Net closing in on tax evaders as IRD, Excise join forces

Thursday, 22 October 2026 00:24 - - {{hitsCtrl.values.hits}}

MoU sets up joint mechanism for intelligence sharing, parallel investigations
Follows new law classifying tax evasion, excise offences as unlawful activities for money laundering

The net is tightening on tax evaders, with the Inland Revenue Department (IRD) and the Excise Department yesterday signing a Memorandum of Understanding (MoU) to strengthen cooperation in combating tax evasion, money laundering and related financial crimes.

The agreement establishes a joint mechanism for the two departments to share intelligence and conduct parallel investigations based on the information exchanged.

The move follows the Prevention of Money Laundering (Amendment) Act No. 16 of 2026. With effect from 4 August, 2026, the Act classifies offences relating to tax evasion under Section 189 of the Inland Revenue Act, and offences under the Excise Ordinance, as unlawful activities in the context of money laundering. This means the proceeds of such offences can be pursued under anti-money laundering law.

The MoU aims to expand audit operations targeting tax evasion, minimise illicit financial flows and streamline revenue collection procedures. It also seeks to make more effective use of State resources in meeting Government revenue targets.

Commissioner General of Inland Revenue Rukdevi Fernando and Commissioner General of Excise M.B.N.A. Pemaratne signed the agreement on behalf of their respective departments at the Ministry of Finance, under the patronage of Deputy Secretary to the Treasury A.N. Hapugala.