Inland Revenue Act 2017 · As enacted · Part I
37. Cost of an asset
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
Subject to this Act, the cost of an asset of a person shall be the sum of –
expenditure incurred by the person in acquiring the asset including, where relevant, expenditure on construction, manufacture or production of the asset;
expenditure incurred by the person in altering, improving, maintaining or repairing the asset;
incidental expenditure incurred by the person in acquiring and realising the asset; and
income amounts referred to in subsection (2).
An income amount shall be –
an amount required by Division II of Chapter II to be directly included in calculating the person’s income or that is an exempt amount or final withholding payment of the person;
where the treatment in paragraph (a) results from the person acquiring the asset or another person incurring expenditure of the type mentioned in paragraph (b) or (c) of subsection (1) on behalf of the person.
The cost of an asset shall not include consumption expenditure, excluded expenditure and expenditure to the extent to which it is deducted in calculating a person’s income or included in the cost of another asset.
In this section, “incidental expenditure” incurred by a person in acquiring or realising an asset shall include –
advertising expenditure, transfer taxes, duties and other expenditure of transfer;
expenditure of establishing, preserving or defending ownership of the asset; and
remuneration for the services of an accountant, agent, auctioneer, broker, consultant, legal advisor, surveyor or valuer relating to expenditure referred to in paragraph (a) or (b).