Sri Lanka, July 20 -- The Inland Revenue Department (IRD) said it will initiate legal proceedings against individuals and businesses that intentionally fail to register, fail to submit tax returns or conceal income despite being liable for significant taxes.

Under new amendments to the law, the Inland Revenue (Amendment) Act, No. 11 of 2026 introduces strict penal provisions for specified compliance failures. Accordingly, it empowers the Commissioner General of Inland Revenue to initiate criminal prosecution against individuals and entities who deliberately fail to meet their specified income tax obligations, the IRD explained.

A taxpayer who fails to comply with statutory requirements may be subject to prosecution proceedings, in the f...