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Short title.
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1. This Act may be cited as the Surcharge on Income Tax Act, No. 26 of 1982.
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Imposition of surcharge on income tax.
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2. Every person who is chargeable with income tax for the year of assessment commencing on April 1, 1981 (in this Act referred to as the ” relevant year “) shall, notwithstanding anything contained in any other written law or in any convention, grant or agreement, be liable to pay a surcharge on the income tax payable by him for the relevant year, calculated at the rates specified in the First Schedule to this Act.
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Reliefs in certain cases.
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3. Where the aggregate of
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(a) the income tax payable for the relevant year; and
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(b) the surcharge on income tax payable under this Act, by any person referred to in Column I of the Second Schedule to this Act, being a person whose taxable income for the relevant year does not exceed the amount specified in the corresponding entry in Column II of that Schedule, exceeds the difference between
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(i) the taxable income of such person for the relevant year, and
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(ii) the amount specified in the corresponding entry in Column III of that Schedule,
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the amount of such excess shall be deducted from the amount of the surcharge payable by him under this Act.
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For the purposes of this section, every reference to the taxable income of a person for the relevant year shall, in the case of a liquidator of a company, be read and construed as a reference to the taxable income for the relevant year, of the company of which he is the liquidator.
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Date for payment of surcharge.
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4. Every person liable to pay the surcharge under this Act shall, notwithstanding the fact that an assessment has not been issued to him, pay to the Commissioner-General not less than fifty per centum of the amount of the surcharge payable by him, on or before July 15, 1982, and the balance on or before November 30, 1982.
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Employer to deduct surcharge.
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5. Every employer who employs any employee from whose remuneration income tax for the relevant year is deductible, in accordance with the provisions of Chapter XV of the Inland Revenue Act, (not being an employee who is deemed by subsection (7) of section 67 of that Act to be a non-resident) shall also deduct, as the surcharge on income tax payable under this Act, in six monthly installments commencing from the month of June, 1982, the following amounts from the remuneration payable to such employee
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(a) where the income tax deductible from the remuneration of such employee for the relevant year, not being income tax payable on any profits from employment referred to in paragraph (c) of section 4 of the Inland Revenue Act, exceeds four thousand and twenty rupees but does not exceed fourteen thousand and two hundred rupees, an amount equal to five per centum of such income tax;
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(b) where the income tax deductible from the remuneration of such employee for the relevant year, not being income tax payable on any profits from employment referred to in, paragraph (c) of section 4 of the Inland Revenue Act, exceeds fourteen thousand and two hundred rupees but does not exceed ninety-six thousand five hundred and sixty rupees, an amount equal to ten per centum of such income tax ;
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(c) where the income tax deductible from the remuneration of such employee for the relevant year, not being income tax payable on any profits from employment referred to in paragraph (c) of section 4 of the Inland Revenue Act, exceeds ninety-six thousand five hundred and sixty rupees, an amount equal to fifteen per centum of such income tax.
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Reduction of surcharge when the aggregate of income tax, wealth tax and surcharge exceeds a certain limit.
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6. Where the aggregate of
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(a) the income tax payable for the relevant year ;
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(b) the wealth tax payable for the relevant year;
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(c) the surcharge on income tax payable under this Act; and
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(d) the surcharge on wealth tax payable under the Surcharge on Wealth Tax Act, 1982,
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by any person, exceeds eighty per centum of the aggregate of the assessable income of that person for that year and any profits and income (other than the net annual value of a residence and any subsidy exempt from income tax under the Inland Revenue Act), being profits and income exempt from income tax under that Act or any other enactment and which but for that exemption would have been taken into account in computing the assessable income of that person for the relevant year, the amount of such excess shall be set off against such surcharge on income tax or such surcharge on wealth tax or the aggregate of such surcharge on income tax and such surcharge on wealth tax.
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Certain provisions of the Inland Revenue Act to apply.
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7. The provisions of Chapter XIII and Chapters XV to XXVI of the Inland Revenue Act relating to the furnishing of return relating to income tax payable under that Act, the deduction of income tax, assessment, appeals against assessments, payment, recovery and refund of such tax shall, mutatis mutandis, apply to the furnishing of returns relating to the surcharge payable under this Act, and, the deduction, assessment, appeals against assessment, payment, recovery and refund, of such surcharge.
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Interpretation.
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8. In this Act, unless the context otherwise requires
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“assessable income”, ” Charitable Institution ” ; ” Commissioner-General “, ” executor “, ” people’s company “, ” person “, ” profits and income “, ” quoted public company “, ” receiver “, ” small company “, ” trustee ” and ” year of assessment” have the respective meanings assigned to them in the Inland Revenue Act ;
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co-operative society” means a co-operative society registered or deemed to be registered under the Co-operative Societies Law, No. 5 of 1972;
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employer”, “employee” and “remuneration” have the respective meanings assigned to them in Chapter XV of the Inland Revenue Act;
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” income tax” with reference to any person and the relevant year,
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(a) in section 2 and in the First Schedule to this Act, and
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(i) in relation to a resident company, means the income tax payable, under the Inland Revenue Act, by that Company for the relevant year less any income tax payable by that company for that year under paragraph (b) of subsection (I) of section 33 of that Act;
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(ii) in relation to a non-resident company, means the income tax payable, under the Inland Revenue Act, by that company for the relevant year less any income tax payable by that company for that year, under sub-paragraph (i) or sub-paragraph (ii) of paragraph (b) of subsection (i) of section 34 of that Act;
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(iii) in relation to a resident individual whose profits and income for the relevant year include any profits from employment referred to in paragraph (c) of section 4 of the Inland Revenue Act, means such income tax as would have been payable, under the Inland Revenue Act, by such individual had such profits from employment hot formed part of his profits and income for the relevant year;
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(iv) in relation to an individual who is deemed by subsection (7) of section 67 of the Inland Revenue Act to be a non-resident, means such income tax as would have been payable, under the Inland Revenue Act, by such individual had his profits from employment in Sri Lanka for the relevant year not formed part of his profits and income for that year ; and
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(v) in relation to any other person, means the income tax payable, under the Inland Revenue Act, by that person for the relevant year ; and
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(b) in sections 3 and 6, means the income tax payable, under the Inland Revenue Act, by that person for that year;
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” Inland Revenue Act” means the Inland Revenue Act, No. 28 of 1979 ;
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” taxable income ” with reference to any person and the relevant year, means the taxable income of that person for that year, computed in accordance with the provisions of the Inland Revenue Act; and
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(a) in the case of a resident individual whose profits and income for the relevant year include any profits from employment referred to in paragraph (c) of section 4 of the Inland Revenue Act, be deemed to mean such amount as would have been the taxable income (computed in accordance with the provisions of the Inland Revenue Act) of such individual for that year had such profits from employment not formed part of the profits and income of such individual for that year;
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(b) in the case of an individual who is deemed by subsection (7) of section 67 of the Inland Revenue Act to be a nonresident, be, deemed to mean such amount as would have been the taxable income (computed in accordance with the provisions of the Inland Revenue Act) of such individual for the relevant year had his profits from employment in Sri Lanka for that year not formed part of his profits and income for that year ;
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“wealth tax” means the wealth tax charged and levied tinder the Inland Revenue Act.
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