128. Notwithstanding the provisions of section 127, where any income tax payable by any employer under the provisions of this Chapter is in default in respect of any period, such employer shall pay in addition to such tax a penalty, not exceeding ten per centum of such tax in default calculated as follows: -
| (a) where the tax payable on a return submitted under subsection (1) of section 106 has not been paid fully or partly on or before the due date, at the rate of five per centum for the first month of such default and a further one per centum for each month or part of a month thereafter, on such amount of tax in default; |
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| (b) where an assessment has been issued in the absence of a return due from such person and the relevant tax is in default, at the rate of ten per centum on such amount of tax in default; |
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| (c) where an assessment was under appeal and the tax became payable on the settlement of such appeal, at the rate of ten per centum on such amount of tax that became payable. |
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Sri Lanka Consolidated Acts