As enacted

Contents

17. Amendment of section 29 of the principal enactment

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

Section 29 of the principal enactment as amended by Act, No. 12 of 2004, is hereby further amended as follows :—

(1)

in subsection (1A) of that section :-

(a)

by the substitution in paragraph (a) of that subsection, for the words and figures “section 122A and section 122B ; and”, of the words and figures “section 122A and section 122B;” ;

(b)

by the substitution in paragraph (b) of that subsection, for the words “through any other company,”, of the words “through any other company ; and” ; and

(c)

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

“(c)

statutory income from interest arising or accruing to any individual in respect of a secondary market transaction on any Security or Treasury Bond issued under the Registered Stock and

Securities Ordinance (Chapter 420), or

Treasury Bill issued under Treasury

Bills Ordinance (Chapter 417), or

Central Bank Securities issued under the Monitory Law Act (Chapter 422)

and from the interest on which tax under section 122A has been deducted from a primary dealer,” ;

(2)

in subsection (1B) of that section, by the substitution for all the words and figures from “for the purposes of subsections (1A) and (1B)”, to the end of that paragraph, of the following words and figures :-

“for the purposes of subsection (1A) and (1B) of this section —

“interest income” means the proportionate amount of interest or discount allowed by the issuer of any security or instrument referred to in sub-paragraph (b) of subsection (1B) of this section, in proportion to the holding period of such security or other instrument by any holder over the period of maturity of such security or other instrument ;

“primary market transaction” means the purchase of any Security or Treasury Bond issued under the Registered Stock and Securities

Ordinance (Chapter 420), or Treasury Bill issued under the Local Treasury Bills

Ordinance (Chapter 417), or Central Bank

Security issued under the Monetary Law Act,

(Chapter 422) at the time of the original issue of such Security, Bill or Bond or by any primary dealer subject to any discount or payment of interest by the issuer ; and

“secondary market transaction” means the sale of a security or other instruments referred to in sub-paragraph (b) of subsection (1B) of this section or re-purchase or reverse re-purchase of such security or other instruments after the original issue of such security or holding of any such security or instrument for a period longer than one day from the date of acquisition, by any primary dealer who has acquired such security or other instruments.” ;

(3)

in subsection (2) of that section :—

(a)

by the repeal of paragraph (i) of the definition of “interest” appearing in sub-paragraph (iv)

of paragraph (aaa) of that subsection and the substitution therefor of the following paragraph :—

“(i)

for the construction or purchase of any building or for the purchase of any site for the construction of any building on or after April 1, 2004 ;” ;

(b)

in paragraph (f) of that subsection :—

(i)

by the substitution for all the words from

“of thirty five per centum of the total statutory income” to the words “and so on :”, of the following words and figures :—

“of thirty five per centum of the excess of the total statutory income for that year over the aggregate of —

(a)

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

(b)

any interest income referred to in subsection (1B) ; and

(c)

any reward, a share of fine, any lottery winning and any interest on compensation payable referred to in subsection (1C), for that year and any loss which cannot be deducted may be carried forward to the next year of assessment and so on:” ;

(ii)

in item (iii) of the proviso to that paragraph, by the substitution for the words “deducted from income arising ;”;

of the words “deducted from income arising subsequent to such declaration of insolvency ;” ; and

(4)

in subsection (2A) of that section, by the substitution for the words and figures “The provisions of paragraphs (b), (c), (d) and (e) of subsection (2), shall”, of the words and figures, “The provisions of paragraphs (b), (c), (d) and (e) of subsection (2), or subsection (4), or sub-paragraphs (i) and (iii) of paragraph (d) of subsection (5), or subsection (6), (7) and (8) shall”.

Read on from s 18