107.
| (1) Where the remuneration of any employee who is liable to tax under the provisions of this Act is paid monthly, the Commissioner may, by notice in writing given to the employer of such employee or the person responsible for the payment of the remuneration of such employee, direct such employer or such person to deduct during the period commencing on the first day of September in a year of assessment and ending on the thirty-first day of August in the succeeding year of. assessment the amount of income tax or wealth tax or income tax and wealth tax payable in respect of the first-mentioned year of assessment by such employee in such number of monthly instalments as may be specified in such notice; and thereafter until such employer or such person receives a fresh direction from the Commissioner, he shall, whether such employee has been assessed or not for the succeeding year of assessment, continue to deduct each month, commencing from September in such succeeding year from the remuneration payable to such employee an amount equivalent to the amount so deducted in the last month of the aforesaid period and the amount so deducted from September in such succeeding year of assessment shall be set off against the income tax or wealth tax or income tax and wealth tax payable by such employee for the succeeding year of assessment. The amount so deducted each month from the remuneration of an employee shall be paid to the Commissioner by the employer or the person responsible for the payment of such remuneration. |
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| (1A) Where under subsection (1) any tax is deducted from the remuneration of an employee by his employer or by the person responsible for the payment of such remuneration, such employee shall, for the purposes of this Act, be deemed to have paid such tax on the date on which the deduction is made. |
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| (2) The Commissioner may at any time after he has given a direction under subsection (1) withdraw such direction wholly or partly by notice given in writing to the employer or the person responsible for the payment of the remuneration of the employee if the employee has made arrangements to the satisfaction of the Commissioner for the payment of his income tax or wealth tax or income tax and wealth tax. |
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| (3) Where any employee from whose remuneration any tax is to be deducted under the preceding provisions of this section by his employer or the person responsible for the payment of such remuneration is about to leave or leaves his employment, the employer or such person shall deduct the whole amount of such tax or any balance thereof which he has been directed to deduct by the notice given to him by the Commissioner from all or any payments made by him to such employee after he becomes aware that such employee is leaving his employment. |
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| (4) Where a direction for the deduction of any tax from the remuneration of an employee is given under subsection (1) to his employer or to the person responsible for the payment of such remuneration and such employer or person is unable to deduct the whole or any part of such tax for the reason that such employee has left his employment or for any other reason, such employer or person shall forthwith give notice in writing to the Commissioner acquainting him with the facts of the matter, and any tax which such employer or person has not deducted or cannot deduct shall immediately become payable by the employee and shall be deemed to be in default fourteen days after the data of a notice thereof given to him. |
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| (5) Where, from the remuneration of an employee, the employer or the person responsible for the payment of such remuneration has failed to deduct anytax which he has been directed to deduct under sub-section (1) and such employer or person has failed to give notice to the Commissioner as provided in subsection (4) within fourteen days of the date on which such deduction should have been made, or where such employer or person has deducted or could have deducted tax in any month from any remuneration in accordance with a direction under subsection (1) and has not paid as directed by the Commissioner the amount of such tax to the Commissioner by the fifteenth day of the following month, such employer or person, if he is an individual, shall be liable, or where such employer or person is a company or a body of persons, whether corporate or unincorporate, the secretary, manager or other principal officer of such company or body shall be personally liable, for the whole of the tax which such employer or such person has been directed to deduct under this section and such tax may be recovered from such individual, secretary, manager or other principal officer by all means provided in this Act, and such tax shall be deemed to be in default for the purposes of subsection (5) of section 106. |
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| (6) Every employer or other person who deducts tax from the remuneration of any employee in accordance with a direction under subsection (1) shall on request made by such employee issue to him a certificate of the amount of tax deducted in the prescribed form. |
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| (7) For the purposes of this section-" employee "-
| | (a) includes every person who holds a paid office as a servant of the Crown; and | | |
| | (b) shall be deemed to include the following: -
| | | (i) the President and Deputy President of the Senate, |
| (ii) the Speaker, the Deputy Speaker, the Deputy Chairman of Committees and the Leader of the Opposition, of the House of Representatives, |
| (iii) the Clerk to the Senate, the Clerk to the House of Representatives, or a member of the staff of the Clerk to the Senate or the Clerk to the House of Representatives, |
| (iv) a Minister or a Parliamentary Secretary or the Chief Government Whip, |
| (v) a Senator or a Member of Parliament by reason only of the fact that he receives any remuneration as a Senator or such Member, |
| (vi) a member of the Public Service Commission, |
| (vii) a member of the Judicial Service Commission, |
| (viii) a director of a company or corporation. |
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Sri Lanka Consolidated Acts