ACT, No. 09 OF 2008

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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
INLAND REVENUE (AMENDMENT)
ACT, No. 9 OF 2008
[Certified on 29th February, 2008]
Printed on the Order of Government
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lanka of February 29, 2008
PRINTEDAT THEDEPARTMENT OFGOVERNMENTPRINTING,SRILANKA
TO BEPURCHASED AT THEGOVERNMENT PUBLICATIONSBUREAU, COLOMBO 5
Price : Rs. 18.00 Postage : Rs. 10.00

Inland Revenue (Amendment) 1
Act, No. 9 of 2008
[Certified on 29th February, 2008]
L.D.—O. 1/ 2008
ANACT TO AMEND THE INLAND REVENUE ACT, NO. 10 OF 2006
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows :—
1. This Act may be cited as the Inland Revenue Short title.
(Amendment) Act, No. 9 of 2008.
2. Section 7 of the Inland Revenue Act, No.10 of 2006, Amendment of
(hereinafter referred to as the “principal enactment”) is hereby section 7 of Act,
No. 10 of 2006.
amended as follows:—
(1) in sub-paragraph (xvii) of paragraph (b) of that
section, by the substitution for the words “being
profits and income of that society”, of the words
and figures “being profits and income of that society
for any year of assessment ending on or before
March 31, 2008 or for any year of assessment
commencing on or after April 1, 2013,”;
(2) in sub-paragraph (iii) of paragraph (g) of that section,
by the substitution for the words and figures
“Presidents Fund Act, No. 7 of 1978.”, of the words
and figures “Presidents Fund Act, No. 7 of 1978;”;
(3) by the addition immediately after paragraph (g) of
that section, of the following new paragraphs:—
“(h) the profits and income for every year of
assessment within a period of five years,
commencing on April 1, 2008, of any
registered society within the meaning of the
Co-operative Societies Law, No. 5 of 1972;
(i) the profits and income of the Api Wenuwen
Api Fund established by the Api Wenuwen
Api Fund Act, No.6 of 2008.”.
2—PL 002800—6,900 (02/2008)
2 Inland Revenue (Amendment)
Act, No. 9 of 2008
Amendment of 3. Section 8 of the principal enactment as amended by
section 8 of the
Act, No. 10 of 2007, is hereby further amended as follows:—
principal
enactment.
(1) in subsection (1) of that section:–
(a) by the substitution in paragraph (b) of that
subsection, for the words “one half of the
official emoluments paid to-”, of the words
and figures“one half of the official
emoluments for any year of assessment ending
on or before March 31, 2008, paid to-”;
(b) by the substitution in paragraph (d) of that
subsection, for the words “the emoluments
arising in Sri Lanka and any income”, of the
words and figures“the emoluments arising in
Sri Lanka prior to April 1, 2008, and any
income”;
(c) by the insertion immediately after paragraph
(d) of that subsection, of the following new
paragraph:–
“(dd) the emoluments arising in Sri Lanka and
any income not arising in Sri Lanka of
any individual who is an expert and who
is not a citizen of Sri Lanka and is
employed in Sri Lanka by any
undertaking which has entered into an
agreement with the Government of Sri
Lanka, being an agreement which
provides for the exemption from income
tax of such emoluments or by any
Strategic Development Project
Gazetted by the Board of Investment of
Sri Lanka under subsection (4) of
section 3 of the Strategic Development
Projects Act, No. 14 of 2008;
Inland Revenue (Amendment) 3
Act, No. 9 of 2008
For the purpose of this paragraph,
“expert” means an individual who
has expertise in such field as
may be determined by the
Commissioner-General, as being a
field in which sufficient expertise is
not available among the citizens of
Sri Lanka;”;
(d) in paragraph (h) of that subsection, by the
substitution for the words “granted to the
wife”, of the words“granted to the spouse”;
and
(e) in paragraph (p) of that subsection, by the
substitution for the words from “which in the
opinion of the Commissioner-General” to
the words “allotment of grant, as the case may
be; and”, of the words “which in the opinion
of the Commissioner-General is
reasonable”;and
(2) in subsection (3) of that section, by the substitution
for the words “whichever is earlier.”, of the words
“whichever is earlier, but not later than April 1,
2008.”. be exempt from income tax”.
4. Section 9 of the principal enactment as amended by Amendment of
section 9 of the
Act, No. 10 of 2007, is hereby further amended as follows:—
principal
enactment.
(1) by the substitution in paragraph (h) of that section,
for the words and figures “or any bank
established under the Regional Development Banks
Act, No. 6 of 1997”, of the words and figures “or any
bank established under the Regional Development
Banks Act, No. 6 of 1997 or any registered society
within the meaning of the Co-operative Societies
Law, No. 5 of 1972;”;
4 Inland Revenue (Amendment)
Act, No. 9 of 2008
(2) in paragraph (k) of that section, by the substitution
for the words “External Rupee Account.”, of the
words “External Rupee Account;”; and
(3) by the addition immediately after paragraph (k) of
that section, of the following new paragraphs:—
“(l) the interest or discount arising or accruing to
any non-resident citizen of Sri Lanka, from
the purchase of any Motherland Development
Bond denominated in foreing currency and
issued by or on behalf of the Government of
Sri Lanka;
(m) the interest accruing or arising on or after
April 1, 2008, from any investment made
outside Sri Lanka to any person resident in
Sri Lanka, where such interest is remitted to
Sri Lanka through a bank.”.
Amendment of 5. Section 10 of the principal enactment as amended by
section 10 of the Act, No. 10 of 2007, is hereby further amended in subsection
principal
enactment. (1) of that section, by the addition immediately after
paragraph (i) of that subsection of the following new
paragraph:—
“(j) any dividend paid on or after April 1, 2008, by a
company not resident in Sri Lanka to any
shareholder resident in Sri Lanka, where the amount
of such dividend is remitted to Sri Lanka through a
bank.”.
Amendment of 6. Section 11 of the principal to enactment is hereby
section 11 of the
amended by the repeal of subsection (2) of that
principal
enactment. section, and the substitution therefor of the
following subsection:—
“(2) There shall be exempt from income tax—
(a) income accruing to the owner of any house
from such house, the construction of which
is completed prior to April 1, 2008, being
Inland Revenue (Amendment) 5
Act, No. 9 of 2008
income for that year of assessment in which
such construction was completed and for
the four years of assessment immediately
succeeding that year of assessment, if such
house is used solely for residential
purposes:
Provided that where the floor area of the
house is one thousand and five hundred square
feet or less, the income accruing to the owner
shall be exempt from income tax for the year
of assessment in which the construction of
that house is completed and for the six years
of assessment immediately succeeding that
year of assessment; and
(b) income accruing to the owner of any house
from such house, the floor area of which is
five hundred square feet or less and the
construction of which is completed on or after
April 1, 2008, being income for that year of
assessment in which the construction was
completed and for the four years of assessment
immediately succeeding that year of
assessment, if such house is used solely for
residential purposes.”.
7. Section 13 of the principal enactment as amended by Amendment of
Act, No. 10 of 2007, is hereby further amended as follows:— section 13 of the
principal
(1) by the substitution in paragraph (a) of that section, enactment.
for the words “earned in any year of assessment in
foreign currency”, of the words and figures“earned
in any year of assessment prior to April 1, 2008, in
foreign currency”;
(2) by the substitution in paragraph (c) of that section,
for the words “the profits and income earned in
foreign currency”, of the words and figures,“the
profits and income earned in foreign currency in
any year of assessment ending on or before March
31, 2008,”;
6 Inland Revenue (Amendment)
Act, No. 9 of 2008
(3) by the substitution in paragraph (d) of that section,
for the words “the profits and income earned in
foreign currency”, of the words and figures“the
profits and income earned in foreign currency in
any year of assessment ending on or before March
31, 2008,”;
(4) by the insertion immediately after paragraph (dd) of
that section, of the following new paragraph:—
“(ddd) the profits and income earned in foreign
currency by any resident company, any
resident individual or any partnership in
Sri Lanka, from services rendered in or outside
Sri Lanka to any person or partnership outside
Sri Lanka, being services rendered in
the course of carrying on of any profession
or vocation as is specified by the
Commissioner- General by Notice published
in the Gazette, as being in the interest of the
national economy of Sri Lanka, if such profits
and income (less such amount, if any,
expended outside Sri Lanka as is considered
by the Commissioner-General to be reasonable
expenses) are remitted to Sri Lanka through a
bank;”;
(5) by the insertion immediately after paragraph (i) of
that section, of the following new paragraph:—
“(ii) the profits and income within the meaning of
paragraph (a) of section 3, arising from the
cutting and polishing of gems which are
brought to Sri Lanka and exported after such
cutting and polishing;”;
(6) by the insertion immediately after paragraph (x) of
that section, of the following new paragraph:—
“(xx) an amount equal to the interest payable to
any bank in Sri Lanka in respect of any loan
granted, where the full amount of such loan is
invested in any new undertaking referred to
in section 24C;”;
Inland Revenue (Amendment) 7
Act, No. 9 of 2008
(7) by the insertion immediately after paragraph (y) of
that section, of the following new paragraph:—
“(yy). any profits and income arising or accruing to
any company, partnership or body of persons
outside Sri Lanka, from any payment made in
respect of the use on or after April 1, 2008, of
any plant, machinery or equipment supplied
by such company, partnership or body of
persons to the Government of Sri Lanka, any
public corporation, any Government
Institution or to any other undertaking, for
the use in any project approved by the
Minister as being essential for the economic
development of Sri Lanka;”; and
(8) by the addition immediately after paragraph (z) of
that section, of the following new paragraphs:—
“(zz) the profits and income of any individual who
is not a citizen of Sri Lanka and who is
employed in Sri Lanka in any undertaking,
being profits and income arising or derived
from outside Sri Lanka during the period
commencing from April 1, 2008, and ending
on the date of cessation of such employment;
(zzz) the profits and income within the meaning of
paragraph (a) of section 3, of any undertaking
for the construction and sale of houses for low
income families under a scheme approved by
the Urban Development Authority or the
National Housing Authority, being houses the
floor area of which does not exceed five
hundred square feet, if the sale of any such
house takes place before April 1, 2013.”.
8. Section 17 of the principal enactment as amended by Amendment of
section 17 of the
Act, No. 10 of 2007, is hereby further amended in subsection
principal
(1) of that section, by the substitution for the words from “in enactment.
8 Inland Revenue (Amendment)
Act, No. 9 of 2008
which the undertaking commences to made profits” to the
end of that subsection, of the following words and figures:—
“in which the undertaking commences to make profits
from transactions entered into in that year of assessment
or from the commencement of the year of assessment
immediately succeeding the year of assessment in
which the undertaking completes a period of two years
reckoned from the date on which the undertaking
commences to carry on commercial operations,
whichever occurs earlier:
Provided that where the period for which the profits
and income are exempt from income tax commences
after March 31, 2008, the period for which such profits
and income are exempt, shall be three years.”.
Amendment of 9. Section 18 of the principal enactment is hereby
section 18 of the amended in subsection (1) of that section, by the substitution
principal
for the words “not more than twelve years as may be
enactment.
determined”, of the words “not more than twelve years
commencing from not later than March 31, 2009, as may be
determined”.
Amendment of 10. Section 19 of the principal enactment is hereby
section 19 of the amended in subsection (1) of that section,by the substitution
principal
for the words from “in which the undertaking commences to
enactment.
make profits” to the end of that subsection, of the following
words and figures:—
“in which the undertaking commences to make
profits from transactions entered into in that year of
assessment or from the commencement of the year of
accessment immediately succeeding the year of
assessment in which the undertaking completes a period
of two years reckoned from the date on which the
undertaking commences to carry on commercial
operations, whichever occurs earlier:
Provided that where the period for which the
profits and income are exempt from income tax
commences after April 1, 2008, the period for
which such profits and income are exempt, shall be
three years.”.
Inland Revenue (Amendment) 9
Act, No. 9 of 2008
11. Section 20 of the principal enactment is Amendment of
hereby amended in subsection (2) of that section as section 20 of the
principal
follows :—
enactment.
(1) by the substitution in paragraph (c) of that
subsecton, for the words and figures “April 1,
2008-”, of the words and figures “April 1,
2009-”; and
(2) by the substitution in paragraph (e) of that
subsection, for the words and figures “prior to April
1, 2008”, of the words and figures “prior to April 1,
2009”.
12. Section 21 of the principal enactment is hereby Amendment of
amended in paragraph (b) of subsection (2) of that section, section 21 of the
principal
by the substitution for the words and figures “not later than
enactment.
March 31, 2008”, of the words and figures “not later than
March 31, 2009.”.
13. The following new section is hereby inserted Insertion of new
immediately after section 21 of the principal enactment and section 21A in
the principal
shall have effect as section 21A of that enactment :—
enactment.
“Exemption 21A. (1) The profits and income within the
of profits and
meaning of paragraph (a) of section 3 (other
income of
undertakings than any profits and income from the sale of
relocated any capital asset) of any company, from any
from certain relocated undertaking referred to in subsection
districts. (2), shall be exempt from income tax for each
year of assessment within a period of five years,
commencing on April 1, 2009.
(2) For the purpose of subsection (1), a
“relocated undertaking” in relation to any
company and to any year of assessment
referred to in subsection (1), means an
undertaking—
(a) which prior to November 1, 2007,
was being carried on by that
company in any location within the
10 Inland Revenue (Amendment)
Act, No. 9 of 2008
administrative district of Colombo or
Gampaha, with not less than one
hundred individuals employed
therein ;
(b) which is relocated in any location
outside the administrative district
of Colombo and Gampaha and
commencing from a date not
later than March 31, 2009, continues
to—
(i) carry on commercial operations;
and
(ii) employ such number of
individuals as is not less than
the number employed as at
November 1, 2007,
throughout that year of assessment ;
(c) in respect of which the expenditure
incurred in the relocation is not less
than one hundred million rupees ;
and
(d) of which the profits and income
within the meaning of paragraph (a)
of section 3 (other than any profits
and income from the sale of any
capital asset) are exempt from
income tax under any other
provision of this Act or under any
agreement entered into with the
Board of Investment of Sri Lanka
under section 17 of the Board of
Investment of Sri Lanka Law, No. 4
of 1978, for a period extending
beyond April 1, 2009.”.
Inland Revenue (Amendment) 11
Act, No. 9 of 2008
14. Section 22 of the principal enactment is hereby Amendment of
section 22 of the
amended in subsection (1) of that section, by the substitution
principal
for the words from “in which the undertaking commences to enactment.
make profits”, to the end of that subsection, of the following
words and figures :—
“in which the undertaking commences to make profits
from transactions entered into in that year of assessment
or from the commencement of the year of assessment
immediately succeeding the year of assessment in which
the undertaking completes a period of two years reckoned
from the date on which the undertaking commences to
carry on commercial operations, whichever occurs
earlier:
Provided that where the period for which the profits
and income are exempt from income tax commences after
April 1, 2008, the period for which such profits and
income are exempt, shall be three years.”.
15. Section 23 of the principal enactment is hereby Amendment of
amended as follows :— section 23 of the
principal
enactment.
(1) in subsection (1) of that section:—
(a) by the substitution for the words “of any
venture capital company shall be exempt”,
of the words “of any venture capital
company, derived from any specified
investment in any project referred to in
paragraph (a), (b) or (c) hereafter, shall be
exempt” ; and
(b) by the addition immediately after the proviso
to that subsection, of the following further
proviso :—
“Provided further that, where the venture
capital company commences commercial
12 Inland Revenue (Amendment)
Act, No. 9 of 2008
operations on or after April 1, 2008, the period
for which the profits and income are exempt
from income tax, be three years.”; and
(2) in subsection (6) of that section,
by the repeal of the definitions of the
expressions “non-performing” and “under
performing”.
Amendment of 16. Section 24 of the principal enactment
section 24 of the is hereby
principal
as follows :—
enactment.
(1) in subsection (1) of that section, by the
substitution for the words from “shall be
exempt from income tax” to the end of that
subsection, of the words “shall be exempt
from income tax for a period of three years
commencing from the year of assessment in
which such business commences to make
profits from transactions entered into in that
year of assessment or from the commencement
of the year of assessment immediately
succeeding the year of assessment in which
such business completes a period of two years
reckoned from the date on which the business
commences to carry on commercial
operations, whichever earlier.”; and
(2) by the repeal of subsection (2) of that section
and the substitution therefor of the following
subsection:—
“(2) The provisions of subsection (1)
shall apply in respect of any business of
providing accommodation to tourists in
Manor Houses or Thematic Bungalows,
carried on by a person registered on or after
April 1, 2003 with the Ceylon Tourist Board
and for a period of ten years from the date of
such registration.”.
Inland Revenue (Amendment) 13
Act, No. 9 of 2008
17. The following new sections are hereby inserted Insertion of new
sections 24C and
immediately after section 24B of the principal enactment
24D in the
and shall have effect as section 24C and section 24D of that principal
enactment :— enactment.
“Exemption 24c. (1) The profits and income within the
from income meaning of paragraph (a) of section 3 (other
tax of the
than any profits and income from the disposal
profits and
income of of any capital asset) from the operation of any
any new new undertaking referred to in subsection (2),
undertakings shall be exempt from income tax for a period
located
of five years commencing from the year of
within the
Eastern assessment in which such undertaking
Province. commences to make profits from transactions
entered into in that year of assessment or from
the commencement of the year of assessment
immediately succeeding the year of assessment
in which such undertaking complets two years
reckoned from the date on which the
undertaking commences to carry on commercial
operations, whichever occurs earlier.
(2) For the purpose of subsection (1),
“new undertaking” means an undertaking
which—
(a) is not formed by the splitting up,
reconstruction or the acquisition of an
undertaking which was in existence
before November 7, 2007 ;
(b) commences commercial operations on
or after November 7, 2007 ; and
(c) is located within the Eastern Province,
and the sum invested in the undertaking before
April 1, 2010 (other than in land), is not less
than thirty million rupees.
14 Inland Revenue (Amendment)
Act, No. 9 of 2008
Exemption 24D. (1) The profits and income within the
of the profits meaning of paragraph (a) of section 3 (other
and income
of any new than any profits and income from the sale of
undertaking any capital asset) of any new undertaking
located in (other than any specified undertaking) located
any lagging in any lagging region and referred to in
region.
subsection (2), shall be exempt from income
tax for a period of five years commencing from
the year of assessment in which such
undertaking commences to make profits from
transactions entered into in that year of
assessment or from the commencement of the
year of assessment immediately succeeding the
year of assessment in which the undertaking
completes two years reckoned from the date
on which the undertaking commences to carry
on commercial operations, whichever occurs
earlier.
(2) For the purpose of subsection (1) :—
“lagging region” in relation to any year of
assessment means any Divisional
Secretary’s Division determined by the
Minister in consultation with any
appropriate authority and specified by
Order published in the Gazette as being
in a state of economic backwardness in
the year of assessment immediately
preceding that year of assessment ;
“new undertaking” means an undertaking—
(a) which commences commercial
operations on or after April 1,
2008 ; and
(b) in which the sum invested in
the acquisition of capital
assets (other than land), after
November 7, 2007 but before
Inland Revenue (Amendment) 15
Act, No. 9 of 2008
March 31, 2010, is not less than
thirty million rupees ; and
“specified undertaking” means an
undertaking engaged in the sale of any
article not produced or manufactured
by such undertaking.”.
18. Section 25 of the principal enactment as amended Amendment of
by Act, No.10 of 2007, is hereby farther amended as section 25 of the
principal
follows :— enactment.
(1) in subsection (1) of that section:—
(a) by the substitution in sub-paragraph (ii) of
paragraph (b) of the proviso to paragraph (a)
of that subsection, for the words “being a ship
which is owned or chartered by a company”,
of the words “being a ship which is owned by
a company” ; and
(b) by the substitution in paragraph (v) of the
proviso to paragraph (k) of that subsection,
for all the words from “his place of
employment or vice versa.”, to the end of
that proviso, of the words “his place of
employment or vice versa.” ;
(2) in subsecton (2) of that section, by the
substitution for the words and figure “of
subsection (1)”, of the words and figure “of
subsection (1)” ;
(3) in subsection (3) of that section, by the
substitution in paragraph (ii) of the further
proviso to paragraph (b) of that subsection,
for the words “for the replacement of such
capital asset”, of the words “for the
replacement of such capital asset” ; and
16 Inland Revenue (Amendment)
Act, No. 9 of 2008
(4) in subsection (7) of that section, by the
substitution in sub-paragraph (vi) of
paragraph (f) of that subsection, for the words
“the proceeds of disposal of such asset, less
any cost of acquisition other than lease rental
paid on such assets by such person acquiring
it”, of the words “the proceeds of disposal of
such assets, less any cost of acquisition other
than lease rental paid on such assets by such
person acquiring it”.
Amendment of 19. Section 26 of the principal enactment as amended
section 26 of the by Act, No.10 of 2007 is hereby further amended as
principal
enactment. follows :—
(1) in subsection (1) of that section, by the addition
immediately after paragraph (u) of that subsection,
of the following paragraph :—
“For the purposes of paragraphs (s), (t) and (u), of
this subsection, the term “employee” shall have
the same meaning as given to such term in section
131 of this Act; and
(2) in subsection (2) of that section, by the substitution
for the words and figures “under paragraph (a) or
paragraph (d) of subsection (1) of section 25 :-”, of
the words and figures “under paragraph (a) or
paragraph (c) of subsection (1) of section 25 :—”.
Amendment of 20. Section 32 of the principal enactment as amended
section 32 of the
by Act, No.10 of 2007 is hereby further amended as
principal
enactment. follows :—
(1) in subsection (1) of that section—
(a) by the substitution for the words “for any year
of assessment shall be his total statutory
income for the year, other than the-”, of the
words “for any year of assessment shall be his
total statutory income for the year other than
the-”; and
Inland Revenue (Amendment) 17
Act, No. 9 of 2008
(b) in paragraph (c) of that subsection, by the
substitution for the words and figures
“deducted under section 134 or section 135,
as the case may be;”, of the words and figure
“deducted under section 134;”;
(2) in subsection (2) of that section, by the substitution
in the definition of the expression “interest income”,
for the words and figure “sub-paragraph (b) of
subsection (3) of this section,”, of the words and
figure “sub-paragraph (b) of this subsection,”;
(3) in subsection (3) of that section, by the addition
immediately after paragraph (d) of that subsection
of the following new paragraphs :—
“(e) the profits and income of such person from
the sale of any Rupee Denominated Treasury
Bond, purchased out of funds drawn from
any Treasury Bond Investment External
Rupee Account ;
(f) where such person is the Credit Guarantee
Fund of the Central Bank of Sri Lanka,
the interest accruing to such Fund from
any Treasury Bond issued under the
Registered Stocks and Securities Ordinance
(Chapter 420) or from any Treasury Bill
issued under the Local Treasury Bills
Ordinance (Chapter 417) ;
(g) interest on which income tax has been
deducted under section 95 and accruing to
any person or partnership out side Sri Lanka,
on any corporate debt security within the
meaning of section 135, issued by or on behalf
of any company in Sri Lanka and purchased
by such person or partnership out of foreign
currency brought into Sri Lanka and
converted into Sri Lanka currency for such
purchase ; and
18 Inland Revenue (Amendment)
Act, No. 9 of 2008
(h) the profits and income from the sale of any
gem on which tax has been deducted by the
National Gem and Jewellery Authority
established by the National Gem and
Jewellery Authority Act, No.50 of 1993,
under subsection (1) of section 161A of this
Act.”;
(4) in subsection (5) of that section—
(a) in paragraph (a) of that subsection, by the
substitution for the words “such person for
any year of assessment by way of”, of the
words “such person for any year of assessment
by way of ”;
(b) in paragraph (b) of that subsection, by the
substitution for the words “referred to in
paragraph (c),”, of the words “referred to in
paragraph (c) or paragraph (d),”;
(c) by the insertion immediately after paragraph
(c) of that subsection, of the following new
paragraph :—
“(d) any loss incurred on or after April 1,
2008, in any business of finance leasing
to the extent of any profits from such
business included in such total
statutory income and the balance, if
any, of such loss after such deduction,
shall be deemed to be a loss for the year
of assessment immediately succeeding
that year of assessment.”;
(5) in paragraph (a) of subsection (6) of that section,
by the substitution for the words and figures
“section 23 or section 24 of this Act,”, of the words
and figures “section 23, section 24, section 24A,
section 24B, section 24C or section 24D of this
Act,”; and
Inland Revenue (Amendment) 19
Act, No. 9 of 2008
(6) in subsection (7) of that section, by the substitution
for the words “shall be ascertained in the manner
provided in this Act”, of the words “shall be
ascertained in the manner provided for in this
Act”.
21. Section 34 of the principal enactment as amended Amendment of
section 34 of the
by Act, No.10 of 2007 is hereby further amended as principal
follows :— enactment.
(1) in subsection (2) of that section :—
(a) by the addition at the end of sub-paragraph
(viii) of paragraph (b) of that subsection, of
the following new sub-paragraph :—
“(ix) the Api Wenuwen Api Fund
established by Api Wenuwen Api Fund
Act, No. 6 of 2008;”;
(b) by the substitution in paragraph (h) of that
section, for the words “(h) expenditure
incurred” to the words “of any film:”, of the
following :-
“(h) (i) expenditure incurred by any
person in the production at a
cost of not less than five million
rupees, of any film the production
of which was completed prior to
April 1, 2007 ; or
(ii) expenditure incurred by any
person in the production at a cost
of not less than five million rupees,
of any film the production of
which was completed after
April 1, 2007:”;
20 Inland Revenue (Amendment)
Act, No. 9 of 2008
(c) by the addition immediately after paragraph
(m) of that subsection, of the following new
paragraphs :—
“(n) expenditure not exceeding twenty
five million rupees incurred in the
construction and equipping of a
cinema, being a cinema—
(i) in which the exhibition
of cinematographic films
commences on or after April 1,
2008 ; and
(ii) which is certified by the National
Film Corporation of Sri Lanka
established by the National Film
Corporation of Sri Lanka Act, No.
47 of 1971 as being equipped
with digital technology, Digital
Theatre System and Dolby Sound
Systems;
(o) expenditure not exceeding ten million
rupees incurred in the upgrading of a
cinema, being a cinema—
(i) in which the exhibition of
cinematographic films had
commenced prior to April 1,
2008;
(ii) which was not equipped with
digital technology, Digital
Theatre Systems and Dolby
Sound Systems, prior to April 1,
2008; and
(iii) which is certified by the National
Film Corporation of Sri Lanka,
established by the National
Film Corporation of Sri Lanka
Inland Revenue (Amendment) 21
Act, No. 9 of 2008
Act, No. 47 of 1971 as being
equipped on or after April 1,
2008, with digital technology,
Digital Theatre Systems and
Dolby Systems;
(p) expenditure incurred by any company
in the relocation of any relocated
undertaking referred to in subsection
(2) of section 21A; and
(q) any sum invested by any person in an
undertaking referred to in paragraph
(zzz) of section 13.”;
(2) in subsection (4) of that section :—
(a) by the substitution in sub-paragraph (i) of
paragraph (a) of that subsection, for the words
and figure “(i), (j) and (k) of subsection (2)”,
of the words and figure “(i), (j), (k), (n), (o) and
(q) of subsection (2)”;
(b) by the substitution in sub-paragraph (iii) (B)
of paragraph (a) of that subsection, for the
words “twenty five million rupees ,”, of the
words “thirty five million rupees,”;
(c) by the addition immediately after sub-
paragraph (vi) of paragraph (a) of that
subsection, of the following new
paragraphs:—
“(vii) in respect of all qualifying payments
referred to in paragrahp (n) of
subsection (2) made by him in that
year of assessment, shall not exceed
twenty five million rupees;
(viii) in respect of all qualifying payments
referred to in paragraph (o) of
subsection (2) made by him in that
year of assessment, shall not exceed
ten million rupees;”;
22 Inland Revenue (Amendment)
Act, No. 9 of 2008
(d) by the substitution in sub-paragraph (i) of
paragraph (b) of that subsection, for the words
and figures “(k),(l) and (m) of subsection (2),”,
of the words and figures “(k), (l), (m), (n), (o)
and (q) of subsection (2),”;
(e) by the substitution in sub-paragraph (ii) (B)
of paragraph (b) of that subsection for the
words “twenty five million rupees,”, of the
words thirty five million rupees,”;
(f) by the addition immediately after sub-
paragraph (iv) of paragraph (b) of that
subsection of the following new sub-
paragraph:—
“(v) in respect of all qualifying payments
referred to paragraph (a) of subsection
(2) by made by that company, shall
not exceed one fifth of the assessable
income or five hundred thousand
rupees, whichever is less ;
(vi) in respect of all qualifying payments
referred to in paragraph (n) of
subsection (2) made by that company
in that year of assessment, shall not
exceed twenty five million rupees;
(vii) in respect of all qualifying payments
referred to in paragraph (o) of
subsection (2) made by that company
in that year of assessment, shall not
exceed ten million rupees.”;
(3) in subsection (5) of that section, by the substitution
for the words “paragraph (c), paragraph (l) or
paragraph (m) of subsection (2)”, of the words
“paragraph (c), paragraph (h) (ii), paragraph (l),
paragraph (m), paragraph (n), paragraph (o) or
paragraph (q) of subsection (2),”; and
(4) in subsection (6) of that section, by the substitution
for the words “referred to in paragraph (h) of
Inland Revenue (Amendment) 23
Act, No. 9 of 2008
subsection (2)”, of the words “referred to in
paragraph (h) (i) of subsection (2)”.
22. Section 35 of the principal enactment is hereby Amendment of
amended in the proviso to subsection (2) of that section, by section 35 of the
principal
the substitution for the words and figure “rate specified in
enactment.
Part1 of the First Schedule”, of the words and figure “rate
specified in Part V of the First Schedule”.
23. The following new section is hereby inserted Insertion of new
immediately after section 40 of the principal enactment and section 40A in
the principal
shall have effect as section 40A of that enactment:—
enactment.
“Rates of 40A. Such part of the taxable income
income tax
of any citizen of Sri Lanka for any year
on the profits
from of assessment commencing on or after
employment April 1, 2008, as consists of his profits from
of any pilot employment as a pilot of any airline licensed
of any airline under the Air Navigation Act (Chapter 365),
licensed
shall, notwithstanding anything to the contrary
under the Air
Navigation in any other provision of this Act, be charged
Act. with income tax at the appropriate rates
specified in Part I of the First Schedule to this
Act, provided that the rate of at which income
tax is so charged, shall not in any case exceed
20 per centum.”.
24. Section 46 of the principal enactment is hereby Amendment of
section 46 of the
amended in subsection (1) of that section, by the substitution
principal
for the words “in any other provisions of this Chapter, or enactment.
Chapter X, be chargeable with income tax”, of the words “in
other provisions, but subject to the provisions of section 16
of this Act, be chargeable with income tax”.
25. Section 48 of the principal enactment is hereby Replacement of
repealed and the following section substituted therefor:— section 48 of the
principal
“Rates of 48. (1) Such part of the taxable income of enactment.
income tax
any person for any year of assessment referred
for periods
after the to in subsection (2), which consists of the
expiry of the profits and income from:—
tax
exemption (a) any specified undertaking referred to
period. in sections 17, 18 or 19;
24 Inland Revenue (Amendment)
Act, No. 9 of 2008
(b) any new undertaking referred to in
sections 20, 22, 24C and 24D;
(c) any relocated undertaking referred to
in sections 21 and 21A;
(d) any venture capital company referred
to in section 23;
(e) any business referred to in section 24;
(f) any new cinema or upgraded cinema
referred to in section 24A; or
(g) any re-opened abandoned factory
referred to in section 24B,
shall, notwithstanding anything to the contrary
in any other provision of this Act, be taxable at
the rate specified in that subsection, as being
applicable to that year of assessment.
(2) The rate of tax applicable to the year of
assessment immediately succeeding—
(a) the end of the period for which the
profits and income are exempt from
income tax, being any year of
assessment commencing on or after
April 1, 2008, (hereinafter referred to
as the “first post-exemption year”) shall
be five per centum;
(b) the end of the first post-exemption year
(hereinafter referred to as the “second
post-exemption year”) shall be ten per
centum; and
(c) the end of the second post- exemption
year shall be fifteen per centum.”.
Inland Revenue (Amendment) 25
Act, No. 9 of 2008
26. Section 53 of the principal enactment is hereby Amendment of
amended in subsection (3) of that section, by the substitution section 53 of the
principal
for the words “shall be fifteen per centum.”, of the words
enactment.
“shall for any year of assessment commencing from
April 1, 2008, be ten per centum.”.
27. Section 54 of the principal enactment is hereby Amendment of
amended by the substitution for the words and figures section 54 of the
principal
“referred to in paragraph (a) of subsection (1) of section
enactment.
10:—”, of the words and figures “ referred to in subsection
(1) of section 10:—”.
28. Section 61 of the principal enactment as amended Amendment of
by Act, No.10 of 2007, is hereby further amended in section 61 of the
principal
paragraph (b) of subsection (1) of that section as follows:—
enactment.
(1) by the substitution in sub-paragraph (ii) of that
paragraph, for the words “gross dividends
distributed by such company in such preceding
year, where such company has in the preceding
year distributed”, of the words “gross dividends
distributed by such company out of such
distributable profits, within a period of
eighteen months immediately succeeding the
commencement of such preceding year, where such
company has within such period distributed”; and
(2) in the definition in that paragraph of the expression
“relevant part”:—
(a) by the repeal of paragraph (b) of that
definition, and the substitution therefor of
the following paragraph:—
“(b) to any registered society referred to in
paragraph (h) of section 7, during the
period referred to in that paragraph;”;
(b) by the addition immediately after paragraph
(d) of that definition, of the following new
paragraphs:—
26 Inland Revenue (Amendment)
Act, No. 9 of 2008
“(e) to any unit trust or to any mutual fund;
(f) to Api Wenuwen Api Fund established
by the Api Wenuwen Api Fund Act,
No.6 of 2008;”.
Amendment of 29. Section 62 of the principal enactment is hereby
section 62 of the amended by the repeal of paragraph (a) of subsection (2) of
principal
that section, and the substitution therefor of the following
enactment.
paragraph :—
“(a) sums remitted or retained abroad out of the profits
and income chargeable with income tax of the
company and any sum received outside Sri Lanka
by or on behalf of such company in relation to any
trade, business, profession or vocation carried on
in Sri Lanka by such company, the profits of which
are chargeable with income tax in Sri Lanka, such
sums not including any dividend paid by a resident
company to such non-resident company;”.
Amendment of 30. Section 65 of the principal enactment as amended
section 65 of the by Act, No.10 of 2007 is hereby further amended as
principal
follows:—
enactment.
(1) in subsection (1) of that section, by the insertion
immediately after paragraph (b) of that subsection,
of the following new paragraphs:—
“(c) the Api Wenuwen Api Fund established by
the Api Wenuwen Api Fund Act, No.6 of
2008;
(d) any registered society referred to in paragraph
(h) of section 7, during the period referred to
in that paragraph;
(e) any person who is exempt from income tax
under section 10 in respect of any dividend
received by such person as referred to in that
section,”;
Inland Revenue (Amendment) 27
Act, No. 9 of 2008
(2) by the addition immediately after subsection (3) of
that section, of the following new subsection:—
“(4) The excess of the aggregate of the deductions
made by any resident company under subsection
(1), over the tax payable by such company under
sub-paragraph (i) of paragraph (b) of subsection (1)
of section 61, shall be remitted to the Commissioner-
General within a period of thirty days from the date
on which the gross dividend referred to in that
subsection, is paid.”.
31. Section 79 of the principal enactment is hereby Amendment of
amended in subsection (7) of that section as follows:— section 79 of the
principal
enactment.
(1) in the proviso to that subsection, by the substitution
for the words “employment in Sri Lanka.”, of the
words “employment in Sri Lanka:”; and
(2) by the addition at the end of the proviso to that
subsection, of the following further proviso:—
“Provided further that no individual shall be
deemed to be a non-resident under the provisions
of this subsection, on or after April 1, 2008.”.
32. Section 95 of the principal enactment is hereby Amendment of
amended in the proviso to subsection (1) of that section, as section 95 of the
principal
follows:— enactment.
(1) in paragraph (a) of that proviso, by the substitution
for the words “and chargeable as aforesaid; and”, of
the words “and chargeable as aforesaid;”; and
(2) by the insertion immediately after paragraph (a) of
that proviso of the following new paragraph:—
“(aa) the deduction of tax under this section from
interest on any corporate debt security
referred to in paragraph (g) of subsection
28 Inland Revenue (Amendment)
Act, No. 9 of 2008
(3) of section 32 and paid or credited on or
after April 1, 2008, shall, notwithstanding
anything to the contrary in any other
provision of this Act, be at the rate of ten
per centum; and”.
Amendment of 33. Section 102 of the principal enactment is hereby
section 102 of
amended in subsection (3) of that section, by the substitution
the principal
enactment. for the words “the Commissioner-General may reduce or
remit the tax”, of words “the Commissioner-General may
reduce or remove the tax”.
Amendment of 34. Section 104 of the principal enactment is here by
section 104 of amended in subsection (2) of that section, by the substitution
the principal
for the words and figure “addressed to the person referred to
enactment.
in subsection (1),”, of the words and figure “addressed to the
person who carries on either the one or the other or both of
the two associated undertakings, referred to in
subsection (1),”.
Amendment of 35. Section 107 of the principal enactment is hereby
section 107 of amended as follows:—
the principal
enactment. (1) in the proviso to subsection (1) of that section , by
the repeal of paragraph (a) of that proviso and the
substitution therefor of the following paragraph:—
“(a) where such trade, business, profession or
vocation is being carried on or exercised by
any quoted public company or any other
company having a turnover of not less than
two hundred and fifty million rupees or net
profit of not less than one hundred million
rupees for the year, then, notwithstanding that
a notice under this section has not been given
to such quoted public company or other
company , furnish for that year of assessment
or for that other period, in respect of which
the statutory income for that year of
assessment is computed, such statement and
such schedules as may be specified by the
Commissioner-General, by notice published
in the Gazette;”;
Inland Revenue (Amendment) 29
Act, No. 9 of 2008
(2) by the repeal of the proviso to subsection (2) of that
section, and the substitution therefor of the
following proviso:—
“Provided that a statement of accounts in
support of a return of income for any year of
assessment or for any other period on the profits of
which the statutory income for that year of
assessment is computed—
(a) furnished by any quoted public company, in
respect of any trade, business, profession or
vocation carried on or exercised by such
quoted public company;
(b) furnished by any other company in respect of
any trade, business, profession or vocation
carried on or exercised by such company,
where the turnover from such trade, business,
profession or vocation, for that year of
assessment or for that other period, is not less
than two hundred and fifty million rupees or
the statutory income from that trade, business,
profession or vocation for that year of
assessment or for that other period, is not less
than one hundred million rupees; or
(c) furnished by any partner of any partnership
or by any person other than a company,
in respect of any trade, business, profession
or vocation carried on or exercised by
such partnership or by such person, where
the turnover from such trade, business,
profession or vocation, for that year of
assessment or for that other period, is not less
than fifty million rupees or the divisible and
protits of that partnership or the statutory
income of such person, from that trade,
business, profession or vocation for that year
30 Inland Revenue (Amendment)
Act, No. 9 of 2008
of assessment or for that other period, as the
case may be, is not less than twenty five
million rupees,
shall be prepared on the basis of an audit by an
approved accountant.”.
Amendment of 36. Section 113 of the principal enactment as amended
section 113 of by Act, No.10 of 2007, is hereby further amended in
the principal
sub- paragraph (b) of subsection (3) of that section, by the
enactment.
substitution for the words “shall be paid on or before the
fifteenth day of May of the year of assessment immediately
succeeding the year of assessment”, of the words “shall be
paid on or before the thirtieth day of September of that year
of assessment”.
Amendment of 37. Section 131 of the principal enactment is hereby
section 131 of amended in the definition of the term “employer”, by the
the principal
substitution for the words “body of persons of any
enactment.
organization -”, of the words “ body of persons or any
organization, other than any Government Institution referred
to in Chapter XV:—”.
Amendment of 38. The heading of Chapter XV of the principal
the Heading to enactment is hereby repealed and the following heading
Chapter XV of
substituted therefor :—
the principal
enactment.
“PROVISIONS RELATING TO THE PAYMENT OF INCOME TAX BY A
GOVERNMENT INSTITUTION AND DEDUCTION FROM TAX ON OFFICIAL
EMOULMENTS OF ANY EMPLOYEE OF ANY GOVERNMENT
INSTITUTION.”.
Amendment of 39. Section 132 of the principal enactment is hereby
section 132 of amended as follows:—
the principal
enactment.
(1) in subsection (1) of that section—
(a) by the substitution for the words “for any year
of assessment, shall be paid”, of the words
and figures “for any year of assessment
ending on or before March 31, 2008, shall be
paid”; and
Inland Revenue (Amendment) 31
Act, No. 9 of 2008
(b) by the repeal of the proviso to that subsection
and the substitution therefor of the following
proviso:—
“Provided that such income tax so paid
shall neither be refunded to such employee
either in whole or in part or deducted from
income tax otherwise payable by such
employee, for that year of assessment.”;
(2) in subsection (2) of that section, by the substitution
for the words “the income tax in respect of”, of the
words “the income tax referred to in subsection (1),
in respect of”; and
(3) in subsection (4) of that section, by the repeal of
the definition of the expression “Government
Institution”.
40. The following new section is hereby inserted Insertion of
section 132A in
immediately after section 132 of the principal enactment
the principal
and shall have effect as section 132A of that enactment:— enactment.
“Deduction 132A. (1) There shall be deducted from the
from income
income tax payable for any year of assessment
tax on the
official commencing on or after April 1, 2008, by any
emoluments employee of any Government Institution,
of any
whose assessable income for that year of
employee of
any assessment includes any official emoluments,
Government such amount as referred to in subsection (2).
Institution.
(2) The deduction shall be an amount which
bear to the income tax charged on such
employee as referred to in subsection (1) for
such year of assessment, the same proportion
which the official emoluments (other than any
pension, bonus, incentive payments, reward,
32 Inland Revenue (Amendment)
Act, No. 9 of 2008
share of fines or other similar payment) of such
employee for that year of assessment, bear to
the total statutory income of that employee for
that year of assessment.
For the purpose of subsections (1) and (2) of
this section, “official emoluments” means
profits from employment as specified in
paragraph (a) of subsection (1) of section 4,
received for services rendered.
(3) For the purpose of this Chapter,
“Government Institution” means any
institution or person which employs
individuals holding any office referred to in
paragraph (b) of subsection (1) of section 8.”.
Amendment of 41. Section 133 of the principal enactment is hereby
section 133 of
amended as follows :—
the principal
enactment.
(1) in subsection (3) of that section:—
(a) in paragraph (a) of that subsection—
(i) by the substitution in sub-paragraph (ii)
of that paragraph, for the words “of Sri
Lanka; or”, of the words “of Sri Lanka;”;
(ii) by the addition immediately after
sub-paragraph (iii) of that paragraph,
of the following new sub-paragraphs:—
“(iv) any registered society referred to
in paragraph (h) of section 7,
being interest paid to such
society during the period
referred to in that paragraph; or
(v) the Api Wenuwen Api Fund
established by the Api Wenuwen
Api Fund Act, No. 6 of 2008;”;
Inland Revenue (Amendment) 33
Act, No. 9 of 2008
(b) by the substitution in paragraph (c) of that
subsection, for the words and figure “or
section 96.”, of the words and figure “or
section 95.”;
(2) in subsection (4) of that section, by the substitution
for the words “under this section”, of the words and
figure “under subsection (1) of this section”;
(3) in subsection (5) of that section, by the substitution
for the words “where any interest payable to any
person”, of the words and figures “ where any
interest referred to in subsection (1) or any excess
referred to in subsection (2) payable to any person”;
(4) in subsection (7) of that section—
(a) by the substitution for the words and figure
“deducts income tax in accordance with the
provisions of subsection (1) from any interest
paid by it”, of the words and figures “deducts
income tax from the interest paid in
accordance with subsection (1) or on the
excess in accordance with subsection (2)”;
(b) by the substitution for the word “interest”
appearing in paragraphs (a), (c) and (d) of that
subsection, of the words “interest or excess”;
and
(5) in subsection (8) of that section, by the substitution
in paragraph (d) of that subsection for the word
“interest”, wherever it appears in that paragraph of
the words “interest or excess”.
42. Section 152 of the principal enactment is hereby Repeal of
repealed. section 152 of
the principal
enactment.
34 Inland Revenue (Amendment)
Act, No. 9 of 2008
Amendment of 43. Section 153 of the principal enactment as amended
section 153 of by Act, No.10 of 2007, is hereby further amended as
the principal
enactment. follows:—
(1) in subsection (1) of that section by the addition
immediately after the proviso to that subsection, of
the following further proviso:—
“Provided further that where it is proved to the
satisfaction of the Commissioner-General that any
person or partnership is registered with the
Department of Inland Revenue as a person or
partnership chargeable with the Economic Service
Charge under the Economic Service Charge Act,
No.13 of 2006, the Commissioner-General shall
direct that the provisions of this section relating to
the deduction of income tax shall not apply, in
relation to any specified fee payable on or after
April 1, 2008 to such person or partnership.”;
(2) in subsection (2) of that section, by the substitution
in the definition of the expression “specified fee”
for the words “or occupation of any”, of the words
“or occupation, otherwise than as a place of
residence, of any”.
Amendment of 44. Section 155 of the principal enactment is hereby
section 155 of amended by the substitution for the words “such rent, lease
the principal
enactment. rent or other payment.”, of the following words and figures:—
“such rent, lease rent or other payment:
Provided that where it is proved to the
satisfaction of the Commissioner-General that any
person or partnership is registered with the
Department of Inland Revenue as a person or
partnership, chargeable with the Economic
Service Charge under the Economic Service Charge
Act, No. 13 of 2006, the Commissioner-General shall
direct that the provisions of this section relating to
Inland Revenue (Amendment) 35
Act, No. 9 of 2008
the deduction of income tax shall not apply, in
relation to such rent, lease rent or other payment
payable on or after April 1, 2008, to such person or
partnership.”.
45. Section 156 of the principal enactment is hereby Amendment of
amended as follows:— section 156 of
the principal
enactment.
(1) in subsection (1) of that section, by the substitution
for the words “credit for income tax so deducted,
duties of banks and financial institutions,”, of the
words “credit for income tax so deducted, issue of
directions, duties of banks and financial
institutions,”; and
(2) by the addition immediately after subsection (2) of
that section, of the following new subsections:—
“(3) Any person or partnership who or which
is liable to deduct income tax from any rent, lease
rent or other payments made by such person or
partnership under this Chapter, shall apply for and
obtain a registration number from the
Commissioner-General thirty days prior to the
commencement of such deduction of tax and shall
furnish a return on a monthly basis, containing such
particulars as may be specificed by the
Commissioner-General in relation to such
deductions.
(4) Any person or partnership who or which
does not register or does not furnish any return as
required under the subsection (3), shall be liable to
a penalty not exceeding fifty thousand rupees
which may be imposed by the Commissioner-
General.”.
46. Section 160 of the principal enactment is hereby Amendment of
amended by the addition immediately after the proviso to section 160 of
the principal
that section, of the following further proviso:— enactment.
“Provided further that where it is proved to the
satisfaction of the Commissioner-General that any
36 Inland Revenue (Amendment)
Act, No. 9 of 2008
person or partnership is registered with the
Department of Inland Revenue as a person or
partnership chargeable with the Economic Service
Charge under the Economic Service Charge Act, No.
13 of 2006, the Commissioner-General shall direct
that the provisions of this section relating to the
deduction of income tax shall not apply, in relation
to any annuity, royalty or management fee payable
on or after April 1, 2008, to such person or
partnership.”.
Insertion of a 47. The following new Chapter is hereby inserted
new Chapter immediately after Chapter XX of the principal enactment and
XXA in the
shall have effect as Chapter XXA of that enactment:—
principal
enactment.
“CHAPTER XXA
DEDUCTION OF INCOME TAX FROM THE SALE PRICE OF ANY GEM
SOLD AT ANY AUCTION CONDUCTED BY THE NATIONAL GEM AND
JEWELLERY AUTHORITY.
National 161A. (1) The National Gem and Jewellery
Gem and Authority established by the National Gem and
Jewellery
Jewellery Authority Act, No. 50 of 1993, shall
Authority to
deduct deduct from the sale price of any gem sold at
income tax any auction conducted by it, income tax of an
from the sale amount equal to 2.5 per centum of the sale price
price of any of such gem from the sum payable to the seller
gem sold at
of such gem and at the time such sum is paid to
any auction.
the seller.
(2) The provisions of Chapter XVI relating
to the deduction of income tax from interest
paid by banks and financial institutions, duties
of banks and financial institutions, default in
the deduction of income tax, issue of
assessments on banks and financial institutions,
appeals and penalty for default, shall, mutatis
mutandis apply to and in relation to the
deduction of income tax from the sale price of
Inland Revenue (Amendment) 37
Act, No. 9 of 2008
any gem, duties of the National Gem and
Jewellery Authority making such sale, default
in the deduction of income tax, issue of
assessments on the National Gem and Jewellery
Authority, appeals and penalty for default under
this Chapter, as if there were substituted in
Chapter XVI for the words “banks and financial
institutions”, of the words “National Gem and
Jewellery Authority”, and for the word
“interest”, of the words “sale price of any gem
sold”, wherever they appear in that Chapter.”.
48. Section 162 of the principal enactment is hereby Amendment of
amended as follows:— section 162 of
the principal
enactment.
(1) by the substitution for the words “an amount equal
to fifteen per centum of those moneys,”, of the words
“an amount equal to ten per centum of those
moneys,”; and
(2) by the substitution in the marginal note to that
section, for the words “fifteen per centum”, of the
words “ten per centum”.
49. Section 163 of the principal enactment is hereby Amendment of
amended as follows:— section 163 of
the principal
enactment.
(1) in subsection (1) of that section, by the substitution
for the words “after the fifteenth day of November
immediately succeeding”, wherever those words
appear in that subsection, of the words “after the
fifteenth day of September immediately
succeeding” ; and
(2) in paragraph (b) of subsection (8) of that section, by
the substitution for the words “sworn an affidavit
that no fraud, evasion or willful default as been
committed”, of the words “sworn an affidavit that
no fraud, evasion or willful default has been
committed”.
38 Inland Revenue (Amendment)
Act, No. 9 of 2008
Amendment of 50. Section 164 of the principal enactment is hereby
section 164 of amended by the substitution for the words “notice of
the principal
assessment to each person who has been assessed,”, of the
enactment.
words “notice of assessment to each person and each
partnership who or which has been assessed,”.
Amendment of 51. Section 208 of the principal enactment as amended
section 208 of by Act, No.10 of 2007, is hereby further amended in
the principal
subsection (4) of that section by the substitution for the
enactment.
words from “or an Assessor of Inland Revenue shall not
exercise” to the end of that subsection, of the following words
and figures:—
“or an Assessor of Inland Revenue shall not—
(a) act under section 163; or
(b) reach any agreement or make any adjustment to any
assessment made under subsection (7) of section
165,
except with the written approval of the Commissioner –
General or any Deputy Commissioner”.
Amendment of 52. Section 217 of the principal enactment as amended
section 217 of by Act, No.10 of 2007, is hereby further amended in the
the principal
definition of the phrase “approved by the Commissioner-
enactment.
General”, for the words “when used in relation to a provident
or pension fund means,”, of the words “when used in relation
to a provident fund, gratuity fund or pension fund means,”.
Amendment of 53. The Third Schedule to the principal enactment is
the Third hereby amended by the substitution for item 7 of that
Schedule to the
Schedule, of the following item:—
principal
enactment.
“7. Any society registered or deemed to
be registered as a registered society under the
Co-operative Societies Law, No. 5 of 1972.
On the taxable income for
any year of assessment
ending on or before
Inland Revenue (Amendment) 39
Act, No. 9 of 2008
March 31, 2008 or
commencing on or after
April 1, 2013 5 per centum.”.
54. The Fifth Schedule to the principal enactment is Amendment of
hereby amended in item 15 of that Schedule, by the the Fifth
Schedule to the
substitution for the words and figures “in accordance with
principal
section 46, and any dividend received from outside Sri Lanka enactment.
and other divdends”, of thewords and figures “in accordance
with section 46and any dividends received prior to April 1,
2008, from outside Sri Lanka, and other dividends”.
55. (1) The amendments made to paragraph (h) of Retrospective
subsection (1) of section 8, subsection (1) of section 23, effect.
“section 26, section 62, section 107 and section 163 of the
principal enactment, by section 3 (1) (d), section 15 (1) (a),
section 19, section 29 and section 35 and section 49
respectively of this Act, shall be deemed for all purposes to
have come into force on April 1, 2006
(2) The amendments made to subsection (3) of section 32
of the principal enactment by the addition of a new paragraph
(e) to that subsection, by section 20 (3) of this Act, shall
be deemed for all purposes to have come into force on
April 1, 2007.
(3) The amendments made to paragraph (b) of subsection
(2) of section 34 of the principal enactment and the insertion
of new Chapter XXA to the principal enactment, by section
21 (1) (a) and section 47 respectively of this Act, shall
be deemed for all purposes to have come into force on
January 1, 2008.
“(4) The amendments made to the principal enactment
by this Act, other than the amendments specifically referred
to in subsections (1), (2) and (3) of this section, shall come
into force on April 1, 2008.”.
56. In the event of any inconsistency between the Sinhala text to
Sinhala and Tamil texts of this Act, the Sinhala text shall prevail in case
of any
prevail. inconsistency.

40 Inland Revenue (Amendment)
Act, No. 9 of 2008
Annual subscription of English Bills and Acts of the Parliament Rs. 885 (Local), Rs. 1,180
(Foreign), Payable to the SUPERINTENDENT, GOVERNMENT PUBLICATIONS BUREAU, DEPARTMENT OF
GOVERNMENT INFORMATION, NO. 163, KIRULAPONA MAWATHA, POLHENGODA, COLOMBO 05 before
15th December each year in respect of the year following.
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