70.
| (1)
Every Order made under this subsection shall have the force of law.
| | (a) Where the Senate and the House of Representatives by resolutions approve any agreement, entered into between the Government of Ceylon and the Government of any other territory, for the purpose of affording relief from double taxation in relation to income tax and wealth tax under Ceylon law and any taxes of a similar character imposed by the laws of that territory, the agreement shall, notwithstanding anything in any other written law, have the force of law in Ceylon in so far as it provides for relief from income tax or wealth tax, or for charging the profits or income arising from sources in Ceylon to persons not resident in Ceylon or determining the profits or income to be attributed to such persons and their agencies, branches or establishments in Ceylon, or for determining the profits or income to be attributed to persons resident in Ceylon who have special relationships with persons not so resident. | | |
| | (b) Every agreement which is approved by resolutions under paragraph (a) shall be published in the Gazette together with a notice that it has been so approved. | | |
| | (c) The Minister may, by Order published in the Gazette, make such provision as may be necessary for the purposes of implementing any agreement which by virtue of paragraph (a) of this subsection has the force of law in Ceylon, including provision-
| | | (i) that the agreement and the Order shall have effect in respect of periods prior to the date of the execution or publication in the Gazette of the agreement; and |
| (ii) that any provision of this Act and any other written law relating to income tax or wealth tax shall have effect subject to such amendments or modifications as may be specified in the Order. |
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| | (d) In any case where any agreement referred to in paragraph (a) provides that tax payable under the laws of any territory outside Ceylon shall be allowed as a credit against any tax payable in Ceylon, the credit to be granted in respect of any Ceylon tax upon profits or income arising from any source shall not exceed the amount of the Ceylon tax payable in respect of such profits or income. | | |
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| (2) Any non-resident individual who in the year preceding the year of assessment is a British subject of Her Majesty's Realms and Territories or in any British protectorate or protected state, or in any territory in respect of which a mandate on behalf of the League of Nations has been accepted by Her Majesty, or who is a resident of any country which grants to residents of Ceylon in respect of any income tax levied in that country relief similar to that allowed by this subsection, and whose total income from all sources does not exceed fifty thousand rupees, shall be entitled to relief equal to the excess of Ceylon tax paid by him, by deduction or otherwise, for that year of assessment in respect of his Ceylon income over the amount which bears the same proportion to the amount which would be payable by him for that year by way of Ceylon tax if he were resident in Ceylon in the year preceding that year of assessment and chargeable in respect of his total income from all sources, wherever arising, as the amount of the Ceylon income, computed as though he were resident in Ceylon, bears to the amount of such total income from all sources: |
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| (3)
| | (a) For the purposes of this and the following section-
| | | (i) " income", " Ceylon income" and " total income " shall be calculated as far as may be in accordance with the provisions of this Act relating to the ascertainment of assessable income, but shall not include any sum payable out of such income by way of interest, annuity, ground rent, or royalty; |
| (ii) " Ceylon tax " means the amount of income tax before deducting any relief under this section and the following section, but does not include tax on any sum payable by way of interest, annuity, ground rent, or royalty out of the income in respect of which the tax is charged. |
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| | (b) The Ceylon rate of tax shall be ascertained by dividing the Ceylon tax by the income on which the tax has been paid or is payable, calculated in accordance with paragraph (a) of this subsection. | | |
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Sri Lanka Consolidated Acts