ESTATE DUTY

(1) For the purposes of this Ordinance, there may be appointed3 a Commissioner of Estate Duty, a Deputy Commissioner of Estate Duty, Assistant Commissioners of Estate Duty and Assessors of Estate Duty.

(2) The Commissioner may authorize an Assistant Commissioner, either generally or specially, to exercise or perform all or any of the powers, duties or functions of the Commissioner under this Ordinance.

(3) An Assistant Commissioner exercising or performing any power, duty or function of the Commissioner under this Ordinance shall, until the contrary is proved, be deemed for all purposes to be authorized to exercise or perform such power, duty or function.

(4) Any powers conferred upon an Assessor by this Ordinance may be exercised by the Commissioner or an Assistant Commissioner.

(1) The amount of estate duty payable on the Ceylon estate of any deceased person shall-

Provided that where, by reason of the fact that the value of the total estate exceeds the greater of the two limits of any class specified in the Schedule, estate duty is payable at the higher rate prescribed for the next succeeding class in that Schedule, the amount of estate duty payable shall not exceed the aggregate of-

(2) For the purpose of determining the value of the Ceylon estate or the total estate of any deceased person, all property forming part of the Ceylon estate or the total estate, as the case may be, shall be aggregated so as to form one estate : Provided, however, that-

(3) Property passing on any death shall not be aggregated more than once, nor shall estate duty in respect thereof be more than once levied on the same death.

(4) The rate of estate duty to be paid on any property forming part of the Ceylon estate of any deceased person shall be the rate determined under subsection (1) in respect of that estate.

(a) Property of which the deceased was at the time of his death competent to dispose ;

(b) Property in which the deceased or any other person had an interest ceasing on the death of the deceased, to the extent to which a benefit accrues or arises by the cesser of such interest; inclusive of property the estate or interest in which has been surrendered, assured, divested, or otherwise disposed of, whether for value or not, to or for the benefit of any person entitled to an estate or interest in remainder or reversion in such property, unless that surrender, assurance, divesting, or disposition was bona fide made or effected three years before the death of the deceased where the date of his death is prior to the appointed date or five years before his death where the date of his death is the appointed date or any subsequent date, and bona fide possession and enjoyment of the property was assumed thereunder immediately upon the surrender, assurance, divesting, or disposition, and thenceforward retained to the entire exclusion of the person who had the estate or interest limited to cease as aforesaid, and of any benefit to him by contract or otherwise ; but exclusive of property the interest in which of the deceased or other person was only an interest as holder of an office, or recipient of the benefits of a charity, or as a corporation sole ;

(c) Property which was subject to an annuity or other periodical payment limited to cease on the death of the deceased to the extent of the benefit which would accrue from the cesser of that annuity or other payment notwithstanding that the annuity or other payment has been surrendered, assured, divested or otherwise disposed of during the lifetime of the deceased, whether for value or not, to or for the benefit of the person entitled to the property, unless the surrender, assurance, divesting or disposition was bona fide made or effected three years before the death of the deceased where the date of his death is prior to the appointed date or five years before his death where the date of his death is the appointed date or any subsequent date, and the person entitled to the annuity or other payment was not at any time within that period in receipt of any substituted annuity or other periodical payment limited to cease on his death, being an annuity or payment which was secured, whether by contract or otherwise, to him in return for the surrender, assurance, divesting or disposition ;

(d) Property taken as a donatio mortis causa made by the deceased or taken under a disposition made by him purporting to operate as an immediate gift inter vivos, whether by way of transfer, delivery, declaration of trust, or otherwise, which shall not have been bona fide made three years before his death where the date of his death is prior to the appointed date or five years before his death where the date of his death is the appointed date or any subsequent date, or taken under any gift, whenever made, of which bona fide possession and enjoyment shall not have been assumed by the donee immediately upon the gift and thenceforward retained to the entire exclusion of the donor or of any benefit to him by contract or otherwise:

Provided that-

(e) Property which the deceased, having been absolutely entitled thereto, has caused to be transferred to or vested in himself and any other person jointly, whether by disposition or otherwise, (including also any purchase or investment effected by the deceased alone, or in concert or by arrangement with any other person), so that the beneficial interest therein or in some part thereof passes or accrues by survivorship on his death to such other person ;

(f) Property passing under any past or future settlements made by the deceased by any instrument not taking effect as a will whereby an interest in such property or the proceeds of sale thereof for life or any other period determinable by reference to death is reserved, either expressly or by implication, to the settlor, or whereby the settlor may have reserved to himself the right, by the exercise of any power, to restore to himself or to reclaim the absolute interest in such property or the proceeds of sale thereof : Provided that in this paragraph the expression ” settlement” shall include any trust, whether expressed in writing or not, in favour of any person, and if contained in an instrument effecting the settlement, whether the instrument was made for valuable consideration or not as between the settlor and any other person ;

(g) Money received under a policy of insurance effected by the deceased on his life where the policy is wholly kept up by him for the benefit of a donee, whether nominee or assignee, or a part of such money in proportion to the premium paid by him, where the policy is partially kept up by the deceased for such benefit;

(h) Any annuity or other interest purchased or provided by the deceased, either by himself alone or in concert or by arrangement with any other person, to the extent of the beneficial interest accruing or arising by survivorship or otherwise on the death of the deceased.

(a) for the purposes of section 5, means the 1st day of April, 1955, and

(b) for the purposes of sections 6 and 7, means the 1st day of April, 1947.

(1) Where by a disposition of any property an interest is conferred on any person other than the disponer for the life of such person or determinable on his death, and such person enters into possession of the interest and thenceforward retains possession thereof to the entire exclusion of the disponer or of any benefit to him by contract or otherwise, and the only benefit which the disponer retains in the said, property is subject to such life or determinable interest, and no other interest is created by the said disposition, then, on the death of such person, the property shall not be deemed to pass by reason only of its reverter to the disponer in his lifetime.

(2) Where by a disposition of any property any such interest as above in this section mentioned is conferred on two or more persons, either severally or jointly or in succession, this section shall apply in like manner as where the interest is conferred on one person.

(3) The foregoing subsections shall not apply where such person or persons taking the said life or determinable interest had at any time prior to the disposition been himself or themselves competent to dispose of the said property.

(1) Estate duty shall not be payable in respect of property passing on the death of the deceased by reason only of a bona fide purchase from the person under whose disposition the property passes, nor in respect of the falling into possession of the reversion on any lease for lives, nor in respect of the determination of any annuity for lives, where such purchase was made, or such lease or annuity granted, for full consideration in money or money’s worth paid to the vendor or grantor for his own use or benefit, or in the case of a lease, for the use or benefit of any person for whom the grantor was a trustee.

(2) Where any such purchase was made, or lease or annuity granted, for partial consideration in money or money’s worth paid to the vendor or grantor for his own use or benefit, or in the case of a lease, for the use or benefit of any person for whom the grantor was a trustee, the value of the consideration shall be allowed as a deduction from the value of the property for the purpose of estate duty.

(1) Where the Commissioner is satisfied that in any part of the Commonwealth estate duty is payable by reason of a death in respect of any property situate in that part of the Commonwealth and passing on such death, he shall allow a sum equal to the amount of that duty to be deducted from the estate duty payable in Ceylon in respect of that property on the same death.

(2) For the purposes of this section and of section 20 of the Finance Act, 1894, of the Parliament of the United Kingdom, the local situation of any property shall be determined in accordance with the law in force for the time being, in Great Britain or Northern Ireland, as the case may require.

(a) where the second death occurs within one year of the first death, by fifty per centum;

(b) where the second death occurs within two years of the first death, by forty per centum;

(c) where the second death occurs within three years of the first death, by thirty per centum ;

(d) where the second death occurs within four years of the first death, by twenty per centum;

(e) where the second death occurs within five years of the first death, by ten per centum:

(a) the amount of settlement estate duty which has been paid in respect of that property ; and

(b) simple interest on the said amount of settlement estate duty calculated at the rate of four per centum per annum from the date of the payment of the said duty up to the date of the death by reason of which estate duty became so payable:

(1) Subject to the provisions of subsection (2), the value of any property shall be estimated to be the price which, in the opinion of an Assessor, such property would fetch if sold in the open market at the time of the death of the deceased ; and no reduction shall be made in the estimate on account of the estimate being made on the assumption that the whole property is to be placed on the market at one and the same time :

Provided that where it is proved to the satisfaction of an Assessor that the value of the property has been depreciated by reason of the death of the deceased, the Assessor, in fixing the price, shall take such depreciation into account.

(2) Where income in respect of any property has accrued due but has not been received by the deceased prior to his death, the value of that property for the purposes of this Ordinance shall be the aggregate of the price estimated under subsection (1) and the amount of such income.

(3) Where the property to be valued is land situated outside the administrative limits of a local authority other than a Village Committee, the value of the land for the purposes of this Ordinance shall be the value thereof as estimated under subsection (1) reduced by an amount equivalent to ten per centum, of that value : Provided that no such reduction shall be made from the value of-

(4) Where the property to be valued is an undivided snare in any land in respect of which a reduction is authorized under subsection (3), the value of that undivided ?hare shall be the proportionate amount of the value of the whole land as determined under that subsection further reduced by an amount equivalent to ten per centum of such proportionate amount.

(5) Where the property to be valued is an undivided share in any land other than a land in respect of which a reduction is authorized under subsection (3), the value of that undivided share shall be the proportionate amount of the value of the whole land as estimated under subsection (1) reduced by an amount equivalent to ten per centum of such proportionate amount.

(6)

(a) if the interest extended to the whole income of the property, be the value of that property; and

(b) if the interest extended to less than the whole income of the property, be such proportion of the value of the property as corresponds to the proportion of the income which passes on the cesser of the interest.

(1) In determining the value of the Ceylon estate of a deceased person, allowance shall be made, subject as hereinafter provided, for reasonable funeral expenses and for debts and incumbrances incurred or created by the deceased, or which, having been charged upon any property forming part of the Ceylon estate prior to its acquisition by the deceased, whether by way of inheritance, gift, transfer, purchase or otherwise, continued to be so charged at the date of death, but an allowance shall not be made-

and any debt or incumbrance for which an allowance is made shall be deducted from the value of the property liable thereto :

Provided that no allowance shall be made for funeral expenses incurred outside Ceylon or for debts due from the deceased to non-resident persons (unless contracted to be paid in Ceylon or charged on property situate in Ceylon), except out of property situate out of Ceylon upon the value of which estate duty is payable ;

Provided, further, that if it is proved to the satisfaction of an Assessor that the amount of the said funeral expenses and debts exceeds the value of the property of the deceased situate out of Ceylon, such excess may be deducted from the value of the Ceylon estate.

(2) In determining the value of the Ceylon estate of a deceased person, allowance shall also be made-

Where any allowance is to be made for any tax referred to in the foregoing paragraph (b), an amount computed in such manner as the Commissioner may in his discretion determine shall be deemed for the purposes of this subsection to be the amount of such tax.

(1) Subject to the provisions of subsection (2) –

(2) Subject as hereinafter provided, the first charge referred to in subsection (1) shall rank in priority over all alienations, leases and incumbrances effected or created before or after the death : Provided that-

(3) Nothing in this Ordinance shall be deemed to create a charge for estate duty on any property situate outside Ceylon.

(1) A person authorized or required to pay the estate duty in respect of any property shall, for the purpose of paying the duty, or raising the amount of the duty when already paid, have power, whether the property is or is not vested in him, to raise with the consent of the appropriate District Court the amount of such duty and any interest and expenses properly incurred or paid by him in respect thereof, by the sale or mortgage of, or a terminable charge on, that property or any part thereof.

(2) A person having a limited interest in any property, and a lessee or mortgagee of any property, who pays the estate duty in respect of that property, shall be entitled to the like charge as if the estate duty in respect of that property had been raised by means of a mortgage to him.

(1) The executor of every deceased person shall, within six months after the date of the death of the deceased, deliver to the Commissioner in the prescribed form a declaration of property containing a full and true statement of particulars relating to the total estate of the deceased including the value thereof ; and together with such declaration of property he shall deliver to the Commissioner a certified copy of the will, if any, of the deceased.

(2) Where the executor is not liable to pay estate duty in respect of any property passing on the death of a deceased person, the person liable to pay such duty shall, within six months after the date of the death of the deceased, deliver to the Commissioner in the prescribed form a declaration of property containing a full and true statement of particulars relating to such property including the value thereof.

(3) An Assessor may, in his discretion, extend the period herein before prescribed for delivering any declaration of property.

(a) property liable to estate duty has been omitted therefrom ; or

(b) property liable to estate duty has been undervalued therein ; or

(c) a deduction has been claimed which is not authorized under this Ordinance, he shall forthwith deliver to the Commissioner a further declaration setting out particulars of such error.

(1) An Assessor may give notice in writing to any person who, in his opinion, is able to give information regarding the affairs of any deceased person or persons requiring him within the time limited by such notice to furnish such particulars as the Assessor may deem necessary.

(2) An Assessor may give notice in writing to any person who is required by this Ordinance to make a declaration of property or to whom a notice has been addressed under subsection (1) calling upon such person within the time limited by such notice to produce at the time and place fixed by the Assessor any deeds, plans, instruments, books, accounts or documents which the Assessor may deem necessary.

(1) Where it appears to an Assessor that the amount which any person is liable to pay as estate duty has been assessed at less than the proper amount, the Assessor may at any time within three years of the date of the notice of the original assessment make an additional assessment of the amount which such person is, in his opinion, liable to pay :

Provided that-

(2) Where an additional assessment of estate duty has been made under subsection (1), an executor shall not, except in the case of fraud, be personally liable for any estate duty under any such additional assessment by reason of having administered or distributed the estate of the deceased without retaining assets to satisfy the duty.

(1) Any such person who desires to appeal (hereinafter referred to as the appellant) shall, within thirty days after the date of the notice of such assessment, deliver to the Commissioner a written notice of objection which shall set out specifically the several grounds upon which it is contended that the assessment is erroneous or that he is not liable to pay the estate duty claimed ; and if he contends that the value put upon any property in the notice of assessment is excessive, he shall identify the property in his notice of objection and state the value which he contends should be put upon that property.

(2) A notice of objection may be signed by the authorized representative of the appellant.

(1) The Commissioner shall, as soon as may be after the delivery to him of a valid notice of objection, notify to the appellant whether the Commissioner has withdrawn the claim for estate duty or whether he has determined to maintain the assessment either in whole or in part.

(2) Before making any determination upon any notice of objection-

(1) At any time within thirty days after the date of the notification by the Commissioner of his determination, the appellant may proceed with his appeal by filing a petition of appeal in the appropriate District Court, naming the Attorney-General as respondent to his petition. A copy of such petition shall be served on the Attorney-General through the court.

(2) Where the appellant having filed a petition of appeal fails to serve a copy thereof on the Attorney-General within thirty days of the date on which such petition was filed, the Commissioner may proceed under this Ordinance as though no such petition had been filed.

(1) Save with the consent of the court and on such terms as the court may determine, the appellant shall not in his petition state, or at the hearing be allowed to rely upon, any ground of appeal not specifically set out in the notice of objection.

(2) Save with the consent of the court and subject to such terms as the court may determine, the appellant shall not be allowed at the hearing of his appeal-

(1) Estate duty shall be paid in the manner directed in a notice of assessment on or before the date specified in such notice.

(2) Estate duty shall be paid notwithstanding any appeal or notice of objection unless the Commissioner orders that payment of the duty or any part thereof be held over to a date specified in such order.

(3) Any estate duty not paid on or before the date specified in the notice of assessment or in any order made under subsection (2) shall be deemed to be in default unless the Commissioner has agreed to accept payment of estate duty by instalments.

(1) Any person liable to pay estate duty under this Ordinance may apply to the Commissioner before the date fixed for the payment thereof that immovable property passing on the death of the deceased equivalent in value to the amount of such duty may be transferred to Her Majesty in lieu of payment of such duty in cash.

(2) No such application shall be granted or refused by the Commissioner except with the approval of the Minister of Finance.

(3) The value of any immovable property transferred in payment of duty under this section shall be the value of that property as determined for the purposes of this Ordinance.

(4) All fees, charges and expenses incidental to or connected with the transfer to Her Majesty of any immovable property in payment of estate duty, the examination of title to, and the execution of the deed of transfer of, such property, shall be borne by the applicant.

(1) Government stock may be surrendered to the Secretary to the Treasury1 in accordance with the next following provisions of this section in lieu of the payment of the whole or any part of any estate duty in cash.

(2) No stock shall be accepted for the purposes of this section unless-

(3) Where the stock surrendered is fully paid stock, issued and redeemable at par, the surrender of such stock shall be deemed to be equivalent to the payment in cash of an amount equal to the aggregate of-

(4) Where the stock surrendered is not fully paid or has been issued below par or is redeemable at an amount above or below par, the surrender of such stock shall be deemed to be equivalent to the payment in cash of an amount equal to the aggregate of –

In this subsection, ” prescribed proportion”, in relation to any stock, means such proportion as may be prescribed by the Minister of Finance [1] by regulation made under section 79, being a proportion which is not less than the sum originally subscribed for the stock or the sum payable for the redemption of the stock, whichever of these is the less.

(5) Where the surrender of stock by any person under this section is deemed under subsection (3) or subsection (4) to be equivalent to the payment in cash of an amount which exceeds the estate duty payable by him, the excess shall be disposed of in the following manner : –

(1) If the Commissioner is satisfied that the Ceylon estate of a deceased person consists wholly or mainly of immovable property and that the movable property of the Ceylon estate available for payment of estate duty is insufficient for such payment, the Commissioner may, subject to such terms, conditions and procedure as may be prescribed by regulations made under section 79, accept payment of estate duty in not more than sixteen equal half-yearly instalments the first of such instalments falling due for payment on a date six months from the date of the death of the deceased.

(2) No person shall be permitted to pay estate duty by instalments until he has furnished security for such payment to the satisfaction of the Commissioner.

(3) Where a person is permitted to pay estate duty by instalments and fails to pay any such instalment within twenty-eight days after the date on which it falls due, the remaining instalments shall be deemed to be in default and the total amount of estate duty remaining unpaid may be recovered in the manner provided in this Ordinance for the recovery of estate duty in default.

(1) When any executor shall have paid or secured to the satisfaction of the Commissioner the payment of all estate duty for which he is liable, the Commissioner shall issue a certificate to that effect to which shall be attached a copy of the declaration of property in respect of which estate duty has been paid or secured.

(2) Where the Commissioner is satisfied that any executor is not liable to pay estate duty under this Ordinance, the Commissioner shall issue a certificate to that effect to which shall be attached a copy of the declaration of property in respect of which estate duty is not payable.

(1) The Commissioner on being satisfied that the full estate duty has been or will be paid in respect of all property passing on the death of a deceased person for which the executor is liable to pay estate duty under this Ordinance shall, if required by the executor, give a certificate to that effect, which shall discharge from any further claim for estate duty the property mentioned in that certificate.

(2) Where a person other than the executor is liable to pay estate duty in respect of any property passing on a death, such person may, if the executor has not delivered under section 30 a declaration which includes a reference to that property, furnish to the Commissioner a full statement to the best of his knowledge and belief of all property passing on such death and the several persons entitled thereto ; and the Commissioner may determine the rate of the estate duty in respect of the property for which the applicant is liable, and on payment of the duty at that rate, that property and the applicant, so far as regards that property, shall be discharged from any further claim for estate duty, and the Commissioner shall give a certificate of such discharge.

(3) On the application of the executor or of any person having an interest in any property passing on the death of a deceased person, the Commissioner may, if he thinks fit, determine the estate duty payable in respect of that property, and, on due payment of such estate duty, may issue a certificate which shall discharge from any further claim for estate duty the property mentioned in that certificate.

(4) A certificate of the Commissioner under this section shall not discharge any person or property from estate duty in case of fraud or failure to disclose material facts, and shall not affect the rate of duty payable in respect of any property afterwards shown to have passed on the death, and the duty on such property shall be at such rate as would be payable if the value thereof were added to the value of the property in respect of which duty has been already accounted for :

Provided that a certificate purporting to be a discharge of the whole estate duty payable in respect of any property included in the certificate shall exonerate from the estate duty a bona fide purchaser for valuable consideration without notice, notwithstanding any such fraud or failure.

(a) the Commissioner has issued the certificate that the estate duty for the payment of which the executor is liable under this Ordinance has been paid or secured, or that the executor is not liable to pay estate duty under this Ordinance ; and

(b) the certificate so issued has been filed in court.

(1) “Where any person proves to the satisfaction of the Commissioner that he would, on payment of estate duty, be entitled to probate or letters of administration, and requests the Commissioner to collect a sum on account of the estate duty to be paid by such person out of any money or debts forming part of the estate of the deceased, the Commissioner may, if he thinks fit, by notice in writing, require any person or persons who hold such money or owe such debts to pay in the manner and within the period stated in such notice so much of such money or debts as the Commissioner may deem sufficient to cover the estate duty payable in respect of the property of the deceased.

(2) Any person to whom a notice is sent by the Commissioner in accordance with subsection (1), shall, notwithstanding anything contained in any written law, contract or agreement, comply with such notice to the extent of the money held by him on account of the estate of the deceased, or owed by him to such estate, and is hereby indemnified in respect of any payment made thereunder against all proceedings, civil or criminal.

(3) Nothing in subsection (1) or in subsection (2) shall enable or be deemed to enable the Commissioner to collect or recover from any person any debt at any time before the date on which that debt is due to be paid by that person to the estate of the deceased.

(4) Where any sum required to be paid by a notice given under subsection (1) is not paid in accordance with such notice, it shall be recoverable from the person to whom the notice was directed as if such sum were estate duty due from such person and as if such estate duty were in default.

(1) Where any estate duty is in default the Commissioner may issue to the appropriate District Court a certificate, in this Ordinance referred to as a collection certificate, containing particulars of such duty, the name and address of the person by whom it is payable, and a schedule of property by the sale of which the duty may be recovered. The District Court shall thereupon issue a writ to the Fiscal or Deputy Fiscal requiring him to seize and sell the said property or such part thereof as he may deem necessary, and the provisions of sections 226 to 297 of the Civil Procedure Code, shall, mutatis mutandis, apply to such seizure and sale.

(2) The provisions of this section shall have no application in a case in which a decree for the payment of estate duty has been entered by a District Court on an appeal preferred to that court under this Ordinance.

(1) Where estate duty payable on the death of a deceased person is in default, and it appears to the Commissioner to be probable that any person-

the Commissioner may give to such person notice in writing requiring him to pay as directed in such notice any such money not exceeding the amount of the estate duty in default. The notice shall apply to such money as is in the hands of the person noticed or is due from him or is about to be paid by him at the date of the receipt of such notice, or comes into his hands or becomes due from him or is about to be paid by him at any time within a period of thirty days after that date.

(2) Any estate duty paid in accordance with this section shall be deemed to have been paid on behalf of another person within the meaning of section 72.

(3) Any person to whom a notice has been given under subsection (1) who is unable to comply therewith owing to the fact that the money in question does not come into his hands or does not become due from him within the period of thirty days referred to in that subsection shall, at least fourteen days after the expiration of that period, inform the Commissioner in writing of the facts by reason of which he is unable to comply with such notice.

(4) Where any person to whom a notice has been given under subsection (1) is unable to comply therewith and has failed to inform the Commissioner as required in subsection (3), or where he has deducted or could have deducted the estate duty to which the notice relates or any part thereof and has not paid over as directed by the Commissioner the amount of such estate duty or part thereof within fourteen days after the expiration of the period of thirty days referred to in subsection (1), he shall be personally liable for the whole of the estate duty which he has been required to deduct, and the amount of such duty may be recovered from him as a debt due to the Crown.

(1) Where a deceased person was at the time of his death a partner in a partnership carrying on business in Ceylon, and any estate duty payable in respect of the property passing on the death of such deceased person is in default, the Commissioner may give notice in writing to any person who was at the time of the death a partner in such partnership requiring him to pay as directed in such notice the amount of the estate duty in default or the amount of the deceased person’s interest in such partnership, whichever is the less.

(2) Any estate duty paid in accordance with this section shall be deemed to have been paid on behalf of another person within the meaning of section 72.

(3) Where any person fails to comply with a notice given under subsection (1), the amount of the estate duty which is in default, or the amount of the deceased person’s interest in the partnership at the time of death, whichever is the less, shall be recoverable from him as if it were estate duty due from him and as if such estate duty were in default.

(1) where by reason of any proceeding at law, any debt due from the deceased which might be allowed as a deduction has not been ascertained, and in consequence thereof the executor was prevented from claiming refund of estate duty as aforesaid within the said term of three years, it shall be lawful for the Commissioner to allow such further time for making a claim as may appear to him to be reasonable ;

(2) nothing in this section shall confer or be deemed to confer on any person-

(a) omits or understates the value of any property which is or should be included in a declaration of property or in any other statement whatsoever required to be delivered or furnished under this Ordinance ; or

(b) makes any incorrect statement in connexion with a claim to an allowance under section 23; or

(c) gives an incorrect information in relation to any matter or thing affecting the liability of himself or any other person to pay estate duty,

(a) omits from a declaration of property any property which should be included in that declaration ;

(b) makes any incorrect statement in connexion with the claim to an allowance under section 23 ;

(c) signs any declaration, statement or return furnished under this Ordinance without reasonable grounds for believing the same to be true ;

(d) gives any false answer whether verbally or in writing to any question or request for information asked or made in accordance with the provisions of this Ordinance ;

(e) prepares or maintains or authorizes the preparation or maintenance of any false book of account or other document ;

(f) makes use of or authorizes the use of any-fraudulent device, art, or contrivance,

(1) Where the Commissioner is of opinion that any public officer is in a position to supply any information which the Commissioner may require for the purposes of this Ordinance, he may by written application request such public officer to furnish such information ; and every such public officer shall supply the information required to the best of his knowledge and belief.

(2) Every public officer having in his custody any registers, books, records, papers, documents or proceedings the inspection whereof may tend to secure any duty under this Ordinance or to prove or lead to the discovery of any fraud or omission in relation to any such duty, shall at all reasonable times permit any person authorized in writing by the Commissioner to inspect for such purpose such registers, books, records, papers, documents and proceedings, and to take such notes and extracts as he may deem necessary without fee or charge.

(3) In this section, “public officer” includes any officer in the employ of a local authority.

(1) Any act or thing required by or under this Ordinance to be done by any person shall, if such person is an incapacitated or non-resident person, be deemed to be required to be done by the trustee of such incapacitated person or by the agent of such non-resident person, as the case may be.

(2) Where a non-resident person dies, any person who was the agent of such non-resident person at the time of death shall, to the best of his knowledge and belief, furnish to the Commissioner all such information and particulars as the Commissioner may from time to time require for the purpose of the levy of estate duty under this Ordinance.

(1) Every person liable to pay estate duty as trustee, or from whom estate duty is recoverable or has been recovered on behalf of another person, may retair. out of any assets coming into his possession or control, either on behalf of such other person or in his capacity as trustee, so much thereof as shall be sufficient to produce the amount of such duty, and he shall be and is hereby indemnified against any person whomsoever in respect of his retention of such assets.

(2) Where any person acting as trustee has paid estate duty, and no assets of the trust come into his possession or control out of which he could retain the duty so paid, such duty shall be a debt due from the beneficiaries of the trust to the trustee.

(3) Where estate duty has been paid by or recovered from any person liable to pay estate duty on behalf of another person, and no assets of such other person come into his possession or control out of which he could retain the duty so paid, such duty shall be a debt due to him from such other person.

(1) Every notice given by the Commissioner, an Assistant Commissioner, or an Assessor under this Ordinance shall bear the name of the Commissioner- Assistant Commissioner, or Assessor, as the case may be, and every such notice shall, if the name of the Commissioner, Assistant Commissioner, or Assessor is duly printed or stamped thereon, be as valid and effectual as if that notice is signed by such Commissioner, Assistant Commissioner, or Assessor, as the case may be

(2) Every notice given by virtue of this Ordinance may be served on a person either personally or by being delivered at, or sent by post to, an address furnished by him for the purpose of service of notices or his last known address or place of abode or to any place at which he is or has been carrying on business : Provided that a notice of assessment shall be served personally or by being sent by registered post to any such address or place as aforesaid,

(3) Any notice sent by post shall be deemed to have been served on the day succeeding the day on which it would have been received in the ordinary course by post.

(4) In proving service by post it shall be sufficient to prove that the letter containing the notice was duly addressed and posted.

(5) Every notice required by or under this Ordinance to be served on a non-resident person may be served on his agent.

(6) Where any notice or certificate bears the name and official designation of any person and purports to have been issued by him under this Ordinance, it shall be presumed, until the contrary is proved, that on the date of the issue of that notice or certificate a person bearing that name was entitled to that official designation ; and the name and office of that person shall be judicially noticed.

(a) on any movable property which is proved to the satisfaction of the Commissioner to have been the joint property of that family ; or

(b) on any immovable property, where it is proved to the satisfaction of the Commissioner that such property, if it had been movable property, would have been the joint property of that family.

(1) The Minister [1] may make regulations for the purpose of carrying out or giving effect to the objects and purposes of this Ordinance.

(2) Such regulations may prescribe penalties for any contravention thereof or failure to comply therewith not exceeding in each case a sum of five hundred rupees ; and any person who contravenes or fails to comply with any regulation for the contravention of or failure to comply with which a penalty is so prescribed shall be guilty of an offence which may be summarily tried by a Magistrate.

(3) No regulation shall have effect until it has been approved by the Senate and the House of Representatives. ‘ Notification of such approval shall be published in the Gazette.

(4) Every regulation when approved by the Senate and the House of Representatives1 shall, upon publication in the Gazette, be as valid and effectual as if it were herein enacted.

(1) In this Ordinance, unless the context otherwise requires-

” agent”, when used with reference to a non-resident person, includes-

” appropriate District Court” means the District Court of Colombo and includes any other District Court having jurisdiction to administer the estate of the deceased or any other District Court by which probate or letters of administration granted outside Ceylon have been resealed under the British Courts Probates (Resealing) Ordinance ;

” Assessor” means an Assessor of Estate Duty appointed under section 2 ;

“Assistant Commissioner” means an Assistant Commissioner of Estate Duty appointed under section 2 ;

” authorized representative”, when used with reference to a person who is liable to pay estate duty, means an advocate or a proctor ;

“body of persons” includes any local or public authority, any body corporate or collegiate, and any fraternity, fellowship, association, or society of persons, whether corporate or unincorporate ;

” Commonwealth” means Great Britain and Northern Ireland and any other part of Her Majesty’s Realms and Territories and includes any British protectorate or protected state and any territory in respect of which a mandate on behalf of the League of Nations has been accepted by Her Majesty ;

” Ceylon estate ” means-

” Commissioner ” means the Commissioner of Estate Duty appointed under section 2 and includes the Deputy Commissioner, and an Assistant Commissioner specially authorized by the Commissioner either generally or for some specific purpose to act on behalf of the Commissioner ;

“company” means any company incorporated or registered under any law in force in Ceylon or elsewhere ;

” deceased ” or ” deceased person ” means any person dying on or after the 1st day of April, 1937 ;

” declaration of property ” means a declaration furnished under this Ordinance by an executor or other person liable to pay estate duty for the purpose of the assessment of such duty ;

” estate duty ” or ” duty ” means the duty imposed under this Ordinance ; ” executor ” means the executor or administrator of a deceased person, and includes, as regards any obligation under this Ordinance, any person who takes possession of, or intermeddles with, the property of a deceased person, and any person who has applied or is entitled to apply to a District Court for the grant or resealing of probate or letters of administration in respect of the estate of a deceased person ;

” incapacitated person ” means any minor, idiot or person of unsound mind ;

” incumbrances ” includes mortgages, hypothecations, and terminable charges ;

” local authority ” means a Municipality, an Urban Council, a Town Council and a Village Committee ;

” non-resident ” means not resident in Ceylon ;

” person”, except when used with reference to a deceased person, includes a company or body of persons ;

” property ” includes movable and immovable property of every kind, and the proceeds of sale thereof respectively, and any money or investment or other asset for the time being representing the proceeds of sale ;

” property passing on the death ” includes property deemed to pass on the death and property passing either immediately on the death or after any interval, either certainly or contingently, and either originally or by way of substitutive limitation; and the expression ” on the death ” includes ” at a time ascertainable only by reference to the death ” ;

” settled” when applied to property means any property subject to a settlement;

” settlement” means any deed, will, agreement for a settlement, or other instrument or any number of instruments, or any parol trust, under or by virtue of which any property or any interest therein stands for the time being limited to or in trust for any person or persons by way of succession, and includes any interest in remainder or reversion not disposed of by the settlement and reverting to the settlor or descending to the testator’s heir or next of kin ;

” total estate” means in every case all property settled or not settled wherever situate which passes on the death ;

” trustee”, when used with reference to an incapacitated person, includes any guardian, curator, manager or other person having the direction, control, or management of any property on behalf of such incapacitated person,

(2) For the purposes of this Ordinance-

(1) Any estate duty payable in respect of property passing on the death of any person who died at any time between the 1st day of July, 1919, and the 1st day of October, 1935, shall so far as that duty is unpaid on the date of the commencement of this Ordinance be assessed, paid, collected or refunded in accordance with the provisions of this Ordinance ; and such provisions, so far as they are not inconsistent with the provisions of sections 1 to 17 of the Estate Duty Ordinance, No. 8 of 1919,* and the rules and forms prescribed thereunder, shall have application accordingly :

Provided that any matter or proceeding relating to the payment, levy, collection or refund of any estate duty accrued due prior to the 1st day of April, 1937, and pending in any court on the date of the commencement of this Ordinance may be continued and completed as if this Ordinance had not been enacted.

(2) Regulations may be made under section 79 for the purpose of giving effect generally to the provisions of subsection (1) ; but if any difficulty not provided for in such regulations arises in any particular case in regard to the application of the provisions of subsection (1), the Minister’ may make such order as the circumstances may require in order to remove such difficulty ; and such order shall have the force of law.