85. Where a company carries on an undertaking which is referred to in paragraph (v) or paragraph (vi) of subsection (1) of section 6 of the Inland Revenue Act, No. 4 of 1963, and which has been approved thereunder by the Minister prior to April 1, 1976, such company shall in respect of its profits and income from that undertaking for the period of fifteen years immediately succeeding the period of five years for which the profits and income of that undertaking are exempt from income tax under the aforesaid provisions, be entitled to a deduction from the income tax payable by that company of a sum equal to fifty per centum of the specified sum. For the purposes of this section, the specified sum shall-
| (a) in the case of a resident company, be a sum which bears to the income tax payable by that company for any year of assessment under paragraph (a) of subsection (1) of section 33 after the deduction of any relief granted under section 82 or section 83, the same proportion as the profits and income of that undertaking bears to the profits and income of that company for that year of assessment, and |
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| (b) in the case of a non-resident company, be a sum which bears to the income tax payable by that company for any year of assessment under para- graph (a) of subsection (1) of section 34 (including such part of that tax as is computed under that section at the additional rate of 5 per centum) after the deduction of any relief granted under section 82 or section 83, the same proportion as the profits and income of that undertaking bears to the profits and income of that company for that year of assessment. |
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Sri Lanka Consolidated Acts