BETTING AND GAMING LEVY ACT

Arrangement of Sections

1. Short title.

2. Imposition of the levy.

2A. Registration of betting or gaming business.

3. Business in each place a separate business.

4. Payment of the levy.

5. Offences.

6. Administration.

6A. Regulations.

7. Interpretation.

SCHEDULE

40 of 1988,

7 of 2001,

11 of 2002,

23 of 2003,

9 of 2005,

12 of 2005,

14 of 2006,

19 of 2013,

14 of 2015.

AN ACT to provide for the imposition of an annual levy on persons carrying of the business of bookmaker or gaming and for matters connected therewith or incidental thereto.

[Date of Commencement: 24th November, 1988]

1. Short title.

This Act may be cited as the Betting and Gaming Levy Act.

2. Imposition of the levy.

(1) Subject to the other provisions of this Act, and notwithstanding any other law, there shall be charged and levied for the year commencing on April 1, 1988, and in respect of every year thereafter, on every person who carries on in Sri Lanka, whether lawfully or unlawfully, during that year (for whatever period)—

(a) the business of a bookmaker; or

(b) the business of gaming,

a levy (hereinafter referred to as the “levy”) equivalent to the respective amounts set out in the Schedule to this Act:

Provided however, that where any person commences to carry on any such business as is referred to in paragraph (a) or (b) on or after October 1 of any year, he shall be liable to pay half the levy payable by him under this Act, for that year.

[S 2(1) am by s 2 of Act 9 of 2005.]

(1A) Every person who is liable to pay the levy under subsection (1) shall, in addition to the payment of such levy, be charged a levy—

(a) for any year commencing on or after January 1, 2013 but prior to January 1, 2015, at the rate of five per centum; or

(b) for any year commencing on or after January 1, 2015, at the rate of ten per centum,

on the gross collection of the businesses referred to in paragraphs (a) or (b) of subsection (1) carried on by him in respect of each month:

[S 2(1A) am by s 2(1) of Act 14 of 2015.]

Provided however, the person who is liable to pay the levy under this subsection, shall not be liable to pay the Value Added Tax under the Value Added Tax Act, No.14 of 2002 or the Nation Building Tax under the Nation Building Tax Act, No.9 of 2009, on such collection:

Provided further, that any person whose gross collection in respect of the businesses referred to in paragraphs (a) or (b) of subsection (1) does not exceed one million rupees per month, such person shall not be liable to pay the levy required to be paid under this subsection.

[S 2(1A) ins by s 2 of Act 19 of 2013.]

(1AA) Every person who carries on the business of gaming in Sri Lanka for any year commencing on or after January 1, 2015, shall collect a Levy (hereinafter referred to as the “casino entrance levy”) of United States Dollars one hundred or its equivalent in any other convertible foreign currency or in Sri Lanka currency from any person who enters such place of business of gaming:

Provided however, the provisions of subsection (1AA), shall not apply to—

(a) the managing director or any member of the Board of Management or any employee of such place of business of gaming;

(b) any officer authorised in that behalf to enter such place of business in the exercise, performance and discharge of his duties under any written law; or

(c) any person prescribed under this Act.

[S 2(1AA) ins by s 2(2) of Act 14 of 2015.]

(1B) Every person who is liable to pay the levy under subsection (1A) and subsection (1AA), shall—

[S 2(1B) am by s 2(3)(a) of Act 14 of 2015.]

(a) on or before the twentieth day of the month following the end of the relevant quarter, furnish to the Commissioner-General either in writing or by electronic means a return in such form and containing such particulars as may be specified by the Commissioner-General, of the gross collection of such person; and

(b) remit the levies charged and collected under subsection (1A) and subsection (1AA) of section 2, in respect of each month on or before the end of the first week of the month immediately succeeding that month.

[S 2(1B) ins by s 2 of Act 19 of 2013; s 2(1B)(b)
subs by s 2(3)(
b) of Act 14 of 2015.]

(1C) Where any person who is liable to pay the levy under subsection (1A) and subsection (1AA), fails to pay the levy thereof, the provisions of subsections (2), (3), (4), (5) and (6) of section 4 of this Act shall, mutatis mutandis apply in respect of such failure to pay the levy payable under subsection (1A) and subsection (1AA).

[S 2(1C) ins by s 2 of Act 19 of 2013; am by s 2(4) of Act 14 of 2015.]

(1D) For the purposes of this section—

(a) “gross collection” means the total amount recovered from the business of bookmaker or business of gaming in respect of that month;

(b) “relevant quarter” means the period of three months commencing on the first day of January, first day of April, first day of July or first day of October of any year.

[S 2(1D) ins by s 2 of Act 19 of 2013.]

(2) Nothing in the preceding provisions of this section shall be construed as conferring legality on any business referred to in this section if such business is prohibited by law.

2A. Registration of betting or gaming business.

(1) Every person, who, on or after January 1, 2013, but prior to May 31, 2013, carries on the business of a bookmaker or gaming referred to in subsection (1) of section 2, shall register with the Department of Inland Revenue.

[S 2A(1) subs by s 3 of Act 14 of 2015.]

(2) The Commissioner General shall issue a certificate of registration containing the name, address, registration number and any other particulars as may be determined by him to every person registered under subsection(1).

(3) Every person who acts in contravention of the provisions of subsection (1), shall commit an offence and shall, on conviction after summary trial by a Magistrate, be liable to a fine not exceeding ten million rupees or to imprisonment of either description for a term not exceeding six months or to both such fine and imprisonment.

[S 2A ins by s 3 of Act 19 of 2013.]

3. Business in each place a separate business.

Where any business, as is referred to in subsection (1) of section 2, is carried on in different places by the same person he shall be deemed to carry on a separate business in each such place and shall be liable to pay the levy in respect of each such business.

[S 3 am by s 11 of Act 11 of 2002.]

4. Payment of the levy.

(1) A person liable to pay the levy under this Act for any year commencing prior to April 1, 2002 shall pay such levy, to the Commissioner-General in four equal installments, on or before the fifteenth day respectively of July, October and January in that year and the fifteenth day of April of the succeeding year:

Provided however, that a person who commences to carry on any such business as is referred to in section 2, after the first day of April in any year, shall pay the levy is liable to pay under this Act for that year in such number of installments, and on such dates, as the Commissioner-General may consider reasonable having regard to all the circumstances of the case:

Provided further that a person who is liable to pay an installment of the levy on or before the fifteenth day of July, 1988, or on or before the fifteenth day of October, 1988, shall be deemed not to be in default in the payment of such installment, if he pays such installment within sixty days of the date of commencement of this Act, and where he fails to pay such installment within the aforesaid sixty days, such installment shall be deemed to be in default and the provisions of this Act relating to the recovery of an installment of the levy shall apply to the recovery of such installment.

[S 4(1) am by s 12(1) of Act 11 of 2002.]

(1A) A person liable to pay the levy under this Act for any year commencing on or after April 1,2002 shall pay the levy to the Commissioner-General in four equal installments on or before the first day respectively, of April, July, October and January of that year. For the purposes of payment of the levy the Commissioner-General may issue an identification number to the person liable to pay the levy:

Provided however, that the levy payable by any person for the year of assessment commencing on April 1, 2002, shall be paid by him in three equal installments on or before the first day respectively, of July, October and January of the year:

Provided further that, a person who commences to carry on any such business as is referred to in section 2 after the first day of April of any such year shall pay the levy he is liable to pay under this Act for that year in such number of installments not exceeding four, and on such dates as the Commissioner-General may consider reasonable, having regard to all the circumstances of the case.

[S 4(1) ins by s 12(2) of Act 11 of 2002.]

(2) Where any person liable to pay the levy under this Act fails to pay any installment thereof on or before the date specified or determined, under subsection (1) or (1A), for the payment thereof, the installment shall be deemed to be in default and such person shall be deemed to be a defaulter, for the purposes of this Act.

[S 4(2) am by s 12(3) of Act 11 of 2002.]

(3) Where any installment of the levy is in default and

(a) the default is in respect of an installment payable in any year commencing on or after April 1, 1988 but prior to April 1, 2001, the defaulter shall, in addition to the installment in default, pay as penalty—

(i) a sum equivalent to ten per centum of the installment in default; and

(ii) where the installment in default is not paid before the fifteenth day of the month succeeding the month in which such installment had begun to be in default, a further sum equivalent to two per centum of the installment in default in respect of each period ending on the fifteenth day of each succeeding month or part of such period, during which it is in default:

provided however, that the total amount payable as penalty under this paragraph shall, in no case exceed fifty per centum of the installment in default; and

(b) the default is in respect of an installment payable in any year commencing on or after April 1, 2001, the defaulter shall in addition to the installment in default, pay as penalty, a further sum equivalent to thirty three and one third per centum of the installment in default, in respect of each period ending on the fifteenth day of each month, succeeding the month in which the installment had begun to be in default or part of such period during which the installment is in default:

Provided however, that the total amount payable as penalty under this paragraph, shall in no case exceed one hundred per centum of the installment in default.

[S 4(3) subs by s 3 of Act 7 of 2001.]

(3A) The Commissioner-General may reduce or waive any penalty payable under subsection (3), if the
Commissioner-General is satisfied that by reason of any special circumstances in which the default occurred, a reduction or waiver of such penalty would be just and equitable.

[S 4(3A) ins by s 3 of Act 7 of 2001.]

(4) Any installment in default together with such penalty as is referred to in subsection (3) of this section may be recovered from the person who is the defaulter.

(5) The provisions of Chapters XI and XII and
sections 40, 41, 42, 43 and 57 of the Turnover Tax Act, shall, mutatis mutandis, apply to the payment and recovery of any installment of the levy payable under subsection (1) of section 2 of this Act.

[S 4(5) am by s 4(1) of Act 14 of 2015.]

(6) Where any installment of the levy is in default, the Commissioner-General may issue a certificate containing particulars of the installment in default and the name of the defaulter to the Inspector-General of Police and the Inspector-General of Police shall on receipt thereof, take such measures as may be necessary to stop the defaulter from carrying on the business of bookmaker or gaming, as the case may be, at the place as shall be specified in such certificate.

[S 4(6) ins by s 12(4) of Act 11 of 2002.]

(6) In addition to the provisions of subsection (5) of this section, the provisions of sections 106, 107, 108 and 112 of Chapter XII relating to Returns etc., Chapter XXII relating to Assessments, Chapter XXIII relating to Appeals, Chapter XXIV relating to Finality of Assessments and Penalty for incorrect Returns, Chapter XXVI relating to Recovery of Tax, and Chapter XXXI relating to General matters, of the Inland Revenue Act, No. 10 of 2006, shall mutatis mutandis apply to the furnishing of returns, assessments, appeals against assessments, finality of assessments and penalty for incorrect returns, recovery of tax, and the payment of the levy referred to in subsection (1A) of section 2 of this Act.

[S 4(6) ins by s 4(2) of Act 14 of 2015.]

[Note: Act 14 of 2015 inserted s 4(6) irrespective of the presence of s 4(6) as inserted by Act 11 of 2002.]

5. Offences.

(1) Every person who—

(a) fails to comply with any requirement imposed on him under section 190 of the Inland Revenue Act read with section 4(5) of this Act;

[S 5(1)(a) am by s 5(1) of Act 14 of 2015.]

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