45.*
| (1) Notwithstanding anything in the preceding provisions of this Act, any husband or wife may give notice in writing to the Commissioner before the first day of June in any year of assessment, or at any time before an assessment is made in any year of assessment, requiring that the income tax and wealth tax for that year shall be assessed, charged and recovered separately on the income or net wealth of the husband and on the income and net wealth of the wife as if they were not married; and all the provisions of this Act shall thereupon apply to each of them accordingly: |
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| (2) Where income tax is assessed separately on the income of the husband and on the income of the wife as a result of a notice under subsection (1), the incomes of the husband and the wife and of any person who, according to the returns of income furnished by the husband and the wife, is a child or dependent relative of either or both of those spouses shall be aggregated and the income tax that would be payable by the husband if such notice had not been given shall be ascertained in accordance with the provisions of this Act. The amount of the income tax so ascertained shall be apportioned among the husband and wife in the proportion which the assessable income of each of them bears to the aggregate assessable income of both of them. |
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| (3) Where the wealth tax is assessed separately on the net wealth of the husband and on the net wealth of the wife as a result of a notice under subsection (1), the value of the net wealth of the husband and the value of the net wealth of the wife and the value of the net wealth of any individual who, according to the returns of net wealth furnished by the husband and the wife, is a child or dependent relative of either or both of those spouses shall be aggregated and the wealth tax that would be payable by the husband if such notice had not been given shall be ascertained in accordance with the provisions of this Act. The amount of the wealth tax so ascertained shall be apportioned among the husband and the wife in the proportion which the value of the net wealth of each of them bears to the value of the aggregate net wealth of both of them. |
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| (4) Where wealth tax and income tax in respect of a husband and a wife are assessed separately in consequence of a notice under subsection (1) and where the aggregate amount of the income tax and the wealth tax payable by the husband or wife is more than eighty per centum of the assessable income of such husband or wife, then the amount of the set off against the wealth tax under section 105 shall not exceed such amount as would have been set off against the wealth tax that the husband would have paid if such notice had not been given. |
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| (5) Where income tax and wealth tax are assessed separately in respect of a husband and a wife as a result of a notice under subsection (1) and where the aggregate amount of the income tax or wealth tax payable by the husband and wife will be less than the amount of the income tax or wealth tax or income tax and wealth tax that would have been payable by the husband if such notice had not been given, then the amount of such deficit shall be apportioned among such husband and wife in the proportion which the assessable income or net wealth of each such person bears to the aggregate assessable income or net wealth of both of them. |
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| (6) Where one spouse is resident and the other is non-resident and a notice under subsection (1) is given by the resident spouse, the resident spouse may in such notice elect that the provisions of sub section (2) or subsection (3) be not applied, and in that event, the income from Ceylon or the value of the net wealth, as the case may be, of the non-resident spouse and any individual who is a child or dependent relative of either or both of those spouses and who is a non-resident shall, notwithstanding the provisions of subsection (2) or subsection (3), be deemed to be the income or value of the net wealth of the resident spouse and shall be assessed accordingly, and in the computation of the income tax payable by the resident spouse, the non-resident spouse and any such individual shall not be regarded as a member of the family of the resident spouse. |
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| (7) Where one spouse is resident and the other is non-resident, the resident spouse may be deemed to be the agent of the non-resident spouse for all the purposes of this Act and shall be liable to pay the whole of the tax chargeable in respect of the profits and income or net wealth of both, whether assessed jointly or severally. |
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* The amendments made in section 45 by subsection (1) of section 22 of Act No. 18 of 1965 shall be deemed to have come into force on March 30, 1963.-See section 22 (2) of Act No. 18 of 1965. |
Sri Lanka Consolidated Acts