Inland Revenue Act 2006 · As enacted · Chapter XXXIII · Application of the Inland Revenue Act…
218. Application of the Inland Revenue Act…
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
The Inland Revenue Act, No. 38 of 2000 shall not apply to any income tax, for any year of assessment commencing on or after April 1, 2006.
Where the whole or any part of the profits and income of a person are exempt from income tax under any provisions of the Inland Revenue Act No.38 of 2000 for a period specified in those provisions and there remains on March 31, 2000, in relation to any person, an unexpired part of any such period, the whole or part, as the case may be, of the profits and income which would but for the provisions of subsection (1) have been exempt from income tax, the whole or part, as the case may be, of the profits and income of that person for that part of the period shall, notwithstanding anything in subsection (1) continue to be exempt from income tax as if such provisions continued to have application:
Provided however that, where a company approved by the
Minister for the purposes of section 22 DDD of the Inland
Revenue Act No.28 of 1979 had given notice in writing to the Commissioner-General before December 31, 2000 that such company had elected not to conform to the conditions subject to which approval was granted the profits and income from any undertaking of such company as is referred to in subsection (2) of that section for any year of assessment commencing on or after April 1, 2000 shall, notwithstanding the provisions of subsection (1) of that section be liable to income tax.
Where the Board of Investment of Sri Lanka has entered into an agreement with an enterprise under section 17 of the Board of Investment of Sri Lanka Law No.4 of 1978
prior to April 1, 2006 providing for the exemption of the whole or a part of the profits and income of that enterprise from income tax payable under the Inland Revenue Act No.28 of 1979 or under the Inland Revenue Act, No. 38 of 2000, as the case may be, for a specified period, and there remains on
March 31, 2006 an unexpired part of such specified period, the whole or part as the case may be, of the profits and income of that enterprise which but for the provisions of subsection (1) would have been exempt from income tax, shall be exempt from income tax payable under this Act, for such unexpired part of the specified period.
Where any provision of the Inland Revenue Act No.28
of 1979 or of the Inland Revenue Act, No. 38 of 2000 provides for the deduction of—
any loss in ascertaining the assessable income ;
any allowance in ascertaining the taxable income, of any person for any year of assessment, and there remains outstanding on March 31, 2006 any balance of such loss or allowance as the case may be, which, but for the provisions of subsection (1), would have been deductible from the assessable income or taxable income as the case may be, of that person in any year of assessment commencing on or after
April 1, 2000 such balance shall, notwithstanding anything in subsection, (1) but subject to any conditions specified in the provisions enabling such deductions, be deductible from the assessable or taxable income as the case may be, of that person in any year of assessment commencing on or after
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April 1, 2006, as if such provision continued to have application.
Where an individual pays on or after April 1, 2000 to the Government of Sri Lanka or to any institution referred to in paragraph (ee) of sub section (2) of section 31 of the Inland
Revenue Act No. 28 of 1979 any amount –
in the repayment of the capital of any loan ; or
as monthly payments of any rent purchase agreement, referred to in that paragraph, such amount shall, notwithstanding anything in subsection (1) but subject to the conditions specified in the aforesaid paragraph, be deductible from the assessable income of that individual in any year of assessment commencing on or after April 1, 2000, as if such
Act continues to be inforce.
The allowance for depreciation in respect of any capital asset acquired prior to April 1, 2000 or any qualified building constructed prior to April 1, 2000 shall, notwithstanding the non application referred to in subsection (1), be computed in accordance with the respective provisions of the Inland
Revenue Act No. 38 of 2000.
Any undertaking, company, public corporation, institution or any fund approved by the Minister or any accountant or any individual (for the purposes of the definition of authorised representative) or any provident or pension fund approved by the Commissioner-General under any provision of the Inland Revenue Act No. 28 of 1979 or of the Inland
Revenue Act, No. 38 of 2000, as the case may be, shall be deemed to have been and to be approved by the Minister or by the Commissioner-General as the case may be, under the respective provisions of this Act.