6. The following new sections are hereby inserted immediately after section 17A of the principal enactment and shall have effect as sections 17B, 17C, 17D, 17E, 17F and 17G of that enactment .
| 17B.
| | (1) The profits and income the meaning of paragraph (a) of section (3) ' (other than any profits and income from the sale of capital assets), of any Undertaking referred to in subsection (2), shall be exempt from income tax for a period of five years from the commencement of the year of assessment in which such undertaking commenced to carry on business. | | |
| | (2) The provisions of subsection (1) shall apply to any undertaking which-
| | | (a) commenced to carry on business on or after January 1, 1990; |
| (b) is, on the recommendation of the Minister in charge of the subject of Policy Planning and Implementation, approved by the Minister, to be an undertaking to which this section applies, by notice published in the Gazette on or before April 1, 1992 ; |
| (c) is engaged in purchasing for resale, of any agricultural or export oriented commodity, other than black tea in bulk, crepe rubber, sheet rubber, scrap rubber, coconut oil, desiccated coconut, copra, fresh coconuts, coconuts, coconut fibre or such other commodity as may be specified by the Minister by notice published in the Gazette having regard to the economic progress of Sri Lanka; and |
| (d) is not formed by the splitting up, re construction, or acquisition of any business which was previously in existence. |
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| | (3) For the purposes of subsection (2) of this section, the expression " any agricultural or export oriented commodity" means any"
| | | (i) agricultural produce; or |
| (ii) commodity manufactured from any agricultural produce ; or |
| (iii) manufactured article intended to be supplied to any exporter for export. |
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| 17C.
| | (1) .The profits and income within the meaning of paragraph (a) of section 3 (other than any profits and income from the sale of capital assets), of any company referred to in subsection (2), shall be exempt from income tax for a period of five years from the commencement of the year of assessment in which such company commenced to carry on business. | | |
| | (2) The provisions of subsection (1) apply to any company which"
| | | (a) commenced to carry on business on of after January 1, 1990 ; |
| (b) is, on the recommendation of the Minister in charge of the subject of Industries, approved by the Minister by notice published in the Gazette to or before April 1, 1992, as a company to which this section applies; and |
| (c) is engaged only in carrying on"
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| 17D.
| | (1) The profits and income within the meaning of paragraph (a) of section 3 profits and income of (other than any profits and income from the sale of capital assets) of any company refer- red to in subsection (2), shall be exempt from income tax for a period of five years from the commencement of the year of assessment in which such company commenced to carry on business. | | |
| | (2) The provisions of subsection (1) shall apply to any company which-
| | | (a) commenced to carry on business on or after January 1, 1990 ; |
| (b) is, on the recommendation of the Minister in charge of the subject of Industries, approved by the Minister by notice published in, the Gazette on or before April 1, 1992, as a company to which this section applies ; |
| (c) is engaged only in carrying on any undertaking which provides in any location, infra-structure facilities including floor space of not less than two thousand square feet each for the exclusive use of each of not less , than twenty enterprises for the production or manufacture, in that location, of goods or commodities: |
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| 17E.
| | (1) The profits and income within the meaning of paragraph (a) of section 3, (other than any profits and income from the sale of capital assets), of any off-shore company registered under Part VIII of the Companies Act, No. 17 of 1982 under- taking referred to in subsection (2), shall be exempt from income tax for a period of five years from the commencement of the year of assessment in which such company is so registered, if such profits and income (less any amount as the Commissioner-General considers reasonable expense) are remitted to Sri Lanka. | | |
| | (2) The provisions of subsection (1) shall apply to any undertaking which"
| | | (a) is approved by the Minister by notice published in the Gazette on or before April 1, 1992, as an undertaking to which this section applies ; and |
| (b) is engaged on-shore, in off-shore transactions relating to the provision of services in insurance or aviation or underwriting of loans or syndication of loans or international consultancy or in any combination of two or more of such services. |
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| 17F.
| | (1) The profits and income attributable to the expansion of any undertaking for the production or manufacture of goods or commodities and referred to in subsection (2), shall be exempt from income tax for a Period of five years reckoned from the relevant date. | | |
| | (2) The provisions of subsection (1) shall apply to any undertaking"
| | | (a) which, has incurred, within a period of twelve months from the relevant date, new capital expenditure of not less than five million rupees in' amount in expanding its productive ' capacity ; and |
| (b) which is, on the recommendation of . the Minister in charge of the subject of Industries approved by the Minister by notice published in the Gazette on or before April 1, 1992 to be an undertaking to which this section applies; and |
| (c) in respect of which the Commissioner- General is satisfied that the number of employees employed, on the last day of the year commencing .on the relevant date, in such undertaking and in respect of each of whom regular contributions to any provident fund approved by the Commissions: -General are being made, exceeds' the maximum number of employees, who were employed in that tinder-taking for an unbroken period of not less than twelve months immediately preceding the relevant date, of not less than twenty five; |
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| | (3) For the purposes of this section and in relation to any industrial undertaking"
| | | (a) the expression '' profits and income attributable to the expansion" in relation to any year of assessment means the excess of"
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| (b) the expression " relevant date ", means the first day of any calendar month not earlier than April 1990, and not later than March 1992, and selected by the person carrying on that under taking or where the undertaking is carried on by a partnership, by the precedent partners of that partner-ship, and notified to the Commissioner-General in writing not later than thirty days from the last. date of that month: |
| (c) the expression, "new capital expenditure" means expenditure incurred by the person who, or the partnership which carries on that undertaking in the purchase of new productive equipment, other than any land or any building) which is intended to increase its productive capacity: |
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| 17G.
| | (1) The profits and income within the meaning of paragraph (a) of section 3, of any undertaking for the transport of passengers, from the operation of any omni bus referred to in subsection (2), shall be exempt from income tax for a period of three years from the date of the first registration of that bus by the Registrar of Motor Vehicles. | | |
| | (2) The provisions of subsection (1) shall apply to any omni bus which"
| | | (b) is first registered by the Registrar of Motor Vehicles on or after January 1, 1990 but prior to April 1, 1992; and |
| (c) has a seating capacity for not less than thirty persons excluding the driver. |
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| | (3) For the purposes of this section the expression " the profits and income from any omnibus" in relation to any year of assessment and to any undertaking for the trans port of passengers, means the sum which bears to the gross receipts from the trans port of passengers by that omni bus the same proportion as the profits and income of that undertaking from the transport of passengers bears to the aggregate gross receipts of that undertaking from the transport of passengers by all the omni buses operated by that undertaking.'. | | |
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Sri Lanka Consolidated Acts