10. Amendment of section 34 of the principal enactment

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

Section 34 of the principal enactment as last amended by Act, No. 8 of 2014 is hereby further amended as follows:-

(1)

in subsection (2) of that section: -

(a)

in paragraph (b) of that subsection, by the addition immediately after sub-paragraph (ix), of the following new sub-paragraph:-

“(x) National Kidney Fund established under the National Kidney

Foundation of

Sri

Lanka

(Incorporation) Act, No. 34 of 2006;”;

(b)

in the paragraph (s) of that subsection, by the substitution for all the words and figures from “investment of not less than”

to the words and figures “business on or after April 1, 2011:”, of the words and figures “investment of not less than fifty million rupees in the acquisition of fixed assets made by any person on or after

April 1, 2011 but before April 1, 2014 in the expansion of any undertaking which would have been qualified for exemption under section 16C or section 17A had such undertaking commenced to carry on business on or after April 1, 2011:”;

(c)

in paragraph (u) of that subsection, by the substitution for all the words and figures from “ after April 1, 2013, then-” to the words

“whichever is lower;”, of the following words and figures:-

“after April 1, 2013, then-

(i)

such part of profits in excess of five hundred thousand rupees ;

(ii)

for any year of assessment ended prior to April 1, 2015, one hundred thousand rupees and for any year of assessment commencing on or after April 1, 2015, two hundred and fifty thousand rupees, whichever is lower;”;

(d)

by the substitution for paragraph (v) of that subsection, of the following new paragraph:-

“(v)

such part of official emoluments arising in Sri Lanka to any individual who is not a citizen of

Sri Lanka and not resident in Sri

Lanka–

(i)

for any year of assessment commencing on or after April 1, 2013, but prior to April 1, 2015

does not exceed one hundred thousand rupees; or

(ii)

for any year of assessment commencing on or after April 1, 2015

does not exceed two hundred and fifty thousand rupees;”;

(e)

by the repeal of paragraph (x) of that subsection and the substitution therefor, of the following new paragraph:-

“(x)

any expenditure incurred by any bank, any financial institution or any leasing company, by way of cost of acquisition or merger of any other bank, any other financial institution or any other leasing company, where such cost is ascertained by considering all the facts on case by case basis in accordance with the guidelines issued by the Central Bank of Sri

Lanka, in the manner specified by the Commissioner General for that purpose.”; and

(2)

in subsection (4) of that section by the insertion immediately after sub-paragraph (ix) of paragraph (b) of that subsection, of the following new sub-paragraph:-

“(x)

in respect of any qualifying payment referred to in paragraph (x) of subsection (2), on the expenditure incurred by any bank or other company referred to in that paragraph in any year of assessment shall not exceed one third of the assessable income or three hundred million rupees whichever is higher. The balance, if any, not deductible in the same year of assessment shall be carried forward and be deductible from the assessable income of such bank or other company for the next succeeding year of assessment and so on subject to the same conditions.”.

Read on from s 11