65.
| (1) Every resident company, other than a unit trust or mutual fund approved by the Securities and Exchange Commission of Sri Lanka, shall deduct from the amount of gross dividend payable to any shareholder, other than-
| | (a) any company or body of persons which is exempt from income tax under paragraph (a) or paragraph (c) of section 7; | | |
| | (b) any unit trust or mutual fund approved by the Securities and Exchange Commission of Sri Lanka. | | |
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| (2) Every person who issues a warrant, cheque or other order drawn or made in payment of any dividend which becomes payable by a resident company during any year of assessment, shall annex thereto a statement in such form as may be specified by the Commissioner-General setting out -
| | (a) the gross amount which after deduction of income tax thereon, corresponds to the net amount actually paid; | | |
| | (b) the sum deducted as income tax; | | |
| | (c) the net amount actually paid; | | |
| | (d) the composition of the gross dividend indicating separately the amount paid out of-
| | | (i) exempt dividends received; |
| (ii) other dividends received ; |
| (iii) income exempt from or not chargeable with income tax; |
| (iv) other profits and income. |
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| (3) Where for any year of assessment the assessable income of a person other than a company includes a dividend from a resident company in the form of shares or debentures, he shall be entitled to deduct from the tax payable by him an amount equal to an amount which the company would have been entitled under subsection (1) to deduct as tax on such dividend, had such dividend been paid in the form of cash. |
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Sri Lanka Consolidated Acts