37. Every resident company shall deduct from the amount of any dividend which becomes payable to any non resident company during any year of assessment (in this section referred to as the " relevant dividend ") .-
| (a) if the relevant dividend consists of any part of the amount of a dividend received by such resident company from another resident company, not being part of the amount of a dividend exempt from income tax under this Act, income tax equivalent to five per centum of the amount of the relevant dividend increased by fifty per centum : |
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| (b) if the relevant dividend is not a dividend exempt from income tax under this Act, and does not consist of any part of the amount of a dividend received by such resident company from another resident company, income tax equivalent to five per centum of the amount of such relevant dividend ; and |
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| (c) if the relevant dividend is paid out of the amount of a dividend received by such resident company, being a dividend exempt from income tax under this Act, income tax equivalent to five per centum of the amount of such relevant dividend, |
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and the amount of the income tax which a resident company is, under this section, required to deduct shall be a debt due from such resident company to the Republic and shall be recoverable forthwith as such or may be assessed and charged upon such company in addition to any income tax otherwise payable by it. |
Sri Lanka Consolidated Acts