19. The following section is hereby inserted immediately after section 27, and shall have effect as section 27A, of the principal enactment: -
| 27A.
| | (1) Every resident company shall deduct from the amount of any dividend payable to any shareholder in the form of money or an order to pay money out of profits which are exempt from income tax under this Act or under any other enactment, income tax equal to 331 per centum of that part of the dividend which is not exempt from income tax under subsection (1) of section 5A, subsection (3) of section 6 or subsection (4) of section 7A of this Act, or under section 3 of the Housing Developers (Special Provisions) Law, No. 49 of 1973. | | |
| | (2) The amount of the income tax which a resident company is, under subsection (1), required to deduct shall be a debt due from such resident company to the Republic and shall be recoverable forthwith as such or may be assessed and charged upon such company in addition to any income tax otherwise payable by it. | | |
| | (3) Where a dividend is payable by any-resident company to another company and a deduction has been made under subsection (1) in respect of that dividend, that dividend shall, notwithstanding any other provisions of this Act, be deemed not to form part of the assessable income of the second-mentioned company.". | | |
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Sri Lanka Consolidated Acts