59. Taxation of unit trusts

Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk

(1)

For the purposes of this Act, every unit trust or every mutual fund that does not conduct an eligible investment business shall be deemed to be a company resident in Sri Lanka and the provisions of this Act relating to companies resident in Sri Lanka shall apply.

(2)

Without prejudice to the generality of the provisions of subsection (1) –

(a)

a “unit” in any unit trust or a mutual fund shall be deemed to be a share in that company;

(b)

a unit holder in any unit trust or mutual fund shall be deemed to be a shareholder in that company;

(c)

the income derived by or which arose from or accrued to the benefit of, the trustee of any unit trust or the custodian of any mutual fund from any property subject to that unit trust or mutual fund or from any business carried on by such trustee or such custodian for or on behalf of, that unit trust or mutual fund shall be deemed to be the income of that company;

(d)

any distribution, in any manner whatsoever, of the income of any unit trust or mutual fund to its unit holders shall be deemed to be a dividend distributed to the shareholders of that company;

and

(e)

the paid up value of any unit in any unit trust or mutual fund shall be deemed to be the paid up value of any share in that company.

(3)

Any sum appropriated or paid by way of remuneration to the manager or the trustee of any unit trust or to the manager or custodian of any mutual fund out of the funds of that unit trust or mutual fund shall, for the purposes of section 11 be deemed to be an expense incurred by that company in the production of its income.

(4)

Where this section applies, section 57 shall not apply.

Division IV: Companies

Read on from s 60

Part II

Read on from Part II

59. Taxation of unit trusts

Part II

Schedules