Inland Revenue (Amendment) Act 2004

winnings from a lottery, betting or gambling;

by the substitution in sub-paragraph (LXXIV), for the words “Investment Bank;”, of the words

by the insertion immediately after sub-paragraph (LXXIV), of the following new sub-paragraphs :—

Management

the Sri Lanka Institute of Taxation incorporated by the Sri Lanka

in the proviso to that paragraph by the substitution for the word and figure “and

”, of the words and figures “(LXXIV)

The provisions of paragraph (b), (c), (d), or (e) of subsection (1) shall not apply to any dividend paid on or after April 1,

The provisions of paragraph (f) of subsection (1), shall not apply to any dividend paid on or after April 1, 2004, by any company referred to in that paragraph, which qualified for an exemption on to after November 6,

for any year of assessment commencing on or after April 1, 2004, any profit derived by or accruing to any person other than a unit trust or mutual fund from the sale of any share, including a right to any share or a bonus share or a warrant where such disposal has taken place after two years from the date of acquisition :

the year of assessment in which the business that is acquired commences to make profits ; or

any year of assessment not later than two years reckoned from the date on which the business that is acquired commenced commercial operations, whichever is earlier.”.

acquiring the ownership of the enterprise as an owner ;

acquiring not less than fifty one per centum of the ownership of the enterprise with management rights or as partner or a joint venture partner ; or

acquiring the business (including the assets, liabilities and employees) other than by way of acquiring the shares of such enterprise, by way of a Deed.”.

by the substitution in paragraph (a) of that subsection, for the words “by such person;”, of the words and figures “by such person, for any year of assessment commencing on or before April 1, 2003;”;

by the substitution in paragraph (b) of that subsection, for the words “an allowance for depreciation”, of the words and figures “for any year of assessment commencing on or before

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

information technology equipments and calculating equipment including accessories acquired or assembled by such person and software, acquired by such person, at the rate of twenty five per centum per annum on the cost of acquisition or assembling of such equipments, as the case may be ;

any motor vehicle or furniture acquired by such person, at the rate of twenty per centum per annum, on the cost of acquisition ;

any other machinery or equipment not referred to in sub paragraphs (i) and (ii)

any intangible assets (other than good-will) acquired by such person, at the rate of ten per centum per annum, on the cost of acquisition ;

any bridge, railway, reservoir, electricity or water distribution line and toll roads constructed by such person or acquired from a person who has constructed such assets during the period of such ownership, at the rate of six and two third per centum per annum, on the cost of construction or cost of acquisition as the case may be ;

any qualified building or any unit of a condominium property acquired which is approved by the Urban Development

by the substitution in paragraph (cc) of that subsection, for the words and figures “on or after April 1, 2002”, of the words and figures

by the substitution in paragraph (d) of that subsection, for the words “acquisition of such computer software:”, of the words and figures

by the insertion immediately after the proviso to paragraph (f) of that subsection, the following new proviso :—

by the substitution :—

in paragraph (g) of that subsection, for the words “sum equal to the bad debts”, of the words “sum equal to the bad debts representing the supply of goods or services by such person on credit”; and

in the proviso to paragraph (g) of that subsection, by the substitution for the words “vocation or employment ;”, of the words “vocation or employment and for

by the substitution for sub-paragraph (i) of the proviso to paragraph (m) of that subsection, of the following sub-paragraphs :—

in respect of expenses incurred in relation to a vehicle, where more than one vehicle is provided to any employee of such person or to any non-executive director or to any other individual who is not an employee but rendering services in the trade, business profession or vocation carried on by such person, if such vehicle is not the first vehicle provided to such employee, or non-executive director or such other individual, as the case may be;

in respect of expenses incurred in relation to a vehicle where such vehicle is provided to any other person who is not an employee of such person and who does not render any services to the trade, business, profession or vocation carried on by such person;

in respect of expenses incurred in relation to the reimbursement of any expenditure on a vehicle belonging to an employee of such person who has been allowed by the employer to claim such expenses, unless the value of benefit of using such vehicle for non-business purposes by such employee as determined by the

by the substitution in paragraph (r) of that subsection for the words “of the lump sum payment”, of the words “of the lump sum payment, which not being an advance payment”, ; and

by the substitution in sub-paragraph (i) of paragraph (a) of that subsection, for the words

by the substitution in paragraph (b) of that subsection, for the words “utensils, articles or equipment”, of the words “utensils, articles or equipment or any bridge, railway, reservoir electricity or water distribution lines, toll roads”;

by the substitution in sup-paragraph (iii) of paragraph (f) for the words “to a company referred to in paragraph (xv) of subsection (1)

by the insertion immediately after sub-paragraph (iv) of paragraph (f), of the following new sub-paragraph :—

where any person has obtained an asset under a lease agreement and the relevant lease rentals have been allowed to such person as expenditure incurred in any trade, business, profession or vocation either fully or partly, the receipts from disposal of such asset, less any cost of acquisition other than lease rentals paid on such asset by such person after acquiring it directly or through a nominee, shall be treated as a receipt from such trade, business, profession or vocation of such lessee ;

where any lessee has acquired any asset used by him in any trade, business, profession or vocation under a lease agreement, such acquisition shall not be considered as an acquisition which qualifies for any depreciation allowance under this section, and such asset shall be treated as an asset on which depreciation has been granted to such lessee to the extent of the repayment of the capital value of such asset under such lease agreement by such lessee.”.

by the substitution in paragraph (j) of that subsection for the words “is not treated as income”, of the words “is not treated as a receipt from such trade, business, profession or vocation”;

by the substitution for paragraph (o) of that subsection, of the following paragraph :—

three fourths of the excess of any expenditure in relation to any employee who is a director or senior executive officer (being an officer receiving a salary of not less than rupees fifty thousand per month),

by the substitution in paragraph (p) of that subsection for the words “in any year of assessment”, of the words “in any year of assessment commencing on or before April 01, 2003”; and

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

any motor vehicle, furniture, plant, machinery or equipment other than information technology equipment and calculating equipment including accessories and computer software and other computing or calculating machine referred to in

any information technology equipment and calculating equipment including accessories and computer software as referred to in paragraph (bb) of subsection (1) of section 23, as in excess of one-fourth of the total rental payable under such agreement;”;

by the substitution in paragraph (r) of that subsection for the words “from the sale of capital assets,” of the words “from the sale of capital assets;”; and

by the addition immediately after paragraph (r) of that subsection, the following new paragraphs :—

any expenditure or outgoing in relation to any movable or immovable property given by such person to any employee at a price less than market value at the time of giving such property;

any expenditure or outgoing in relation to any loan, other advance or credit granted to any employee which is subsequently written off as a bad debt by such person.”.