17.
| (1) In determining the value of the estate of a deceased person, allowance shall be made, subject as herein after provided, for reasonable funeral expenses and for debts and encumbrances incurred or created by the deceased which having been charged upon any property forming part of the estate prior to its acquisition by the deceased. whether by way of inheritances gifts transfer, purchase or otherwise, continued to be so charged at the date of death, but an allowance shall not be made -
| | (a) for debts incurred by the deceased, or encumbrances created by the deceased, unless such debts or encumbrances were incurred or created bona fide for full consideration in money or money's worth wholly for the deceased s own use and benefit and take effect out of his interest; or | | |
| | (b) for any debt in respect whereof there is a right to reimbursement from any other estate or person, unless such reimbursement can not be obtained; or | | |
| | (c) more than once for the same debt or encumbrance charged upon different portions of the estate ; or | | |
| | (d) for any debts incurred outside Sri Lanka other than a debt contracted to be paid in Sri Lanka or secured, on property situated in Sri Lanka), except to the extent of the amount of the value of the property if any, of the deceased situated outside Sri Lanka and forming part of the estate of the deceased. and any debt or encumbrance for which an allowance is made shall be deducted from, the value of the property liable thereto. | | |
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| (2)In determining the value of the estate of a deceased person, allowance shall also be made
| | (a) for any income tax, gifts tax, wealth tax or other like tax, which is payable, under any written law in force in Sri Lanka, by any executor, administrator or other person administering the estate of the de-ceased, in respect of the profits or income or gifts or wealth of the deceased for any period prior to the date of his death; and | | |
| | (b) for any tax which is payable under any written law in force in any other country in respect of the pro-fits and income for any period of the deceased for any period prior to his death arising or derived from any property forming part of his estate. | | |
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Sri Lanka Consolidated Acts