As enacted

Contents

15. Amendment of section 23 of the principal enactment

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

Section 23 of the principal enactment is hereby amended in subsection (1) of that section as follows :—

(1)

in sub-paragraph (i) of paragraph (b) of that subsection by the substitution, for the words “or subparagraph (iii)”, of the words “or sub-paragraph (iii) or (vi)”;

(2)

by the insertion immediately after sub-paragraph (v) of paragraph (b) of that subsection of the following sub-paragraph :—

“(vi)

any computer hardware acquired by such person on or after April 1, 2002 and arising out of its use in any trade, business, profession or vocation carried on or exercised by him at the rate of one hundred per centum on its cost of acquisition;”;

(3)

in paragraph (c) of that subsection by the substitution for all the words from “a sum equal to one tenth” to

“business carried on by him” of the following :—

“(c)

A sum equal to —

(i)

one-tenth of any payment made for any year of assessment commencing prior to

April 1, 2002;

“The profits and income of a person making a declaration under section 2 of the

Inland

Revenue

(Special

Provisions)

Act, No. 7 of 2002 shall not be exempted from income tax.

Inland Revenue (Amendment)

(ii)

a sum equal to one-fourth of any payment made in any year of assessment commencing on or after April 1, 2002, by such person as consideration for obtaining a licence, in his favour, of any manufacturing process used by such person in any trade or business carried on by such person;”;

(4)

by the insertion, immediately after paragraph (c) of that subsection, of the following paragraph :—

“(cc)

a sum equal to one-fourth of any payment made by such person in any year of assessment commencing on or after April 1, 2002 in the acquisition of any intangible asset such as a patent, copyright or trade mark (other than any goodwill) used by him in any trade or business carried on by him :

Provided that no deduction shall be allowed to any person under this paragraph in respect of any such payment if the total of the sum deducted in the preceding years of assessment is equal to the amount of such payment ; ”;

(5)

in paragraph (d) of that subsection , by the substitution for all the words from “such allowance being” to “computer software”, of the following :—

“such allowance being :—

(i)

in the case of the year of assessment commencing prior to April 1, 2002, an amount equal to fifty per centum ;

(ii)

in the case of every year of assessment commencing on or after April 1, 2002, an amount equal to one hundred per centum, of the cost of acquisition of such computer software,”;

Inland Revenue (Amendment)

(6)

by the repeal of the proviso to paragraph (f) of that subsection and the substitution of the following proviso therefor :—

“Provided that the sum deductible under this sub-paragraph shall, in the case of a company carrying on the business of letting premises for commercial purposes —

(i)

for any year of assessment commencing prior to April 1, 2002, not exceed ten per centum ;

(ii)

for any year of assessment commencing on or after April 1, 2002, insofar as it relates to the repairs of such premises, not exceed twenty-five per centum, of the gross rent receivable by such company for such premises;”;

(7)

in paragraph (k) of that subsection by the substitution for the words “the expenditure incurred” of the words and figures “the expenditure incurred in any year of assessment commencing on or after April 1, 2000

but prior to April 1, 2002”;

(8)

by the insertion, immediately after paragraph (k) of that subsection of the following paragraph :—

“(kk)

the expenditure including capital expenditure incurred in any year of assessment commencing on or after April 1, 2002 by such person in carrying on any scientific, industrial, agricultural or any other research for the upgrading of any trade or business carried on by such person;”;

(9)

in sub-paragraph (iii) of paragraph (t) of that subsection by the substitution for the words

“performance of such trade or business.”, of the following :—

“performance of such trade or business :

Inland Revenue (Amendment)

Provided that any expenditure incurred in any year of assessment commencing on or after April 1,

2002 by such person in training shall be deductible, irrespective of the length of the period of training.”.

Read on from s 16