Section 146, Section 149 (1), Section 166, Section 166(1) -Income Tax Ordinance - Section 62 - Similarities? Inland Revenue Act 4 of 1963 - Defaulter a Company - Is a Director or Principal officer of a limited liability Company liable to pay taxes due from Company from his personal assets - Jurisdiction? Vicarious liability - Exceptional circumstances - Applicability of the amendment 12 of 2004

The Deputy Commissioner of Inland Revenue filed a certificate of tax in default in the name of the petitioner claiming a certain sum of money. The tax defaulter is the Company and the petitioner was sued on the basis of vicarious liability. The trial Court held that in terms of Section 166 (1) an action could be instituted against the Managing Director to recover tax defaulted by the Company.

It was contended that, the petitioner cannot be a defaulter since he has not been duly assessed. It is the Company that was duly as

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