Inland Revenue says 468 companies comply with Super Gain Tax

By Charumini de Silva

The Inland Revenue Department (IRD) yesterday said that 468 companies have complied with the Super Gain Tax (SGT) imposition and Rs. 18 billion paid via the first instalment by end October. 

The IRD disclosure of the actual figures upon Daily FT inquiry comes after Finance Minister Ravi Karunanayake on Wednesday said only 22 companies were paying the controversial and widely-criticised retrospective SGT.

The large number is inclusive of subsidiary companies and banks.

SGT rate is 25% on the taxable income for 2013/14 for any individual or each company including subsidiaries and holding company, including subsidiaries and holding company in a group of companies, notwithstanding that the profit before income tax of any such company in the group does not exceed Rs. 2 billion. 

The second instalment is due on 30 November and the final portion is on or before 31 December.

Karunanayake on Wednesday said SGT was estimated to rake in Rs. 65 billion for State coffers as opposed to the original target of Rs. 50 billion.

He justified the SGT on the basis that the new Government had to find extra revenue to finance the relief and stimulus package contained in the 100-day program.