As enacted

Contents

12. Amendment of section 32 of the principal enactment

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

Section 32 of the principal enactment is hereby amended as follows:—

(1)

in subsection (1) of that section, by the substitution for paragraph (c) of that subsection, of the following paragraph :—

“(c)

statutory income from interest arising or accruing to any individual, being interest from which income tax has been deducted under section 134 or section 135, as the case may be ;”;

(2)

in subsection (3) of that section, by the addition immediately after paragraph (c) of that subsection the following new paragraph :—

“(d)

interest accruing to such person from any

Rupee Denominated Treasury Bond, purchased out of funds drawn from any

Treasury Bond Investment External Rupee

Account.”; and

(3)

in subsection (4) of that section by the substitution for the words and figure from “in sub-paragraph (xvii) of that paragraph,”, to the end of that subsection, of the following words and figures :–

“in sub-paragraph (xvii) of that paragraph, shall not include :—

(a)

any interest from which tax has been deducted under section 133 or section 134; or

(b)

any dividend from which tax has been deducted under subsection (1) of section 65.”;

(4)

in subsection (5) of that section:—

(a)

by the substitution in paragraph (a) of that subsection for the words and figure “referred to in paragraph (x) of subsection (1)”, of the words and figures, “referred to in paragraph (x) or paragraph (y) of subsection (1)”;

(b)

in paragraph (b) of that subsection:—

(i)

by the substitution for the words “the amount of a loss incurred”, of the words

“the amount of a loss, other than a loss referred to in paragraph (c), incurred”;

(ii)

by the substitution for all the words and figures from “this section previously and any deemed loss,”, to the words

“forward to the next year of assessment and so on:”, of the following :–

“this section previously, and any excess treated as a loss under paragraph (ii) of the proviso to paragraph (a), upto a maximum limit of thirty five per centum of the excess of the total statutory income for that year, over the aggregate of :—

(i)

statutory income from interest and dividends referred to in subsection (1) ;

(ii)

any interst income referred to in subsection (2) ; and

(iii)

any reward, share of fine, any lottery winning and any interest on compensation payable, as referred to in subsection (3), for that year of assessment and any loss which cannot be deducted, may be carried forward to the next year of assessment and so on:”;

(iii)

by the substitution in paragraph (B) of the proviso to that paragraph, for the words “no loss can be carried forward”, of the words, “no loss shall be carried forward”;

(iv)

in paragraph (D) of the proviso to that paragraph:—

(a)

by the substitution for the words

“no loss can be deducted”, of the words “no loss shall be deducted”; and

(b)

by the substitution for all the words from “that in which the loss was incurred.”, to the end of that proviso, of the following words:—

“that in which the loss was incurred.

For the purposes of this paragraph, a change of ownership of a company is deemed to have occurred where more than one third of the issued share capital of the company is held at any time in the year of assessment for which the claim for deduction is made, either directly or through nominees, by persons who did not hold such capital at any time in the year of assessment in which the loss was incurred.

(c)

by the addition, at the end of paragraph (b) of that subsection, of the following new paragraph:—

“(c)

any loss incurred on or after April 1, 2007, in any business of life insurance, to the extent of any profits from such business included in such total statutory income; the balance, if any, of such loss after such deduction, shall be deemed to be a loss for the year of assessment immediately succeeding that year of assessment.

For the purpose of this paragraph, profits or loss from any business of life insurance shall be computed in accordance with the provisions of section 92.”; and

(5)

in subsection (6) of that section, by the substitution in paragraph (b) for the words and figures “provided for paragraph (b) of subsection (2).”, of the words and figures “provided for in paragraph (b) of subsection (5).”.

Read on from s 13