Hotel Yapawwa Paradise (Private) Ltd v. Commissioner General of Inland Revenue – CA TAX/0001/2018-2022

In the case between Hotel Yapawwa Paradise (Private) Ltd. and the Commissioner General of Inland Revenue, Department of Inland Revenue, the court addressed whether corrections of accounting entries or book entries constituted a “disposal” or “supply of goods” under the Value Added Tax (VAT) Act, and whether legal ownership of a building could be established solely through such entries or claims for depreciation. It was held that book entries or depreciation claims neither confer nor prove ownership, and do not amount to a taxable supply or disposal for VAT purposes. The ruling reaffirmed the necessity of a formal notarial deed for the legal transfer of immovable property, in line with statutory requirements and established precedent. The decision emphasized the principle that taxation base