6. The following section is inserted immediately after section 22D, and shall have effect as section 22DD of the principal enactment:
| 22DD.
| | (1) The profits and income of any public company
| | | (i) incorporated on or after April 1, 1983, with not less than ninety-five per centum of its capital contributed, in the form of money or otherwise, by the State, and any public corporation, or by any body corporate ; and |
| (ii) the primary object of which is to purchase and deal in shares of other public companies incorporated in Sri Lanka, |
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| | (2) The exemption referred to in subsection (1) shall cease, when the profits and income, exempt from income tax under that subsection and retained by any company amounts to a sum equal to twice the paid up capital of such company as at the thirty-first of March immediately following the date of incorporation of such company. | | |
| | (3) If any part of the profits and income retained by any company in any year of assessment and exempt from income tax under this section are distributed to the shareholders of such company within a period of five years from the end of that year of assessment, income tax shall be payable by the company for that year of assessment on the profits and income so distributed and such tax shall be assessable, payable and recoverable, notwithstanding anything to the contrary in any other provision of this Act. ". | | |
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Sri Lanka Consolidated Acts