Finance – 1963

(1) A Board to be called the National Lotteries Board, hereinafter in this Part of this Act referred to as ” the Board “, shall be established for the purposes of this Part of this Act.

(2) The Board shall be a body corporate with perpetual succession and a common seal and may by its name sue and be sued.

(1) The Board shall consist of not more than five members appointed by the Minister.

(2) The Minister shall appoint one of the members of the Board to be the Chairman of the Board.

(3) The Minister may, if he thinks it expedient to do so, remove, by Order published in the Gazette, any member of the Board from office without reason stated.

(4) A member of the Board in respect of whom an Order under subsection (3) of this section is made by the Minister shall vacate his office on the date of the publication of such Order in the Gazette.

(5) A member of the Board may at any time resign his office by letter addressed to the Minister.

(6) If the Chairman or any other member of the Board is temporarily unable to discharge the duties of his office on account of ill health or absence from Ceylon or any other cause, the Minister may appoint some other person to act in his place as the Chairman, or as a member, of the Board, as the case may be.

(7) Every member of the Board shall, unless he earlier vacates office by resignation or removal, hold office for a period of five years. Any member of the Board who vacates office by effluxion of time shall be eligible for reappointment.

(8) No act or proceeding of the Board shall be invalid by reason only of the existence of any vacancy among its members or any defect in the appointment of any of its members.

(1) The staff necessary for the discharge of the Board’s duties under this Part of this Act shall be determined by the Board, and every appointment to such staff shall be made by the Board.

(2) The officers and servants of the Board shall be remunerated in such manner and at such rates, and shall be subject to such conditions of service as may be determined by rules made under this Part of this Act. Such remuneration shall be paid out of the Fund of the Board.

(3) The Board may, in accordance with rules made under this Part of this Act, establish and maintain a provident fund for the benefit of its officers and servants, make contributions out of its Fund to such provident fund, regulate the management and investment thereof, and fix the contributions to be made thereto by, and the payments to be made therefrom to, or in respect of, such officers and servants.

(1) The Board may acquire, hold and dispose of any movable and immovable property, and enter into contracts and otherwise do all such acts as may be necessary for the purpose of carrying out the provisions of this Part of this Act.

(2) All sums payable by the Board under any contract entered into by the Board or in respect of any movable or immovable property acquired or held by the Board shall be paid out of the Fund of the Board. All sums received by the Board under any such contract or in respect of any such property shall be paid to the Fund of the Board.

(3) All sums payable by the Board for the purpose of defraying any expenditure incurred in the management of the affairs or the transaction of the business of the Board, or the exercise of the powers or the performance of the duties of the Board under this Part of this Act, shall be paid out of the Fund of the Board.

(1) The Board shall have its own Fund.

(2) There shall be paid to the Fund of the Board all sums required by this Part of this Act to be so paid.

(3) There shall be paid out of the Fund of the Board all sums required by this Part of this Act to be so paid.

(4) All cheques for the payment of moneys out of the Fund of the Board shall be signed by a member of the Board and by any such officer employed by the Board as may be authorized in that behalf by the Board.

(1) The Minister may grant out of the Consolidated Fund to the Board, free of interest, a loan not exceeding rupees one million for the purpose of enabling the Board to meet the initial expenses incurred by the Board in the discharge of its duties under this Part of this Act.

(2) Any sum granted to the Board by way of loan under subsection (1) of this section-

(a) the custody and use of its seal;

(b) the appointment, promotion, dismissal and disciplinary control of its officers and servants;

(c) the meetings of the Board and the quorum for, and the procedure to be followed at, such meetings; and

(d) the establishment and maintenance of a provident fund for its officers and servants, and the payment of contributions to that fund by the Board and such officers and servants.

(1) No suit or prosecution shall lie-

(2) Any expense incurred by the Board in any suit or prosecution brought by or against the Board before any court shall be paid out of the Fund of the Board, and any costs paid to, or recovered by, the Board in any such suit shall be credited to such Fund.

(3) Any expense incurred by any such person as is referred to in paragraph (b) of subsection (1) in any suit or prosecution brought against him before any court in respect of any act done or purported to be done by him under this Part of this Act or on the direction of the Board shall, if the court holds that such act was so done or purported to be done in good faith, be paid out of the Fund of the Board, unless that expense is recovered by him in such suit or prosecution.

(1) The Board may conduct lotteries for the purposes of this part of this Act.

(2) The Board may enter into agreements with any other person, for the conduct by such other person, of lotteries for the purposes of this Part of this Act, on behalf of the Board.

(3) The Board may by licence issued in that behalf, authorize the conduct by any other person, of lotteries for the purposes of this Part of this Act,

(4) Every lottery conducted by the Board under subsection (1) or conducted on behalf of the Board under an agreement entered into under subsection (2) or conducted under the authority of a hence issued under subsection (3) is in this Part of this Act referred to as a ‘national lottery”.’.

(1) Every licence issued by the Board conditions under subsection (3) of section 14 shall be subject to such terms and conditions as may be issued determined by the Board and approved by the under Minister.

(2) There shall be paid in respect of every licence issued under subsection (3) of section 14, a fee of such amount as may be prescribed. The fee shall be paid to the Board by the person to whom the licence is issued and shall be credited by the Board to the Consolidated Fund.

(3) It shall be lawful for the Board to cancel a licence issued by it under subsection (3) of section 14, if the holder of the licence fails to comply with, any term or condition to which the licence is subject or any provision of this Act.”.

(1) The number of prizes to be awarded in a national lottery and the value of each such prize shall-

(2) Every prize awarded in a national lottery shall consist of a sum of money and every such prize shall be exempt from the operation of section 3 (1) (i) of the Inland Revenue Act, No. 4 of 1963, and shall not be included in the assessment of profits as income for the payment of tax by such prize winner under the provisions of that Act.

(3) The prize winners in every national lottery shall be determined-

(4) After the expiration of a period of six months reckoned from the date of determination of the winners in a national lottery conducted by the Board, any prize in such national lottery which has not been granted to the person entitled thereto by reason of the fact that such person is not to be found shall be forfeited, and shall, if such prize relates to a national lottery, conducted by the Board otherwise than under an agreement entered into under subsection (2) of section 14, be paid to the Fund of the Board, and if such prize relates to a national lottery conducted by the Board, under an agreement entered into under subsection (2) of section 14, be disposed of in accordance with the terms of such agreement:

Provided however, that where any action or proceeding arising out of any claim made in respect of such prize is pending before any court at the expiration of the period aforesaid, such forfeiture shall not be made, and if in the final determination of that action or proceeding any person is declared to be entitled to such prize, the Board or the person conducting such national lottery on behalf of the Board or the person conducting such national lottery under the authority of a licence issued under subsection (3) of section 14, as the case may be, shall grant such prize to that person, and if no person is so declared, such prize shall he forfeited and shall, if such prize relates to a national lottery conducted by the Board, otherwise than under an agreement entered into under subsection (2) of section 14, be paid to the Hind of the Board, and if such prize relates to a lottery conducted by the Board under an agreement entered into under subsection (2) of section 14, be disposed of in accordance with the terms of such agreement.

(1) The proceeds of every national lottery conducted by the Board shall be paid in the first instance to the Fund of the Board.

(1A) Where the prize consisting of money in a national lottery conducted by the Board, is not won by any person, such prize money shall notwithstanding anything to the contrary in this section, be credited to a Prize Reserve Account and the monies accumulated in such account shall be used for the award of at subsequent national lotteries conducted by the Board.

(2) The Board shall pay to the Consolidated Fund through the Deputy Secretary to the Treasury the balance of the proceeds of every national lottery conducted by the Board, otherwise than under an agreement entered into under subsection (2) of section 14, after deducting therefrom such proceeds of an amount approved by the Secretary to the Ministry of the Minister as the amount necessary for the purpose of-

(3) The Board shall pay to the Consolidated Fund through the Secretary to the Ministry of the Minister, the proceeds of every national lottery conducted on behalf of the Board under an agreement entered into under subsection (2) of section 14, after a deduction from such proceeds, the value of the prizes awarded in such national lottery and of any management fees payable, under the terms of that agreement, to the person conducting such national lottery and of an amount approved by the Secretary as being an amount necessary for the purposes of meeting any payments and liabilities referred to in paragraphs (b), (c), (d) and (e) of subsection (2).

(4) All prizes in a national lottery which have been forfeited and paid to the Fund of the Board, under section 16, shall be credited by the Board to the Consolidated Fund.”.

(1) The Board may make rules in respect of all matters stated or authorized by this Part of this Act to be prescribed, or in respect of which rules are authorized to be so made by this Part of this Act.

(2) Without prejudice to the provisions of subsection (1) of this section, rules made under this section may make provision in respect of all or any of the following matters: –

(3) No rule made by the Board under this section shall have effect until it has been approved by the Minister. Every rule so made and approved, other than any rule relating to any of the matters referred to in section 12, shall be published in the Gazette as soon as it may be convenient.

(1) Every person who-

shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding five hundred rupees or to imprisonment of either description for a term not exceeding six months or to both such fine and imprisonment.

(2) All sums paid or recovered as fines imposed for offences under this section shall be paid to the Fund of the Board.

(a) all the movable and immovable properties of the Hospitals Lotteries Board on the day immediately prior to the appointed date (including moneys in the Fund of that Board) shall be deemed to vest in, and to be the properties of, the National Lotteries Board;

(b) all the contracts of the Hospitals Lotteries Board subsisting on that day shall be deemed to be the contracts of the National Lotteries Board, and all subsisting rights and obligations of the Hospitals Lotteries Board under such contracts shall be deemed to be the rights and obligations of the National Lotteries Board;

(c) the liabilities of the Hospitals Lotteries Board on that day shall be deemed to be the liabilities of the National Lotteries Board;

(d) the Hospitals Fund maintained at the General Treasury under the repealed Hospitals Lotteries Act shall cease to be so maintained, and all sums of money lying to the credit of such Hospitals Fund shall be transferred to the Consolidated Fund by the Deputy Secretary to the Treasury; and

(e) the provident fund established and maintained by the Hospitals Lotteries Board for its officers and servants under the repealed Hospitals Lotteries Act shall be deemed to be a provident fund established and maintained by the National Lotteries Board for its officers and servants under this Part of this Act.

(1) The Pawnbrokers Ordinance is hereby amended as follows: –

(2) Where any person was, on the thirty-first day of December, 1963, carrying on business as a pawnbroker under the authority of a licence issued to him under the Pawnbrokers Ordinance but is prohibited from carrying on such business after that day by virtue of the operation of that Ordinance as amended by subsection (1) of this section, then, notwithstanding anything in that Ordinance as so amended, any right, liability, action, proceeding or thing, acquired or incurred or pending by or against such person on or before that day in his capacity as such pawnbroker may, after that day, be enforced or carried on or completed as though such person was not so prohibited from carrying on such business.

(1) The Money Lending Ordinance is hereby amended as follows: –

(2) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one thousand rupees or to imprisonment of either description for a term not exceeding six months, or to both such fine and imprisonment.

(3) In any prosecution of any person for an offence under this section, the burden of proving that such person is a citizen of Ceylon, or is not a foreign company or foreign firm, shall lie on such person.

(4) In this section,-

(2) Where any person was, on the thirty-first day of December, 1963, carrying on the business of money lending but is prohibited from carrying on such business after that day by virtue of the operation of the Money Lending Ordinance as amended by subsection (1) of this section, then, notwithstanding anything in that Ordinance as so amended, any right, liability, action, proceeding or thing, acquired or incurred or pending by or against such person on or before that day in his capacity as such money lender may, after that day, be enforced or carried on or completed as though such person was not so prohibited from carrying on such business.

(1) The Marriage Registration Ordinance is hereby amended as follows: –

(2) The amendments made in the Marriage Registration Ordinance by subsection (1) of this section shall come into operation on the first day of January, 1964.

(1) The Insurance Corporation Act, No. 2 of 1961, is hereby amended as follows: –

(2) The amendments made in the Insurance Corporation Act, No. 2 of 1961, by subsection (1) of this section shall come into operation on the first day of January, 1964.

(a) in item 1, by the substitution, in paragraph (a) of that item, for the figures ” 1. 0″, of the figures ” 2. 0 “; and

(b) in item 3, by the substitution, for the figures ” 0. 50 “, of the figures ” 1. 0 “.

(1) Section 39 of the Inland Revenue Act, No. 4 of 1963 (hereinafter referred to as the ” principal Act”), is hereby amended by the substitution, for subsection (1) of that section, of the following subsection: –

(2) Section 42 of the principal Act is hereby amended as follows : –

(1) Subject to the provisions of subsection (4), where there is a transfer of ownership of any property in Ceylon to a person who is not a citizen of Ceylon, there shall be charged from the transferee of such property a tax of such amount as is equivalent to the value of that property.

(1A) No transfer of ownership of any property in Sri Lanka, shall be effected to a person who is not a citizen of Sri Lanka, below such value as shall be specified by the Minister of Finance by regulations made in that behalf, with the concurrence of the Minister of Lands and the Chief Valuer, taking into consideration the prevailing value of land in any Administrative District, Divisional Secretary’s Division or Grama Niladhari Division as the case may be .

(2) The tax referred to in subsection (1) is hereinafter referred to as ” the tax “.

(3) A parson liable to the tax shall pay the tax to the Registrar of Lands of the district in which the land transferred is situated before the instrument by which the transfer of that land was effected presented for registration in accordance with the provisions of the Registration of Documents Ordinance,

(3A) Where there is a transfer of ownership of any property within Sri Lanka to a company there shall be charged from the transferee of such property, a tax of such amount as is equivalent to the value of that property, if more than twenty five per centum of the issued shares in such company are owned by persons who are not citizens of Sri Lanka.

(4) The preceding provisions of this section shall not apply to-

(5) The preceding provisions of this section shall be deemed to have come into operation on August 1, 1963.

(1) Where an instrument effecting a transfer of ownership of any land to any person is presented for registration, in accordance with the provisions of the Registration of Documents Ordinance, to the Registrar of Lands, the Registrar shall, subject to the provisions of that Ordinance, register such instrument:

Provided, however, that where such instrument contains a declaration referred to in section 59A the Registrar shall refuse to register such instrument unless and until the tax payable in respect of the transfer effected by such instrument has been paid to him.

Repealed

Repealed.

(1) Where a transfer of ownership of any property to a person who is not a citizen of Ceylon has been effected on any date during the period commencing on the first day of August, 1963, and ending on the date on which this Act becomes an Act of Parliament, and-

before the expiration of such period, then the transferee of such property shall be liable to the tax.

(2) A person who is liable to the tax under subsection (1) shall, upon being requested by notice in writing sent to him by the Registrar of Lands, or the company, as the case may be, by registered letter through the post, pay to such Registrar or company, within the period specified in such notice, the amount of the tax specified in the notice, such amount being an amount equivalent to the value of the property transferred to the person who is not a citizen of Ceylon.

Repealed

(2) Every person who is liable to the tax under sub section (1) of section 61 shall notify in writing, within fifteen days after the date on which this Act becomes an Act of Parliament,-

(3) Any person who fails to comply with the provisions of subsection (2) shall be guilty of an offence under this Part of this Act, and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding one thousand rupees or to imprisonment of either description for a term not exceeding six months or to both such fine and imprisonment.

(4) Any person, being a person who is required by section 59A. to sign a declaration in an instrument effecting a transfer of ownership of any land to such person, who fails, to sign such declaration shall be guilty of an offence under this Part of this Act and shall on conviction after summary trial before a Magistrate be liable to a fine not exceeding one hundred thousand rupees or to imprisonment for a term not exceeding two years or to both such fine and imprisonment and in every case, to an additional penalty equal to twice the value of the land transferred by such instrument.

(5) Where an offence under subsection (4) is committed by a body of persons, then

shall be deemed to be guilty of that offence unless he proves that the offence was committed without his knowledge or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised having regard to the nature of his functions and in all the circumstances.

(a) in the case of a person who is an individual, means an individual who is a citizen of Ceylon under any law for the time being in force relating to such citizenship,

(b) in the case of a person which is a company, means a company to which Part XI of the Companies Ordinance does not apply, and

(c) in the case of a person which is a firm consisting of two partners, means a firm where both partners are citizens of Ceylon, and in the case of a firm consisting of more than two partners, means a firm where the majority of the partners are citizens of Ceylon;

(a) any land covered with water;

(b) any house or building or any part thereof; and

(c) any undivided share of any land;

(a) any land, or

(b) any shares in a company;

(a) upon intestacy;

(b) by gift or testamentary disposition by any individual to his spouse, child, parent, brother or sister, and the issue of such child, brother or sister who is not a citizen of Ceylon; or

(c) upon the succession of any person as trustee to a person appointed as trustee under a will or any instrument of trust or of any provident fund or any investment;

(a) in the case of a transfer of ownership by a deed of gift, the donee; and

(b) in the case of a transfer of ownership by gift by a testamentary disposition, the person to whom it is so gifted; and

(a) in the case of any property of which the transfer of ownership took place by sale, the price realized by such sale;

(b) in the case of any property of which the transfer of ownership took place otherwise than by sale, the amount equal to the market value of such property on the date of such transfer.

(1) The Minister may make regulations for the purposes of carrying out or giving effect to the principles and provisions of this Act, and in respect of matters that are by this Act required to be prescribed.

(2) Every such regulation shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in the regulation.

(3) Every such regulation shall, as soon as convenient after its publication in the Gazette, be brought before Parliament for approval. Any such regulation that is not so approved shall be deemed to be rescinded as from the date of disapproval, but without prejudice to anything previously done thereunder.

(4) Notification of the date on which a regulation is deemed to be rescinded shall be published in the Gazette.

88A.

88B. No duty shall be chargeable or payable under the Stamp Ordinance on or in respect of any instrument of assignment by way of pledge to the Central Bank under this Part of this Act, and accordingly, for the purposes of that Ordinance, such instrument shall be deemed to be exempt from such duty.

88C. No instrument of assignment by way of pledge to the Central Bank under this Part of this Act shall require registration under the Registration of Documents Ordinance, and accordingly any such instrument shall be deemed not to be void by reason only of its not being so registered.

88D. No assignment by way of pledge shall require execution before a licensed notary public and witnesses as provided by section 2 of the Prevention of Frauds Ordinance, and accordingly any such assignment shall be deemed not to be void by reason only of its not being so executed.

88E.

88F. In this Part of this Act,-

88G. The provisions of this Part of this Act shall have effect notwithstanding anything to the contrary in the provisions of any other written law, and accordingly in the event of any conflict or inconsistency between the provisions of this Part of this Act and the provisions of such other written law, the provisions of this Part of this Act shall prevail over the provisions of such other written law.

(1) Subject to the provisions of subsection (2), the Bank is hereby authorized to acquire the whole or any part of any agricultural, residential or business premises, if the Bank is satisfied that those premises were, at any time before or after the appointed date but not earlier than the first day of January, 1952,-

(2) No premises shall be acquired under subsection (1)-

For the purposes of paragraph (d) of this subsection, ” member of the family “, when used in relation to any person means the spouse of that person or any son or daughter of that person over eighteen years of age, or any parent, brother or sister dependent on that person.’; and

(2A). Where the Bank entertains an application for the acquisition of any premises referred to in subsection (1), the Bank shall-

Every notice under paragraph (b) shall be registered by the Registrar of Lands in the manner prescribed in the Registration of Documents Ordinance for the registration of an instrument affecting or relating to land and shall be deemed for such purposes to be an instrument affecting or relating to premises the prescribed particulars of which are set out in such notice:

Provided that if the Bank determines that such premises shall not be acquired for the purposes of this Part of this Act, the Bank shall forthwith cancel such notice and give written information of the cancellation to the Registrar of Lands who shall register such cancellation.

(2B)

(3) The question whether any premises which the Bank is authorized to acquire under this Part of this Act should or should not be acquired shall be determined by the Bank and every such determination of the Bank shall be final and conclusive and shall not be called in question in any court.

(3A) for the purposes of making a determination under subsection (3), the Bank shall cause an inquiry to be held into the application by an inquiring officer appointed by the Bank. The inquiring officer appointed by the Bank shall give the owner of the premises to which the application relates and the person making the application, an opportunity of being heard either in person or by an agent authorized in that behalf, and shall have all the powers of a District Court”

(4) Where the Bank has determined that any premises shall be acquired for the purposes of this Part of this Act, the Bank shall-

Every notice under paragraph (b) shall be registered by the Registrar of Lands in the manner provided in the Registration of Documents Ordinance for the registration of an instrument affecting or relating to land and shall be deemed for such purposes to be an instrument affecting or relating to the premises the prescribed particulars of which are set out in such notice.

(1) Where the Bank has determined that any premises shall be acquired for the purposes of this Part of this Act, the Chairman of the Board of Directors of the Bank shall cause such determination to be notified to the Minister.

(2) Upon being notified of the determination of the Bank in respect of any premises, the Minister may, by Order (hereafter in this Part of this Act referred to as a ” vesting Order”) published in the Gazette, vest in the Bank, with effect from such date as shall be specified in the Order, the premises to which such determination relates.

(3) Where a vesting Order under subsection (2) in regard to any premises is published in the Gazette, such premises shall, with effect from the date specified in the Order under that subsection, vest absolutely in the Bank free from all encumbrances.

For the removal of doubts, it is hereby declared that any right conferred on the tenant of any premises by the Rent Act No 7 of 1972 and the protection of Tenants (Special Provisions) Act is an encumbrance within the meaning of this subsection.

(4) Any person specially or generally authorized in that behalf by the Chairman of the Board of Directors of the Bank may take possession of any premises vested in the Bank by a vesting Order.

(5) The person who, under subsection (4), is authorized to take possession of any premises vested in the Bank by a vesting Order shall, by notice given to the person in occupation or in possession of such premises or exhibited in some conspicuous place in, or in the vicinity of, such premises,-

(6) Any notice required to be given to any person under subsection (5) shall be deemed to be given to him if such notice is sent to him by registered letter through the post.

“(7) Where any person in occupation or in possession of such premises or any person interested in such premises or his authorized agent is not present on the date and at the time and place specified in the notice given under subsection (5), or if any such person is present but refuses to allow the authorized officer to take possession of such premises, the authorized officer shall, upon application made to the District Court having jurisdiction over the place where such premises are situate, and upon production of the vesting Order made under subsection (2), be entitled to obtain an order for delivery of possession of such premises.

(8) Every application made under subsection (7) shall be made, and shall be disposed of, by way of summary procedure in accordance with the provisions of Chapter XXIV of the Civil Procedure Code; and on all documents filed for the purposes of each such application and on all proceedings held thereupon, stamp duties and other charges shall be payable at the respective rates payable under any written law for the time being in force, on application for, and proceedings connected with or incidental to, the execution of a decree of a District Court for the delivery of possession of a property of the same value as the property to which such application relates.”.

(1) Notwithstanding that any premises have vested in the Bank by virtue of a vesting Order, the Minister may at any time by a subsequent Order published in the Gazette (hereafter in this section referred to as a ” divesting Order “) revoke that vesting Order.

(2) The following provisions shall apply in any case where a vesting Order in respect of any premises is revoked by a divesting Order: –

(3) The preceding provisions of this section shall have effect notwithstanding anything in any other provisions of this Act or in any other written law.”

(a) his name and address,

(b) the nature of his interest in such premises,

(c) the particulars of his claim, and

(d) how much of such compensation is claimed by him.

(a) a copy of any such report in regard to the condition of the aforesaid premises as has been made by or under the authority of the Bank under any regulation made under this Part of this Act, if a copy of that report has not already been served on the claimant;

(b) a copy of any such assessment of the compensation payable under this Part of this Act in respect of the aforesaid premises as has been made by or under the authority of the Bank;

(c) a notice requiring the claimant, within the time specified in the notice-

(1) The Chairman of the Board of Directors of the Bank shall refer to the Compensation Tribunal for determination the amount of the compensation payable in respect of any property vested in the Bank under this Part of this Act and shall transmit to the Tribunal all claims made to such compensation, together with all documents furnished by the claimants in support of their claims, and all documents, copies of which have been served on or transmitted to the claimants by the Bank.

(2) A reference made under subsection (1) to the Compensation Tribunal is hereafter in this Part of this Act referred to as a ” reference for an award as to compensation”.

(1) The amount of compensation to be paid under this Act in respect of any premises vested in the Bank shall be –

(2) Where any damage had been caused to any premises vested in the Bank under this Act, during the period commencing on the date of the notice sent under subsection (2A) of section 3 to the owner of such premises and ending on the date of publication of the vesting Order in regard to such premises, the Compensation Tribunal shall have the power to assess the amount of such damage and to set-off against the compensation payable in respect of such premises, the amount so assessed. “.

(1) The amount of compensation to be paid to any person in respect of any premises vested in the Bank under this Part of this Act shall be proportionate to the interest such person had in such premises on the date on which such premises were so vested.

(2) Where any premises are subject to a mortgage or lease at the time when those premises were vested in the Bank under this Part of this Act, the rights of the mortgagee or of the lessee, shall, notwithstanding the provisions of subsection (3) of section 72, be limited to any sum paid under this Part of this Act as compensation in respect of those premises.

(1) There shall be established, for the purposes of this Part of this Act, a Compensation Tribunal consisting of ten members appointed by the Governor-General of whom at least five shall be persons with judicial or legal experience.

(2) A person shall be disqualified for appointment, or for continuing, as a member of the Compensation Tribunal if he is a Senator, a Member of Parliament, or a member of the Board of Directors of the Bank or an officer or an employee of the Bank.

(3) A member of the Compensation Tribunal with judicial or legal experience shall be appointed to be the Chairman, and another member with similar experience shall be appointed to be the Vice-chairman, of the Tribunal by the Governor-General on the recommendation of the Minister.

(4) Every member of the Compensation Tribunal shall, unless he earlier vacates office or is removed therefrom by the Governor-General, hold office for a period of three years. Any member of the Tribunal who vacates office by effluxion of time shall be eligible for reappointment.

(5) There shall be appointed a Secretary to the Compensation Tribunal (hereafter in this Part of this Act referred to as the ” Secretary “) and such other officers and servants as may be necessary for the performance of the work of the Tribunal.

(6) The members, officers and servants of the Compensation Tribunal shall be remunerated at such rates as may be determined by the Board of Directors of the Bank.

(1) The Secretary shall, under the direction of the Chairman or in his absence the Vice-Chairman of the Compensation Tribunal, convene meetings of the Tribunal for the consideration and determination of references for awards as to compensation.

(2) The Chairman or Vice-Chairman and four other members of the Compensation Tribunal shall be summoned to a meeting of the Tribunal. Such other members shall be chosen by lot by the Secretary. The quorum for a meeting of the Tribunal shall be three members.

(3) Two separate meetings of the Compensation Tribunal may be convened and held at the same time to consider and determine different references for awards as to compensation.

(4) Where the Chairman or the Vice-Chairman is summoned to a meeting of the Compensation Tribunal, the Chairman or Vice-Chairman, as the case may be, shall preside at that meeting, and in the absence of the Chairman or the Vice-Chairman the members of the Tribunal summoned to and present at that meeting shall choose from themselves a chairman for the meeting.

(5) A member of the Compensation Tribunal who is interested in any matter which is the subject of a reference for an award as to compensation or who has been consulted as an advocate or proctor or in any other capacity in regard to that matter by or on behalf of any person interested therein shall not participate in any proceedings of a meeting of the Tribunal on such reference.

(6) A meeting of the Compensation Tribunal may from time to time be postponed or adjourned.

(1) Every reference for an award as to compensation shall be considered and determined at a meeting of the Compensation Tribunal.

(2) The Secretary shall fix a date, time and place for the consideration and determination by the Compensation Tribunal of each reference for an award as to compensation.

(3) The Secretary shall, in respect of every reference for an award as to compensation, keep record of all such proceedings before the Compensation Tribunal as relate to that reference.

(1) The Chairman or Vice-Chairman of the Compensation Tribunal and, if the Chairman or the Vice-Chairman is not presiding at any meeting of the Tribunal, the chairman of that meeting shall, for the purposes of the consideration and determination of any reference for an award as to compensation, have all the powers of a District Court-

(2) Every person giving evidence on any matter before a meeting of the Compensation Tribunal shall be bound to state the truth on such matter.

(3) Every person who attends a meeting of the Compensation Tribunal as a witness shall be paid as travelling and other expenses such sum as may be determined by the chairman of that meeting.

(1) Where any person –

(2) Where the Compensation Tribunal determines that a person has committed any offence of contempt referred to in subsection (1) against or in disrespect of its authority, it may cause its secretary to transmit to the Court of Appeal a certificate setting out such determination; every such certificate shall be signed by the Chairman of the Compensation Tribunal.

(3) In any proceedings for the punishment of an offence of contempt which the Court of Appeal may think fit to take cognizance of as provided in subsection (5) hereunder, any document purporting to be a certificate signed and transmitted to that court under subsection (2) shall –

(4) In any proceedings taken as provided in subsection (5) hereunder for the punishment of any alleged offence of contempt against or in disrespect of, the authority of the Compensation Tribunal no member of such Tribunal shall, except with his own consent, be summoned or examined as a witness.

(5) Every offence of contempt committed against or in disrespect of the authority of the Compensation Tribunal shall be punishable by the Court of Appeal.

(1) The determination made at a meeting of the Compensation Tribunal on any matter considered at that meeting shall be deemed to be the determination of the Tribunal on that matter.

(2) Where the members of the Compensation Tribunal who consider any matter disagree with regard to the determination on that matter, the determination of the majority of them shall be the determination of the Tribunal on that matter, and, where the members are equally divided in their opinion, the determination supported by the chairman of the meeting by which that matter is considered shall be the determination of the Tribunal on that matter.

(3) Every determination of the Compensation Tribunal shall contain the reasons therefor.

(1) Where a copy of any report made by or under the authority of the Bank in regard to the condition of any premises vested in the Bank under this Part of this Act is served on any claimant to compensation in respect of such premises, then, in so far as that claimant is concerned, that report shall, in any proceedings relating to the claim of the claimant before the Compensation Tribunal, be prima facie evidence of the facts stated therein until the contrary is proved.

(2) Where a copy of the Bank’s assessment of compensation in respect of any premises is served on any claimant to such compensation, that assessment shall, in any proceedings relating to the claim of the claimant before the Compensation Tribunal, be primafacie evidence of the facts stated therein until the contrary is proved.

(3) Where a report in regard to the condition of any premises vested in the Bank, or the Bank’s assessment of any compensation, is prima facie evidence of the facts stated therein under the preceding provisions of this section in any proceedings relating to a claim to compensation before the Compensation Tribunal, then, the claimant shall not be entitled to produce in those proceedings any document in support of any objection to such report or assessment unless that document had been produced to the Bank as required by or under this Part of this Act.

(1) Where a reference for an award as to compensation is made to the Compensation Tribunal in respect of any premises vested in the Bank, the Tribunal shall, after considering all such matters and hearing all such witnesses as may be necessary for the purpose and after complying with the provisions of section 88 and section 89 make, save as otherwise provided in subsection (2), an award determining-

Provided that, where there is a dispute as to the persons entitled to such compensation or as to the apportionment of such compensation among the persons entitled to such compensation, the Tribunal shall defer the making of an award and shall refer the dispute for decision to the District Court within whose jurisdiction such premises are situated and shall, after such Court or, in the event of an appeal, the Supreme Court makes its decision on such dispute, make an award in accordance with such decision.

(2) Any person who is dissatisfied with the decision of the District Court on a reference made to such Court under the proviso to subsection (1) may appeal against such decision to the Supreme Court within the time and in the manner provided in the Civil Procedure Code for appeals against decrees in civil suits. The decision of the Supreme Court on any appeal to such Court under this subsection shall be final.

(3) Where no person makes a claim to compensation in respect of any premises vested in the Bank, it shall not be necessary to determine in the award under this section the matters specified in paragraphs (a) and (c) of subsection (1) and to comply with the provisions of subsection (4) relating to the giving of notice of the award to claimants to compensation.

(4) The Compensation Tribunal shall cause written notice of awards to be given to the Bank and the claimants to compensation.

(5) An award of the Compensation Tribunal shall be final and shall not be called in question in any court.

Any premises vested in the Bank in consequence of an application made to the Bank for the acquisition of such premises by any person entitled to make such application under the preceding provisions of this Part of this Act may be let by the Bank to such person or where such person is dead, to the surviving spouse, if any, or any descendant of such person upon such terms as will enable the person to whom such premises are let to become the owner thereof after making a certain number of half-yearly payments as rent.

(2) Where a default is made in the making of any half-yearly payments due as rent, default shall be deemed to have been made in respect of the whole of the unpaid half-yearly payments and the Chairman of the Bank may authorize any person in writing to sell such premises at any time not less than twenty-one days after the date of such authorization; to recover the whole of the unpaid half-yearly payments, together with interest thereon and the cost of advertising the sale and other incidental expenses connected with the sale of the premises.

(3) Where any premises are sold in pursuance of an authorization under subsection (2), the Chairman of the Bank shall sign and issue a certificate of sale to the purchaser and thereupon the title of the owner of the premises shall vest in the purchaser, and the Chairman shall, after deducting from the sale proceeds all monies advanced by the Bank, interest thereon and other costs recoverable, pay the applicant the surplus, if any, less ten per centum to be credited to a contingencies fund for bad and doubtful debts.

(4) The purchaser of any premises sold in pursuance of an authorization under subsection (2), shall, upon application being made to the District Court having jurisdiction over the place where the premises are situated, and upon production of certificate of sale issued in respect of the premises under subsection (3), be entitled to obtain an order for delivery of possession of the premises.

(5) Every application under subsection (4) shall be made and shall be disposed of by way of summary procedure in accordance with the provisions of Chapter XXIV of the Civil Procedure Code.

(1) Where the Bank considers it necessary that an inspection, examination or survey should be made of any premises which the Bank is authorized under this Part of this Act to acquire, it shall be lawful for any person authorized in that behalf by the Chairman of the Board of Directors of the Bank, together with such persons, implements, materials, vehicles and animals as may be necessary, to enter upon and to take levels of such premises, and to do all such other acts as may be necessary for the purpose for such inspection, examination or survey:

Provided, however, that no person shall enter or do any act upon any premises in pursuance of the powers conferred on him by the preceding provisions of this section except after giving the owner or occupier of those premises, in the prescribed manner, not less than seven days’ notice of his intention to enter those premises or to do such act thereon.

(2) Every person who-

(1) The Chairman of the Board of Directors of the Bank or any other person authorized in that behalf by such Chairman may, by notice in writing, direct any person to furnish before a specified date to the Bank or to such officer thereof as may be specified In the notice-

(2) Where any person has a plan of any premises referred to in section 71, the Chairman of the Board of Directors of the Bank or any other person authorized in that behalf by such Chairman may by written notice direct that person to produce the plan before a Specified date to such Officer of the Bank as is specified in the notice in order that the Bank may verify the boundaries and extent of those premises.

(3) Any notice required to be given to any person under the preceding provisions of this section shall be deemed to be given to him if such notice-

(4) Any person-

(1) Where any premises have been inspected by any person authorized in that behalf by the Chairman of the Board of Directors of the Bank for the purpose of assessing the value of such premises with a view to acquiring such premises under the provisions of this Part of this Act, such Chairman may by written notice given in the same manner as a notice under section 93, prohibit the owner or occupier of such premises from committing or permitting the commission of any damage to those premises or to any plantation, building or other structure on those premises, or any other act which will diminish the value of those premises.

(2) Where it is decided not to vest in the Bank by vesting Order made under the provisions of this Part of this Act any premises in respect of which a notice has been given to any person under subsection (1), the Chairman of the Board of Directors of the Bank shall forthwith cancel that notice and give written information of the cancellation to that person.

(3) A person who contravenes a notice issued to him under subsection (1) shall be guilty of an offence and shall, on conviction after summary trial before a Magistrate, be liable to a fine not exceeding five hundred rupees.

(1) any determination made by the Ceylon State Mortgage Bank under section 70B(6) of that Ordinance in respect of any such application made to it, shall be deemed to be a determination made by the People’s Bank under section 71(8) of this Act;

(2) any premises vested in the Ceylon State Mortgage Bank under section 70C(3) of that Ordinance in consequence of any such application made to it, shall be deemed to be vested in the People’s Bank under section 72(3) of this Act;

(3) any award made under section 70x of that Ordinance by the Compensation Tribunal established under that Ordinance, in consequence of any such application made to the Ceylon State Mortgage Bank, shall be deemed to be an award made under section 90 of this Act by the Compensation Tribunal established under this Part of this Act, and

(4) all such further action, proceedings or steps as are required to be taken by the Ceylon State Mortgage Bank under the provisions of that Ordinance in respect of any such application made to that Bank as is by virtue of the provisions of this section deemed to be an application made to the People’s Bank, shall be taken by the People’s Bank under the corresponding provisions of this Act.”.

(1) The Minister may make regulations-

(2) Every regulation made by the Minister shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in the regulation.

(3) Every regulation made by the Minister shall, as soon as may be convenient after its publication in the Gazette, be brought before the Senate and the House of Representatives for approval. Any regulation which is not so approved shall be deemed to be rescinded as from the date of disapproval, but without prejudice to anything previously done thereunder. Notification of the date on which any regulation made by the Minister is deemed to be rescinded shall be published in the Gazette.

2A.

(1) in item 4 of that Part, by the substitution, for the figures ” 0.50″ appearing in the column headed ” Duty “, of the figures ” 1. 0 “;

(2) in item 8 of that Part-

(3) in item 15 of that Part, by the substitution, for the figures ” 0.25 ” appearing in the column headed ” Duty “, of the figures ” 1. 0 “;

(4) in item 17 of that Part, by the substitution, for the figures ” 0. 6″ appearing in the column headed ” Duty “, of the figures ” 0.10 “;

(5) in item 31 of that Part, as amended by Act No. 16 of 1958, by the substitution, for the figures “0.10 ” appearing in the column headed ” Duty “, of the figures ” 0.50 “;

(6) in item 36 of that Part, by the substitution, for the figures ” 0. 6″ appearing in the column headed ” Duty “, of the figures ” 0.10 “;

(7) in item 37 of that Part-

(8) in item 42 of that Part, by the substitution, for the figures ” 10. 0 ” appearing in the column headed ” Duty “, of the figures ” 50. 0 “; and

(9) in item 52 of that Part, by the substitution, for the figures ” 0. 6″ appearing in the column headed ” Duty “, of the figures ” 0.50 “.

(1) under the heading “IN THE SUPREME COURT”-

(2) under the heading “IN THE DISTRICT COURTS “-

(3) under the heading ” IN THE COURTS OF REQUESTS “, by the substitution, for all the words and figures ” in cases of Rs. 50, and upwards, Re. 1.”, of the words and figures ” in cases of Rs. 50 and up to Rs. 300, Re. 1, and in cases over Rs. 300, Rs. 2.”;

(4) in the item “Claim or objection to property seized “, appearing under the heading ” CLAIM PROCEEDINGS “, by the substitution, for the figures ” 0.60″ appearing under the heading ” Duty “, of the figures ” 1. 0 “;

(5) under the heading ” EXHIBITS “, by the substitution, for the words ” twelve cents “, of the words ” twenty-five cents “;

(6) under the heading ” MISCELLANEOUS “-

(7) under the heading “IN THE MAGISTRATES’ COURTS “,-

(a) by the substitution, for the figures ” 0.42″ appearing under the heading ” Duty “, of the figures ” 0.50 “;

(b) by the substitution, for the figures ” 0.60″ appearing under the heading ” Duty “, of the figures “0.75”;

(c) by the substitution, for the figures ” 0.90″ appearing under the heading ” Duty “, of the figures ” 1.20 “;

(d) by the substitution, for the figures “1.20” appearing under the heading ” Duty “, of the figures ” 1.50 “;

(e) by the substitution, for the figures ” 1.80″ appearing under the heading ” Duty”, of the figures ” 2. 0 “;

(f) by the substitution, for the figures “2.40” appearing under the heading ” Duty “, of the figures ” 2.75 “; and

(g) in the second proviso to that Part, by the substitution, for the words ” ten cents “, of the words ” twenty-five cents “.

(a) in item 2, by the substitution, for the figures ” 2.50 ” appearing under the heading ” Duty “, of the figures ” 5. 0 “; and

(b) by the addition at the end of that Part of the following new item;-

(1) Any motor car to which this Part of this Act applies shall not, during a period of seven years commencing from the date of the first registration of that motor car, or the date of the importation of that motor car if that motor car had not been registered, be sold by its owner except with the previous approval in writing of the Registrar:

Provided that such period may be reduced or extended in regard to all such motor cars or to any particular description of such motor cars as the House of Representatives may by resolution determine.

(2) A sale of any motor car to which this Part of this Act applies in contravention of the provisions of subsection (1) shall be null and void and of no effect in law.

(1) Every application by the owner of a motor car to which this Part of this Act applies for approval to sell that motor car shall be made to the Registrar in such form as may be provided by the Registrar for the purpose and the application shall contain all such information as the Registrar may require for the disposal of the application.

(2) Upon receipt of an application under subsection (1), the Registrar may-

(a) by the person specified in the application as the intending purchaser of that motor car, or

(b) where that motor car is directed by the Registrar to be sold by auction sale or tender, by the purchaser at the auction sale or the person who makes the highest offer by tender, as the case may be,

(a) if that motor car was bought by the owner from a dealer of motor cars and was unused at the time he bought it, a sum equivalent to eighty per centum of the difference between-

(b) if that motor car was imported into Ceylon by the owner of that motor car, a sum equivalent to eighty per centum of the difference between-

(c) if that motor car was bought second-hand by the owner of that motor car, an amount equivalent to eighty per centum of the difference between-

(1) any motor car registered for the first time under the provisions of the Motor Traffic Act on or after January 26, 1961, and

(2) any motor car so registered prior to January 26, 1961, if such motor car had prior to that date been imported into Ceylon free of customs duty payable under the Customs Ordinance or on special concessions regarding import of motor cars, for the use of the person who makes an application to the Registrar to sell that motor car, but does not include-

(1) Subject to the other provisions of this Part of this Act, there shall be charged for every year of assessment commencing on or after October 1, 1963, from every person who carries on in Ceylon the business of a manufacturer or any other business a tax (hereafter in this Part of this Act referred to as the ” business turnover tax “) in respect of the turnover made by that person from that business computed at such rate as the Minister may fix by Order published in the Gazette.

The rate of the business turnover tax in respect of any business may be determined by reference to the nature of such business and accordingly different rates of such tax may be determined in respect of different classes or descriptions of businesses.

(2) The rate of the business turnover tax in respect of any class or description of business may, from time to time, be varied by the Minister by Order published in the Gazette.

(3) Every Order under subsection (1) or subsection (2) shall come into force on the date of its publication in the Gazette or on such later date as may be specified in the Order and shall be brought before the House of representatives within a period of three months from the date of the publication of such Order in the Gazette, or, if no meeting of the House of Representatives is held within such period, at the first meeting of the House of Representatives held after the expiry of such period, by a motion that such Order shall be approved. There shall be set out in a schedule to every such motion the text of the Order to which the motion refers.

(4) Any Order under subsection (1) or subsection (2) which the House of Representatives refuses to approve shall, with effect from the date of such refusal, be deemed to be revoked but without prejudice to the validity of anything done thereunder. Notification of the date on which any such Order is deemed to be revoked shall be published in the Gazette.

(5) The maximum amount of the business turnover tax charged from any person for any year of assessment ending on or before September 30, 1968, in respect of the business carried on by him shall in no case exceed eighty per centum of the profits or income of that person from that business as ascertained under the provisions of Chapter II of the Inland Revenue Act, No. 4 of 1963, before making the deduction allowable under section 157 of this Part of this Act or, where the Inland Revenue Act does not apply to such person, eighty per centum of the profits or in come of such person from that business as ascertained under the provisions of Chapter II of the last-mentioned Act before making the deduction allowable under section 157 of this Part of this Act as though the Inland Revenue Act were applicable to him, and accordingly such person shall be entitled to a refund of the sum so paid by him as business turnover tax in excess of such maximum amount.

(1) Any recovery of business turnover tax for any period commencing on November 5, 1975 and ending on the date of coming into operation of this section in respect of the business of operating a hotel or a guest house by virtue of a relevant Order shall be deemed not to be invalid by reason only of the fact that such hotel or guest house had not been registered with the Ceylon Tourist Board established under the Ceylon Tourist Board Act, No. 10 of 1966 ;

(2) Every reference to “the business of operating a hotel or a guest house registered’ with the Ceylon Tourist Board” in a relevant Order shall be deemed with effect from the date of such Order to be a reference to “a business of operating a hotel or a guest house approved by the Ceylon Tourist Board established under the Ceylon Tourist Board Act, No. 10 of 1966 “, and accordingly, any person chargeable with business turnover tax by virtue of a relevant Order in respect of the business of operating a hotel or a guest house for any period commencing on the date of such Order and ending on the date of coming into operation of this section shall-

(3) Where at the hearing in any court or tribunal, of any appeal, action, application or other proceeding (whether such appeal, action, application or proceeding was preferred or instituted before or after the date of coming into operation of this Part of this Act), any question or matter arises as to the validity or relevant Order under section 119 such question or matter shall be determined in accordance with the preceding provisions of this section.

(4) In this section. “relevant Order” means an Order made under section 119 and published in-

“(1) A person shall, in respect of any business carried on by him in Sri Lanka, be chargeable with business turnover tax-

“(1A)Where a person is chargeable with business turnover tax in respect of any business carried on by him and a change of ownership of that business occurs, then not-withstanding the provisions of sub-section (1), the new owner of that business shall be chargeable with business turnover tax as though he had been the owner of that business immediately before the occurrence of the change of ownership. “;

(1B)

(1B)

‘ (3)

(1) The Minister may by Order published in the Gazette declare any article specified in such Order to be an excepted article for the purposes of this Part of this Act. Different articles may be declared to be excepted articles in respect of different classes or descriptions of businesses.

(2) Where an article is, under subsection (1), declared to be an excepted article in respect of any class or description of business, no business turnover tax shall be payable in respect of the sum realized by the sale of such article.

(1) Every person chargeable with business turnover tax shall, in respect of the business carried on by him, pay such tax for any year of assessment in four instalments, each such instalment being in respect of each quarter of that year of assessment:

Provided that no such tax shall be payable in respect of the quarter commencing on October 1, 1963, and ending on December 31, 1963.

(2) The business turnover tax in respect of any quarter in a year of assessment shall be paid not later than fifteen days after the expiry of that quarter. Any tax not so paid shall be deemed to be in default and the person by whom such tax is payable or, where any tax is payable by more than one person or by a partnership, then each of such persons and each partner in the partnership shall be deemed to be a defaulter for the purposes of this Part of this Act.

(3) Where any business turnover tax is in default, the defaulter shall become liable to pay, in addition to such tax,-

(4) Where upon the final determination of an appeal made under section 138, any tax in default to which any sum or sums under sub-section (3) has or have been added is reduced, then such sum or sums shall be calculated on the tax as so reduced.

(1) Every person who carries on any business in Sri Lanka in any year of assessment commencing on or after October 1, 1971, but prior to October 1, 1977, shall-

furnish to the Commissioner-General not later than fifteen days after the expiry of that quarter, a return setting out the turnover of that business for that quarter. Every such return shall be in the prescribed form and shall contain all such particulars as may be required to be set out in such form.

(2) Every person who carries on any business in Sri Lanka in any year of assessment commencing on or after October 1, 1977, shall

furnish to the Commissioner-General not later than fifteen days from the expiry of that quarter, a return setting out the turnover of that business for that quarter. Every such return shall be in the prescribed form and shall contain all such particulars as may be required to be set out in such form. “.

(1) Where any person –

the Assessor shall assess the amount of the business turnover tax which such person, in the judgment of the Assessor, ought to have paid for that quarter and shall, by notice in writing, require such person to pay such amount immediately. The amount so assessed in respect of any person for a quarter shall, subject to the provisions of section 125, be deemed to be the amount of the business turnover tax payable by him for that quarter.

(2) An assessment made under subsection (1) in respect of any person for any quarter in a year of assessment shall not affect the liability of such person to a penalty under section 122 as though the amount assessed were the amount of business turnover tax due from him for that quarter.

(3) Where, in the opinion, of the Assessor, the amount paid as business turn-over tax for any quarter of a year of assessment by any person who has failed to furnish under section 123 a return in respect of that quarter is less than the proper amount payable by that person for that quarter, the Assessor shall assess the amount which, in the judgement of the Assessor, ought to have been paid by such person and shall, by notice in writing require that person to pay on or before a date set out in that notice, the difference between the amount so assessed and take amount paid by that person.

(4) Where an assessment is made under sub-section (3) in respect of any person for any quarter in any year of assessment, the difference between the amount so assessed the- amount paid by that person as business turnover tax for that quarter shall be deemed to be business turnover tax in default for that quarter and accordingly such persons shall from the date on which such person should have paid that tax for that quarter under sub-section (2) of section 122, be liable in respect of that amount to the penalty under sub-section (3) of that section.

Where it appears to an Assessor that a person chargeable with business turnover tax has, for any quarter in a year of assessment, paid as tax an amount less than the proper amount of the tax payable by him for that quarter, or chargeable from him for that quarter, an Assessor may, at any time, assess such person at the additional amount at which, according to the judgment of the Assessor, tax ought to have been paid by such person. The Assessor shall give such person notice of assessment.

(2) Where an assessment is made under sub-section (1) in respect of any person for any quarter in any year of assessment, the amount so assessed shall be deemed to be business turnover tax in default for that quarter and accordingly such person shall, from the date on which such person should have paid the tax for that quarter under section 122 (2), be liable to the penalty under section 122 (3) in respect of such amount,

(1) An Assessor may, by notice in writing, direct any person who, in the judgment of that Assessor, is a person chargeable with business turnover tax to furnish within the time specified in such notice a return containing such particulars as the Assessor may require.

(2) An Assessor may give notice in writing to any person when and as often as he thinks necessary requiring him to furnish within the time specified in such notice-

(3) For the purpose of obtaining full information in respect of the turnover from any business carried on by any person, an Assessor may give notice in writing to such person requiring him-

(4) For the purposes of this Part of this Act, an Assistant Commissioner may give notice in writing to any person requiring him-

(5) A person who attends in compliance with a notice given under subsection (4) may be allowed by the Commissioner the expenses reasonably incurred by him in so attending.

(6) An Assistant Commissioner, or an Assessor with the approval of an Assistant Commissioner, may retain in his custody, as long as such retention is necessary for the purposes of this Part of this Act, any books, accounts, trade lists, stock lists, registers, cheques, paying in slips, auditors’ reports, or other documents which are or have been produced before him or transmitted to him under subsection (3) or subsection (4) or which otherwise come or have come into his possession.

(7) A return, statement or form purporting to be furnished under this Part of this Act by or on behalf of any person shall for all purposes be deemed to have been furnished by that person or by his authority, as the case may be, unless the contrary is proved, and any person signing any such return, statement or form shall be deemed to be cognizant of all matters therein.

(a) the date on which such transaction was entered into;

(b) the nature of such transaction; and

(c) the amount of money received or receivable in respect of such transaction.

(1) Every person chargeable with business turnover tax shall keep and maintain in respect of each year of assessment a register of transactions.

(2) The register of transactions kept by any person in respect of any year of assessment shall be retained and preserved by him for a period of five years after the expiry of that year of assessment.

(1) Subject as hereinafter provided, where during the course of a year of assessment a person chargeable with business turnover tax ceases to carry on any business in respect of which he is chargeable with such tax, he shall, notwithstanding that he has ceased to carry on such business, be liable to pay such tax for the period during which he carried on that business in that year of assessment.

(2) Where any person carrying on a business transfers such business to any other person, any business turnover tax payable in respect of such business for any period prior to the transfer may, if it cannot be recovered from the transferor, be recovered from the transferee and the provisions of this Part of this Act as to collection and recovery of the business turnover tax shall apply accordingly.

(1) Where any person chargeable with business turnover tax dies, the executor of such deceased person shall, in respect of all periods prior to the date of death of such person, be chargeable with the business turnover tax which such person would be chargeable if he were alive; and shall be liable to do all acts, matters and things which such person if he were alive would be liable to do under this Part of this Act:

Provided that-

(2) Where an executor on behalf of the estate of a deceased person carries on any business which is a part of such estate, such executor shall, in respect of such business, be chargeable with the business turnover tax with which such person would be chargeable if he were alive.

(1) Where any business in respect of which business turnover tax is payable is carried on by any person on behalf of any other person as the agent of such other person, the first-mentioned person shall be chargeable with business turnover tax in respect of that business in like manner and to the like amount as the latter-mentioned person would be chargeable under this Part of this Act.

(2) Where any business in respect of which business turnover tax is payable is subject to a trust, the trustee of that trust shall be liable to pay such tax in respect of such business.

(1) Notwithstanding anything in the Companies Ordinance, where a company is wound up and where any business turnover tax to which that company is liable cannot be recovered, then, every person who was a director of the company at any time during the period in respect of which such tax is charged shall be jointly and severally liable for ‘the payment of such tax unless he proves that the default in payment of tax cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairsof the company, and the provisions of this Part of this Act as to collection and recovery of business turnover tax shall apply accordingly.

(2) Where a body of persons is dissolved and where any business turnover tax to which such body of persons is liable cannot be recovered, then, every person who was a member of that body of persons during the period in respect of which the tax is charged shall be jointly and severally liable for the payment of such tax unless he proves that the default in payment of tax cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of that body, and the provisions of this Part of this Act as to collection and recovery of business turnover tax shall apply accordingly.

(1) Every person who makes any payment in pursuance of a contract to which he is a party or on behalf of any other person who is a party to a contract shall, whether or not such contract was entered into before the coming into operation of this section, deduct from such payment, business turnover tax which shall be a percentage of such payment at a rate to be prescribed by the minister by Order published in the Gazette and the amount of tax so deducted shall be a debt due from such person to the Republic and shall be recoverable forthwith or may be assessed and charged upon such person in addition to any business turnover tax if any payable by him under this Part of this Act;

Provided that where the total consideration payable for the performance of such contract does not exceed five hundred thousand rupees no such deduction shall be made.

(2) Any person who deducts business turn over tax in accordance with the provisions of sub-section (1) shall-