13. Amendment of section 21H of the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 21H of the principal enactment is hereby amended as follows :—

Inland Revenue (Amendment)

(1)

in paragraph (b) of the proviso to subsection (1) of that section, by the substitution for the words “an associate company within the meaning of the

Companies Act, No. 17 of 1982.”, of the words “an associate company.”;

(2)

in the proviso to subsection (2) of that section, by the substitution for the words “the company commences to carry on commercial operations the exemption afforded”, of the words “the company commences to carry on commercial operations or more than twenty per centum of the total specific investment made in any year has been made in one or more associate companies of such venture capital company, the exemption afforded”; and

(3)

by the addition at the end of that section of the following new subsection :—

“(7) For the purposes of this section “associate company” means any company within a group of companies which includes a parent company and all its subsidiaries where the parent company has one or more subsidiaries and such subsidiaries are controlled by the parent company either by appointing a majority of the Board of Directors of such subsidiary or by holding more than one half in nominal value of the equity share capital of such subsidiary.”.

Read on from s 14