The Inland Revenue Department has announced that strict legal action will be taken against individuals and businesses that deliberately avoid paying taxes, fail to register, or do not submit required tax returns.

The department stated that under the Inland Revenue Amendment Act, which came into effect on June 3, 2026, it has been granted authority to initiate legal proceedings against those who fail to comply within the required period.

Accordingly, failure to register with the Commissioner General, failure to submit income tax returns, or failure to submit annual reports will be considered offences.

The department said non-compliant taxpayers will first receive an official notice, after which they will be given 30 days to rectify the shortcomings.

If they fail to comply within the given period, legal action may be initiated. Following a summary trial before a Magistrate’s Court, convicted persons may face a fine not exceeding Rs. 400,000, imprisonment for up to six months, or both.

The department emphasized that these laws are aimed at those who evade taxes and will not affect citizens who comply with their tax obligations.