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136 CA Sri Lanka Integrated Annual Report 2024

Notes to the Financial Statements Contd.

24. NET FINANCE INCOME (CONTD.)
24.2 Finance cost
For the year ended 31 December 2024 2023
Rs.’000 Rs.’000
Interest on lease liability (3,738) (5,410)
Total finance cost (3,738) (5,410)

Net finance income 425,804 381,622

25. INCOME TAX EXPENSE
For the year ended 31 December 2024 2023
Rs.’000 Rs.’000
Income liable for tax 682,360 392,582
Charge for the year 95,530 54,961
Tax for Previous years 29,315 -
Total 124,845 54,961

Tax liability is computed at the rate of 14% on income liable to tax in line with the settlement for previous years of assessments.

26. EVENTS OCCURRING AFTER THE REPORTING PERIOD
There are no material events occurring after the reporting period that require adjustment or disclosure in the financial statements.

27. COMMITMENTS
There are no material capital commitments as at reporting date.

28. CONTINGENT LIABILITIES
The Institute had received assessments in respect of Value Added Tax (VAT) for the period commencing from 01 April 2012 to
31 December 2014 amounting to Rs. 61Mn and Nation Building Tax (NBT) for the period commencing from 01 July 2009 to 31
December 2014 amounting to Rs. 100Mn. Further, the Institute had also received an assessment in respect of Economic Service
Charge (ESC) for the period commencing from 01 April 2009 to 31 March 2012 amounting to Rs. 4.5Mn. The Institute had duly
appealed to the Tax Appeals Commission (TAC) against all the determinations of the Commissioner General of Inland Revenue
(CGIR) in respect of above assessments.

TAC has determined appeals against the assessments for ESC, VAT and NBT in favour of the CGIR. The Institute has appealed against
the determination of the TAC and the said appeals are currently pending before the Court of Appeal.

Having discussed with independent legal and tax experts and based on information available, the Institute is of the view that it is not
liable for assessed taxes in the above assessments and therefore, no provision has been made in the financial statements.