43.
| (1) The value of any property (other than cash) which constitutes a gift shall, subject as hereafter in this section provided, be estimated to be the market value of the gift on the date on which the gift was made. |
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| (2) Any gift which is subject to any reservation in favour of the donor or any other person shall be valued as if that gift had passed to the donee without that reservation. |
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| (3) Where the gift consists of shares (not being preference shares) in any company which by its articles restricts the right to transfer its shares, or which is a company in which more than half of the total shares issued is held by not more than five persons, their wives or minor children, either directly or through nominees, and the Commissioner is satisfied that the shares have not, within the period of twelve months immediately preceding the date on which the gift is made, been quoted in the official list of a recognized stock exchange in the United Kingdom or in a list of a like nature issued in Ceylon by any association of brokers approved by the Secretary to the Treasury for the purposes of this section, the value of such shares shall, if the Commissioner so directs, be ascertained not in the manner provided by sub section (1) but by reference to the market value of all the assets of the company as a going concern, including goodwill, on the date on which the gift is made after deducting therefrom-
| | (i) the par or redemption value, whichever is the greater, of any debentures, debenture stock and preference shares of the company; | | |
| | (ii) all debts of the company incurred or created bona fide for consideration in money or money's worth; | | |
| | (iii) such sum as on a just and fair computation represents any future or contingent liabilities of the company or any liabilities thereof which are uncertain in amount; and | | |
| | (iv) the amount of any reserve fund separately invested which is bona fide intended to be applied in payment of pensions to employees or otherwise for the benefit of them or their dependants or relatives, and in no other manner. | | |
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| (4) Where the value of any property (other than property to which subsection (3) applies) cannot be estimated under subsection (1) because it is not saleable in the open market, its value shall be determined in the prescribed manner. |
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Sri Lanka Consolidated Acts