6. Section 6 of the principal enactment is hereby amended as follows ; -
| (1) in subsection (1) of that section-
| | (i) by the omission of the word " and" occurring in paragraph (g) of that subsection ; | | |
| | (ii) by the relettering of paragraph (h) of that subsection as paragraph (j) ; and | | |
| | (iii) by the insertion, immediately after paragraph (g) of that subsection, of the following paragraphs : -
| | | " (h) net capital gains arising from-
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| (i) the value of a prize won at a sweep or lottery ; and ' ; |
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| (2) by the insertion, immediately after subsection (1) of that section, of the following new subsections : -
| | " (1A)Any offertory, subscription or other donation to a charitable institution shall be deemed to be such income as is referred to in paragraph (j) of subsection (1). | | |
| | (1B) Where no period of exemption from the tax is allowed to the charitable institution referred to in subsection (2) of section 9A by the Commissioner to follow immediately the period of exemption from the tax consisting of the three years of assessment specified in paragraph (a) of that subsection, any such part of the donated sum or sums mentioned in that subsection as remains, at the expiry of those three years of assessment, unspent on the charitable purpose referred to in that subsection shall be deemed, for the purposes of this Ordinance, to be income of that institution for the third of those three years of assessment. | | |
| | (1C) Where no period of exemption from the tax is allowed to the charitable institution referred to in subsection (2) of section 9A by the Commissioner to follow immediately a period of exemption from the tax already allowed by the Commissioner to that institution, any such part of the donated sum or sums mentioned in that subsection as remains, at the expiry of the period of exemption already allowed, unspent on the charitable purpose referred to in that subsection shall be deemed, for the purposes of this Ordinance, to be income of that institution for the year of assessment constituting the period of exemption already allowed or the last of the years of assessment included in the period of exemption already allowed. | | |
| | (1D) The racing of horses owned by any person shall, for the purposes of paragraph (a) of subsection (1), be deemed to be a business carried on by that person. | | |
| | (1E) Any loss arising from a business referred to in subsection (1D) shall not be deducted from the profits or income from any other source but shall be deducted from the profits or income from that business for the next succeeding year of assessment, and if such deduction cannot be made from the profits or income from that business for such next succeeding year, it shall be made as early as possible from the profits or income from that business for any subsequent year of assessment. " ; | | |
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| (3) in subsection (2) of that section,-
| | (A) in paragraph (a) of that subsection--
| | | (a) in sub-paragraph (i) of that paragraph-
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| (b) in sub-paragraph (v) of that paragraph, by the substitution, for all the words from " and such part" to the end of that sub-paragraph, of the following : - |
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| | (B) in paragraph (d) of that subsection by the substitution, for the full stop at the end of that paragraph, of a semi-colon ; and | | |
| | (C) by the addition, at the end of that subsection, of the following new paragraphs : -
| | | (g) " change of ownership ", in the context of the definition of " capital gain" or " capital loss ", does not include-
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| (h) " market value", with reference to any property and any date and in the context of the definition of " value of any property ", means the price which, in the opinion of an Assessor, that property would have fetched on that date in an open market; |
| (j) " net capital gains", in respect of any year of assessment, means the excess of the capital gains for that year over the capital losses for that year; |
| (k) " value ", with reference to any property or consideration in the context of the definition of " capital gain " or " capital loss ", shall be as follows : -
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Sri Lanka Consolidated Acts