8. The following sections are hereby inserted immediately after section 16B, and shall have effect respectively, as section 16c and section 16D of the principal enactment: "
| 16c.
| | (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 undertaking of operating any hotel for tourists and which is referred to in"
| | | (i) paragraph (a) of section 16 (other than any such undertaking which commenced to carry on business prior to April 1, 1981) ; or |
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| | (2) The period of five years referred to in subsection (1) shall"
| | | (a) where such undertaking is an undertaking referred to in paragraph (i) of subsection (1), be reckoned from April 1, 1992 : |
| (b) where such undertaking is an under-taking referred to in section 16A, be reckoned from the commencement of the year of assessment in which the period of ten years referred to in that section terminates. |
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| 16D.
| | (1) The relevant profits and income of any specified undertaking referred to in subsection (2), shall be exempt from income tax for a period of five years reckoned from the commencement of the year of assessment in which not less than ten of the bedrooms referred to in sub-paragraph (iii) of paragraph (a) of subsection (2) are certified by the Ceylon Tourist Board as having been constructed. | | |
| | (2) For the purposes of subsection (1)"
| | | (a) "specified undertaking" means any undertaking of operating any hotel for tourists and which"
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| (b)" relevant profits and income " in relation to any specified undertaking and to any year of assessment, means the sum which bears to the profits and income within the meaning of paragraph (a) of section 3, (other than any profits and income from the disposal of capital assets) of such undertaking for that year of assessment the same proportion 'as the number of bedrooms referred to in sub-paragraph (iii) of paragraph (a), bears to the total number of bedrooms in that undertaking, '. |
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Sri Lanka Consolidated Acts