Prevention of the Avoidance of Tax act

Arrangement of Sections

1. Short title.

2. Certain sections of the Monetary Law Act not to apply to currency notes of specified denominations.

3. Surrender of old currency notes.

4. Transmission of declaration to the Commissioner of Inland Revenue.

5. Declaration to the Commissioner of Inland Revenue by persons surrendering old currency notes.

6. Action taken by Commissioner of Inland Revenue on declarations made to him.

7. Restrictive period for the withdrawal of deposits.

8. Relief available to persons who have been refused the payment of any money held in deposit in any scheduled Bank to the credit of such person.

9. Special provisions relating to the onus of proof in any action or proceedings in any court.

10. Exemptions by the Central Bank.

11. Offences.

12. Power of Central Bank to call for information.

13. Special provision relating to the Central Bank in its capacity as a scheduled bank.

14. This Act to have retrospective effect.

15. Interpretation.

26 of 1970.

AN ACT to enable special measures to be taken for the collection of Income Tax, to prevent the loss to revenue through the evasion of such tax, and to make modifications to the Monetary Law Act connected with or incidental to such special measures.

[Date of Commencement: 20th August, 1970]

1. Short title.

This Act may be cited as the Prevention of the Avoidance of Tax Act.

2. Certain sections of the Monetary Law Act not to apply to currency notes of specified denominations.

As from October 26, 1970, the provisions of sections 55, 56 and 57 of the Monetary Law Act shall cease to apply to all currency notes of the denominations of hundred rupees and fifty rupees, bearing a date earlier than October 26, 1970, hereafter in this Act referred to as "old currency notes”.

3. Surrender of old currency notes.

(1) On November 3, 1970, all old currency notes shall cease to be legal tender and shall, except as otherwise expressly provided by this Act, cease to be the liability of the Central Bank and accordingly the bearer of any such note shall not be entitled to any compensation.

(2) Subject to the provisions of sub-section (4), until and including November 25, 1970, a person in possession of any old currency notes belonging to him may surrender or cause to be surrendered such notes to any scheduled bank, if but only if a written declaration, in such form as may be provided by the Central Bank made and signed by him in duplicate is presented at the time of such surrender and such bank is hereby authorised and required to accept, as agent of the Central Bank, the notes so surrendered.

(3) Where any person has surrendered old currency notes under sub-section (2) to any scheduled bank on or before November 2, 1970, such bank shall,

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