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srilawsby aturio
As enacted
Contents

Part I

40. Liabilities

Official English translation. The Sinhala text prevails.

(1)

The costs of and consideration received for a liability of a person shall be determined in accordance with sections 37 and 38 as though –

(a)

a reference to an asset were a reference to a liability;

(b)

expenditure incurred in realising the liability is included in the costs of the liability; and

(c)

amounts derived in respect of incurring the liability are included in the consideration received for the liability.

(2)

Subject to this Act, a person who owes a liability shall be treated as realising the liability –

(a)

when the person ceases to owe the liability, including when the liability is transferred, satisfied, cancelled, released or expired;

(b)

in the case of a liability of a person who ceases to exist, including by reason of the death of an individual, immediately before the person ceases to exist; and

(c)

in the circumstances referred to in section 70

(change of residence).

(3)

Subject to any regulations, the provisions of Division

II shall apply, with any necessary adaptations, to liabilities in a manner similar to that in which they apply to assets.

Read on from s 41

Part II

Read on from Part II

Schedules