9. Amendment of section 40 of the principal enactment

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

Section 40 of the principal enactment is hereby amended by the repeal of paragraph (iii) of the proviso to that section and the substitution therefor of the following:-

“(iii) as regards movable property –

(a)

for any taxable period ending prior to January 1, 2014, where tax for more than four taxable periods is in default, the tax for four taxable periods only to be selected by the

Commissioner-General shall rank in priority to any lien or encumbrance created bona fide for value prior to the date of default of such tax; and

(b)

for any taxable period commencing on or after January 1, 2014, where the tax for more than taxable periods for five years is in default, the tax for taxable periods within five years only to be selected by the Commissioner-General, shall rank in priority to any lien or encumbrance created bona fide for value prior to the date of default of such tax.”.

Read on from s 10