3.
| (1) Where any dividend paid by a company to its shareholders or any part of such dividend is out of the profits and income which under section 2 are exempt from income tax, then, such dividend or part thereof shall be exempt from income tax, and the provisions of sections 25 (1) (b) and 27 (1) of the Inland Revenue Act, No. 4 of 1963, shall not apply to such-dividend or part thereof. |
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| (2) Every person who issues a warrant, cheque or other order drawn or made in payment of any dividend referred to in subsection (1) shall annex thereto a statement in writing specifying the amount of the profits and income exempt from income tax under section 2 which is included in that dividend. |
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Sri Lanka Consolidated Acts