Sri Lanka, March 3 -- The proposed amendments to Sri Lanka's Inland Revenue Act aim to improve tax transparency for the unit trust investors and strengthen governance within the sector, the Unit Trust Association of Sri Lanka (UTASL) said.
Under the draft legislation, the unit trusts would be required to issue detailed income certificates to the investors, outlining the earnings, exemptions, withholding taxes and any other information specified by the Commissioner General of Inland Revenue. Certificates must be provided within five months of the end of the relevant assessment year.
The unit trusts that fail to issue the certificates could be taxed as companies, according to EY Sri Lanka Partner Tax Shehani Paranavitane. The measure is ex...