15. Amendment of section 24 of the principal enactment

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

Section 24 of the principal enactment as last amended by Act, No. 19 of 2003, is hereby further amended as follows

:—

(1)

in subsection (1) of that section —

(a)

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”;

(b)

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

“(o) (i)

one half of the excess of any expenditure in relation to any employee including an executive officer but excluding any director or senior executive officer; and

(ii)

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),

Inland Revenue (Amendment)

incurred by such person in providing any place of residence to any employee of such person or to the spouse, child or parent of such employee over the rental value of such place of residence which is included in the profits from employment of such employee within the meaning of section 4.

For the purposes of this paragraph

“expenditure” shall include rent, lease rent, rates, repairs and maintenance or other expenses directly and specifically related to such place of residence whether incurred directly or indirectly by the employer;”;

(c)

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

(d)

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

“(pp)

such part of the rental paid by him under any finance leasing agreement entered in to by him in any year of assessment commencing on or after April 1, 2004, in respect of—

(i)

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

Inland Revenue (Amendment)

paragraph (bb) of subsection (1)

of section 23, as in excess of one-fifth of the total rental payable under such agreement; and

(ii)

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;”;

(e)

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

(f)

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

“(s)

any expenditure or outgoing in relation to any asset provided by such person to any employee to be used in the residence of such employee;

(t)

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;

(u)

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.”.

Inland Revenue (Amendment)

(2)

in subsection (2) by the substitution for the words

“under paragraph (b) of”, of the words “under paragraph (b) or paragraph (bb) of ”.

Read on from s 16