Sri Lanka Insurance Corporation Limited vs. The Commissioner General of Inland Revenue – CA TAX/0029/2019-2022

The case between Sri Lanka Insurance Corporation Limited (Appellant) and The Commissioner General of Inland Revenue (Respondent) addressed whether the determination of the Tax Appeals Commission (TAC) was time barred under the statutory time-limits, and the proper application of Value Added Tax (VAT) on the Appellant’s life insurance business, specifically the treatment of investment income derived from policyholder premiums. It was held that the statutory provision regarding the time bar for TAC determinations, although intended for strict compliance, was considered directory due to the absence of explicit penal consequences. Furthermore, the supply of financial services by the Appellant’s life insurance operations, particularly investment income, was held to be exempt from VAT under the