28. Section 163 of the principal enactment is hereby amended by the substitution for the definition of " qualifying distribution " of the following definition :" " qualifying distribution " means"
| (A) for any year of assessment commencing on or after April 1, 1988 but prior to April 1, 1994, means the whole or part of any gross dividend distributed by a resident company to a shareholder, in the form of money or of an order to pay money, cut of such profits of the company which, if taxable for that year of assessment would be taxed at the appropriate rate specified in the Second Schedule to this Act, as the rate applicable to companies of that class, but does not include any dividend distributed out of"
| | (i) profits or income which accrued or arose, to such company, prior to April 1. 1988 ; | | |
| | (ii) its exempt income, and | | |
| | (iii) any income from dividend received by such company, | | |
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| (B) for any year of assessment commencing on or after April 1, 1994, means the whole or a part of any gross dividend distributed by a resident company to a shareholder, in the form of money or of an order to pay money, out of such profits of the company being profits which
| | "(i) if taxable for that year of assessment, would be taxed at the appropriate rates specified in the Second Schedule to this Act, as the rate applicable to companies of that class, or | | |
| | (ii) are taxed in accordance with the provisions of section 32F, or of section 32H or of section 32K. | | |
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| (a) distributed out of"
| | (i) profits or income which accrued or arose to such company prior to April 1, 1988, | | |
| | | (iii) any income from dividend received by such company ; or | | |
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| (b) paid to any person whose profits and income are exempt from income tax under paragraph (a) of section 8. ". |
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Sri Lanka Consolidated Acts