79.
| (1) The profits of a company, whether mutual or Proprietory from the business of life insurance shall be the investment income of the Life Insurance Fund less the management expenses (Including commission) attributable to that business : |
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| (2) The profits of a non-resident company, whether mutual or proprietory, from the business of insurance (other than life insurance) shall be ascertained by taking the gross premiums from insurance business in Sri Lanka (less any premiums returned to the insured and premiums paid on reinsurance) and deducting therefrom a reserve for unexpired risks at the percentage adopted by the company in relation to its operations as a whole for such risks at the end of the period for which the profits are being ascertained, and adding thereto a reserve similarly calculated for unexpired risks outstanding at the commencement of such period, and from the net amount so arrived at, deducting the actual losses (less the amount recovered in respect thereof under reinsurance), the agency expenses in Sri Lanka and a fair proportion of the expenses of the head office of the company, due account being taken in each case by set-off against such expenses, of any income or profits other than premises. |
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| (3) Where the Commissioner-General is satisfied that by reason of the limited extent of the business transacted in Sri Lanka by a non-resident insurance company it would be unreasonable to require the company to furnish the particulars necessary for the application of subsections (1) and (2) he may, notwithstanding the provisions of those subsections, permit the profits of the company to be ascertained by reference to such proportion of the total profits and income of the company as is equal to the proportion which its premiums from insurance business in Sri Lanka bears to its total premiums, or on any other basis which appears to him to be equitable in all the circumstances of the case. |
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| (4) In this section the expression " investment income of the Life Insurance Fund " means -
| | (a) in the case of a company whose sole business is life insurance, the whole of its income from investment ; and | | |
| | (b) in the case of any other company, such part of its income from investment as is fairly attributable to its life insurance business, | | |
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| (5) Where a dividend is paid by any resident company to any company carrying on the business of life insurance and either -
| | (a) a deduction has been made under section 38 (1) in respect of the dividend ; or | | |
| | (b) that dividend consists of any part of the amount of a dividend received by such resident company from another resident company, | | |
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Sri Lanka Consolidated Acts