26. The following new sections are hereby inserted immediately after section 73A, and shall have effect as sections 73B , 73c, 73D, 73E, 73F and 73G respectively, of the principal enactment: -
| 73B. A company which in the year preceding any year of assessment commencing on or after April 1, 1976, makes an investment in any undertaking carried on by such company in accordance with an investment plan approved by an authority appointed by the Minister shall be entitled to a deduction from the income tax payable by that company for that year of assessment of an amount equal to -
| | (i) the amount of the investment, or | | |
| | (ii) ten per centum of the taxable income of the company for that year of assessment, | | |
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| 73C.
| | (1) Where a person carrying on an undertaking in Sri Lanka proves to the satisfaction of the Commissioner-General that in the year preceding any year of assessment commencing on or after April 1, 1976, he has brought foreign exchange to Sri Lanka for the purposes of the undertaking he shall be entitled, subject to the provisions of section 73G, to a deduction from the income tax payable by him for that year of assessment of an amount equal to -
| | | (i) the amount of the foreign exchange, or |
| (ii) twenty per centum of the income tax attributable to the income from such undertaking for that year of assessment, |
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| | (2) For the purposes of this section, for any year of assessment commencing on or after April 1, 1976, the income tax attributable to the income from an undertaking shall -
| | | (a) in the case of a resident company, other than a people's company, be a sum which bears to the income tax payable by that company for that year of assessment under paragraph (a) of subsection (1) of section 25 the same proportion as the profits and income of that undertaking bears to the total statutory income of that company for that year of assessment, and |
| (b) in the case of a non-resident company, be a sum which bears to the income tax payable by that company for that year of assessment under section 26 (excluding such part of that tax as is computed under that section at the additional rate of 6 per centum or at the rate of 33 1/3 per centum), the same proportion as the profits and income of that undertaking bears to the total statutory income of that company for that year of assessment, and |
| (c) in the case of a people's company, be a sum which bears to the income tax payable by that company for that year of assessment under paragraph (a) of subsection (1B) of section 25 the same proportion as the profits and income of that undertaking bears to the total statutory income of that company for that year of assessment, and |
| (d) in the case of any other person, be a sum which bears to the income tax payable by that person for that year of assessment the same proportion as the profits and income of that undertaking bears to the total statutory income of that person for that year of assessment. |
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| 73D.
| | (1) Where during the year preceding any year of assessment commencing on or after April 1, 1976, a person carries on an undertaking of construction and sale of houses or of development and sale of land for building purposes under any scheme approved by the Minister in charge of the subject of Housing, he shall be entitled, subject to the provisions of section 73G, to a deduction from the income tax payable by him for such year of assessment of an amount equal to twenty per centum of the income tax attributable to the income from such undertaking : | | |
| | (2) For the purposes of this section, the income tax attributable to the income from an undertaking shall be computed in the manner specified in section 73c (2). | | |
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| 73E.
| | (1) This section shall apply to any person who carries on in Sri Lanka-
| | | (a) any agricultural undertaking; |
| (b) any undertaking in fishing, extracting of minerals, or production or manufacture of goods; or |
| (c) any undertaking which, in the opinion of the Commissioner-General, promotes the purposes of any undertaking referred to in paragraph (a) or paragraph |
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| | (2) An undertaking referred to in subsection (1) shall not include an undertaking formed by the splitting up or reconstruction of any business previously in existence. | | |
| | (3) Where the Commissioner-General is satisfied that in the year commencing on January 1, 1976, there has been an increase in the number of persons, other than executive officers, employed in an undertaking commenced prior to that date and that in respect of such persons the employer has made contributions to the Employees' Provident Fund from the date of commencement of employment of each such person to December 31, 1976, the person carrying on the undertaking shall be entitled, subject to the provisions of section 73G, to a deduction from the income tax payable by him for the year of assessment commencing on April 1, 1977, of an amount which bears to twenty per centum, of the income tax attributable to the income from the undertaking the same proportion as the increase in the number of persons employed bears to the total number of persons employed on December 31, 1975 : | | |
| | (4) Where, in the year commencing on January 1, 1976, an undertaking has been commenced and the number of employees in respect of whose employment in that undertaking for the period from the date of employment to December 81, 1976, contributions have been made by the person carrying on that undertaking to the Employees' Provident Fund is not less than fifty, such person shall, subject to the provisions of section 73G, be entitled to a deduction from the income tax payable by him for the year of assessment commencing on April 1, 1977, of an amount equal to twenty per centum of the income tax attributable to the income from that undertaking. | | |
| | (5) For the purposes of this section, income tax attributable to the income from an undertaking shall be computed in the manner specified in section 73c (2). | | |
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| 73F.
| | (1) Where a person who carries on in any year of assessment commencing on or after April 1, 1976, an undertaking for the production or export of tea in bulk, crepe rubber, sheet rubber, scrap rubber, coconut oil, desicated coconut, copra, fresh coconuts or any other commodity specified for the purposes of this section by the Minister by notice published in the Gazette, proves to the satisfaction of the Commissioner-General that the total quantity of goods or articles of that undertaking produced or exported by him during the year preceding that year of assessment is in excess of the total quantity of such or similar goods or articles produced or exported by him during the period of twelve months commencing on April 1, 1974, he shall be entitled, subject to the provisions of section 73G, to a deduction from the income tax payable by him for that year of assessment of an amount which bears to twenty per centum of the income tax for that year of assessment attributable to the income from that undertaking the same proportion as the excess of the goods or articles produced or exported bears to the total quantity produced or exported in the year preceding the year of assessment. | | |
| | (2) For the purposes of this section, income tax attributable to the income from an undertaking shall be computed in the manner specified in section 73c (2). | | |
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| 73G. The aggregate of the deductions from the income tax to which a person is entitled for any year of assessment under sections 73C, 73D, 78E and 73F shall not exceed thirty-three and one-third per centum of the income tax which, but for the provisions of those sections, would have been payable by him for that year of assessment. |
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Sri Lanka Consolidated Acts