Inland Revenue Act (No. 38 of 2000)

Sri Lanka Consolidated Acts

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Inland Revenue Act (No. 38 of 2000) - Sect 61

Resident company entitled to deduct tax from any dividend

61.

(1) Every resident company other than a quoted public company, shall be entitled to deduct from the amount of any dividend payable to any shareholder other than any shareholder whose profit and income are exempt from income tax under paragraph (a) of subsection 8, in the form of money or an order to pay money out of the profits on which the taxable income of that company is computed for any year of assessment, income tax equal to fifteen per centum.

(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 selling 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) dividends received, in relation to which advance company tax has been paid at fifty four per centum ;

(iii) dividends received, m relation to which advance company tax has been paid at fifty per centum :

(iv) dividends received, in relation to which advance company tax has been paid at thirty three and one-third per centum ;

(v) dividends received, in relation to which advance company tax has been paid at twenty seven per centum :

(vi) dividends received, in relation to which advance company tax has been paid at twenty five per centum ;

(vii) dividends received, in relation to which advance company tax has been paid at seventeen per centum :

(viii) dividends received, in relation to which advance company tax has been paid at eleven per centum :

(ix) dividends received, in relation to which advance company tax has been paid at eight per centum ;

(x) dividends received, in relation to which advance company tax has been paid at five per centum ;

(xi) other dividends received ;

(xii) income exempt from income tax ;

(xiii) profits and income taxable at rates other than those specified in the Second Schedule to this Act : and

(xiv) other profits and income .

	(e) the advance company tax paid in relation to such part of the dividend paid out of the other profits and income referred to in sub-paragraph (xiii) of the foregoing paragraph as consists of a qualifying distribution :

	(f) advance company tax paid by other resident companies in relation to such part of that dividend as is paid out of a dividend referred to in sub-paragraph (ii). sub-paragraph (iii). sub-paragraph (iv), sub-paragraph (v). sub-paragraph (vi). sub-paragraph Mi). sub-paragraph (viii). sub-paragraph (ix) or sub-paragraph (x) of paragraph (d).

(3) Every company resident in Sri Lanka shall, for every year of assessment furnish to the Commissioner-General on or before the thirtieth day of November immediately succeeding the end of that year of assessment, a statement in such form as may be specified by the Commissioner-General setting out the particulars of"

	(a) advance company tax paid in that year of assessment ;

	(b) any payments made in that year of assessment in respect of tax under paragraph (a) subsection (1) of section 53 for and year of assessment ;

	(c) any payments made in that year of assessment in respect of tax under section 32H or section 32K or section 32M and section 32N of the Inland Revenue Act, No. 28 of 1979 for any year of assessment : and

	(d) any payments made in the year of assessment in respect of tax under section 45. section 47. section 49 and section 50 of this Act.

(4) Where the statement referred to in subsection (2) discloses that a share holder of a resident company received a dividend which included the amount of any dividend received the purposes of determining the statutory income of such shareholder for nay year of assessment be increased by seventeen and eleven-seventeenth per centum and be shall be entitled to deduct, from the tax payable by him, an amount equal to the said seventeen and eleven-seventeenth per centum :

(5) Where the assessable income of a person other than a company includes a dividend from a resident company in the from of money or of an order to pay money, he shall be entitled on production of a statement relating to such dividend made in accordance with subsection (2) to deduct from the tax payable by him the amount of tax shown on such statement ;

(6) 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 debenture 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 money.

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