Finance (Amendment) Act 2005 · As enacted · Part I · Amendment of Part I of the Finance Act…
3. Amendment of section 3 of the principal enactment
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
Section 3 of the principal enactment is hereby amended as follows :—
in subsection (1) of that section by the substitution for the words “any person or partnership for any relevant year of assessment may be deducted from the relevant income tax payable by that person or partnership for that relevant year” of the words “any person for any relevant year of assessment, shall be deducted from the relevant income tax if any, payable by that person for that relevant year” ;
by the insertion immediately after subsection (1) of that section, of the following new subsection, which shall have effect as subsection (1A) thereof :—
“(1A) The amount of any service charge paid by any partnership for any relevant year of assessment shall be apportioned among the partners of such partnership in the ratio in which such partners share the profits or lossess of such partnership for that relevant year of assessment : the amount of the service charge so apportioned to any partner, shall be deducted from the relevant income tax payable by such partner for such relevant year of assessment
(hereinafter referred to as the “first - mentioned relevant year of assessment”).”;
in subsection (2) of that section by the substitution for the words “The balance, if any, of such service charge after its deduction in accordance with subsection (1) shall be deducted from the relevant income tax payable by such person or partnership for the relevant year” of the words “The balance, if any, of such service charge paid by any person after its deduction in accordance with subsection (1) shall be deducted from the relevant income tax payable by such person for that relevant year”. ;
by the insertion immediately after subsection (2) of that section, of the following new subsection, which shall have effect as subsection (2A) thereof :—
“(2A) The balance, if any, of any service charge apportioned to any partner in accordance with subsection (1A), after its deduction in accordance with subsection (1A) shall be deducted from the relevant income tax payable by such partner for the relevant year of assessment immediately succeeding the first –
mentioned relevant year of assessment (hereinafter referred to as the “first succeeding relevant year of assessment”).”;
in subsection (3) of that section by the substitution for the words “The residue, if any, of the balance of such service charge after its deduction in accordance with subsection (2), shall be deducted from the relevant income tax payable for the relevant year” of the words
“The residue, if any, of the balance of such service charge or of the portion of such service charge, as the case may be, after its deduction in accordance with the provisions of either subsection (2) or subsection (2A), shall be deducted from the relevant income tax payable by such person or such partner of such partnership as the case may be, for the relevant year” ;
by the repeal of subsection (5) of the principal enactment and the substitution therefor of the following subsection :—
“(5) For the purposes of this section and in relation to any relevant year of assessment, the expression—
“attributable to the liable turnover” in relation to any part of the share of the divisible profits of any partner of any partnership means the sum which bears to the share of the divisible profits of such partner from such partnership for such relevant year of assessment the same proportion as the liable turnover of such partnership for such relevant year of assessment bears to the turnover of such partnership for such relevant year of assessment ;
“relevant income tax payable” in relation to—
any person in so far as such person is not a partner of any partnership, means the sum which bears to the aggregate statutory income of that person for that relevant year of assessment, from every trade, business, profession or vocation carried on or exercised by that person, other than any trade, business, (not being any trade or business which deals in the wholesale or retail of such goods, not manufactured or produced by such person), profession or vocation, the commercial operations of which has commenced, whether by such person or by any other person or partnership, on a date which falls within the period of thirty six months immediately preceding the first day of that relevant year of assessment, the same proportion as the total income tax payable by such person for that relevant year of assessment bears to the total statutory income of that person for that relevant year of assessment; and
any person, in so far as such person is a partner of any partnership, means the sum which bears to such part of the share of the divisible profits of such person from such partnership as is attributable to the liable turnover of every trade, business, profession or vocation carried on or exercised by such partnership, the same proportion as the total income tax payable by such person for that relevant year of assessment bears to the total statutory income of that person for that relevant year of assessment;
“total income tax payble” in relation to any person means the sum ascertained by the application of the income tax rate as is specified in the appropriate Schedule to the Inland Revenue Act, to the taxable income of such person for that relevant year of assessment”; and
by the substitution for the marginal note to that section of the following :—
“Service Charge to be deducted from the relevant income tax”.
Part II
Part III