By The Pulseline News Desk
The Right to Information Commission (RTIC) has directed the Inland Revenue Department (IRD) to disclose the names of taxpayers and institutions linked to tax liabilities totalling Rs. 84 billion, in a landmark ruling on public access to information relating to tax defaults.
The order, delivered on June 30, 2026, also requires the IRD to release details of taxpayers in respect of whom recovery of liabilities had been suspended, as referred to in a 2024 media release issued by the department.
The Commission has further ordered the disclosure of a breakdown of the Rs. 84 billion liability attributed to individual taxpayers as at December 31, 2023.
In addition, the RTIC has directed the IRD to release information concerning individuals who received tax relief amounting to Rs. 57 billion under the arrangements referred to in the 2024 media release.
The Commission has noted that the Rs. 57 billion in tax relief was an amount that was no longer considered due to the Government and therefore has held that the public had a legitimate right to know who had benefited from the relief.
The ruling was issued in response to an appeal by citizen R.B.J. Suranga after the IRD had refused his request for information under the Right to Information Act.
The IRD had rejected the request on the grounds that the information constituted personal information and that there was no sufficient public interest to justify its disclosure.
It had also cited Sections 100 and 191 of the Inland Revenue Act No. 24 of 2017, as amended, which provide for confidentiality in relation to taxpayer information.
However, the RTIC has rejected the argument that tax confidentiality created an absolute barrier to disclosure under Sri Lanka’s Right to Information framework.
In its ruling, the Commission has examined comparable provisions in United Kingdom (UK) tax and freedom of information law and noted that confidentiality, while being the starting point of tax administration, did not amount to a blanket prohibition on disclosure.
The Commission has pointed to the approach taken by the UK’s His Majesty’s Revenue and Customs (HMRC), noting that the identification of deliberate tax defaulters has been recognised as necessary in certain circumstances to strengthen economic well-being.
The RTIC has acknowledged that secrecy is a fundamental principle in both Sri Lankan and UK tax administration systems. However, it has held that confidentiality must be considered alongside the broader public interest provisions of Sri Lanka’s RTI Act.
In particular, the Commission has found that Section 5(4) of the RTI Act allows the public interest in accessing information concerning tax defaulters and the protection of public funds to be taken into account.
The Commission has said a proportionality test must therefore be applied when information is withheld.
It has held that the IRD must demonstrate specific harm that would result from disclosure, rather than relying solely on general claims of taxpayer secrecy.
The ruling has also referred to the HMRC’s approach of publishing details of businesses and individuals found to have deliberately underpaid tax under its “name and shame” disclosure regime.
The decision could have wider implications for transparency in Sri Lanka’s tax administration, particularly as the Government seeks to strengthen revenue collection and address long-standing concerns over tax compliance and preferential treatment.
By ordering the disclosure of the identities behind billions of rupees in tax liabilities and relief, the RTIC has effectively placed public accountability alongside taxpayer confidentiality in determining what information should remain secret.
The key question now is whether the IRD will comply with the Commission’s order and disclose the information, potentially bringing greater public scrutiny to how major tax liabilities were handled and who benefited from tax relief.
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