2. Section 3 of the Inland Revenue Act, No. 4 of 1963, hereafter in this Law referred to as the " principal enactment ", is hereby amended as follows: -
| (1) in subsection (1) of that section, by the substitution, for sub-paragraph (i) of paragraph (h) of that subsection, of the following new sub-paragraph: -
| | " (i) the change of ownership of any property occurring by sale, disposal, transfer. realization, exchange, or in any other manner whatsoever, other than-
| | | (a) any such change of ownership of a fiduciary's rights in a property subject to a fideicommissum as occurs by a transfer or extinction of those rights. |
| (b) a change of ownership of a right to exploit a property occurring by a transfer of that right, |
| (c) a change of ownership of any motor vehicle in respect of which a deduction for depreciation has not been allowed under section 10 or of any household effect or other article (excluding jewellery) of personal use, and |
| (d) a change of ownership of any property occurring on the donation of that property by its owner to the Government of Sri Lanka,"; and |
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| (2) In subsection (4) of that section, by the substitution, for sub-paragraph (x) of paragraph (j) of that subsection, of the following new sub-paragraph: -
| | " (x) where the property consists of shares in respect of which there has been a return or distribution of capital, the value of the property at the time when such shares were acquired shall-
| | | (a) if such shares were acquired by him before April 1, 1957, be an amount equal to the market value of the shares on April 1, 1957, less the amount of the capital returned or distributed, on or after that date, if the amount of the capital returned or distributed is not a dividend within the meaning of this Act. and |
| (b) if such shares were acquired by Mm on or after April 1, 1957. be an amount equal to the value to him of the shares at the time when they were' acquired less the amount of the capital returned or distributed if the amount of capital returned or distributed is not a dividend within the meaning of this Act;". |
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Sri Lanka Consolidated Acts