As enacted

Contents

29. Amendment of section 76 of the

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Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 76 of the principal enactment is hereby amended as follows :—

(1)

by the insertion immediately after the definition of

“Assessor” of the following definition :— .

“associated persons” means—

(a)

any two or more companies which consist of the same shareholders or are managed and controlled by the same Directors; or

(b)

any company and any shareholder, where such shareholder or the spouse or child of such shareholder or any trustee of such shareholder or any trustee of the spouse or the child of such shareholder hold jointly or severally twenty five per centum or more of the paid up capital or twenty five per centum or more of the nominal value of the allotted shares of that company; or

(c)

any two individuals one of whom is the spouse or child of the other or is a trustee for such spouse or child; or

(d)

a partnership and an individual where such individual is related to any partner of such partnership;

(e)

ajoint venture and any person who is related to a member of such joint venture; or

(f)

any two persons one of whom is a trustee for the other;

(g)

any two individuals related to each other;

(2)

by the repeal of the definitions respectively of “open market value” and “taxable period” and the substitution therefor, of the following definitions :—

“open market value” in relation to the value of a supply of goods or services at any date means the consideration in money less any tax charged under this Act, excluding the national security levy payable under the National Security Levy Act, No. 52 of 1991, which a similar supply would generally fetch, if supplied in similar circumstances at that date in

Sri Lanka, being a supply freely offered and made between persons who are not associated persons;

“taxable period” means—

(a)

a period of one month—

(i)

where the value of taxable supplies of any person has exceeded rupees thirty million during the preceding twelve months; or

Act, No. I] of 1998

(ii)

where the value of taxable supplies of any person for the period of the succeeding twelve months is estimated to exceed rupees thirty million; or

(iii)

where the total turn over of any person under the Turn Over Tax Act, No. 69 of 1981 has exceeded rupees thirty million during four consecutive quarters ending six months immediately preceding the appointed date;

(iv)

where any person makes zero rated supplies;

(v)

where any person has entered into an agreement with the Board of Investment of Sri Lanka referred to in items

(XXVID)

or (XXVIID of the Schedule;

(vi)

where any person has commenced a business and undertakes to comply with the requirements of subsection (6) of section 22;

(b)

a period of three months commencing respectively on the first day of January, the first day of April, the first day of July and the first day of October of each year in respect of a registered person who is not referred to in paragraph (a) or a person who makes zero rated supplies and who opts to submit quarterly return on approval by the

Commissioner-General;”.

Amendment of the

Report

Read on from s 30