12. Section 163 of the principal enactment is hereby amended by the insertion, immediately after the definition of " property ', of the following definition : '" qualifying distribution " means the whole or part of any gross dividend distributed in any year of assessment commencing on or after April 1, 1988, by a resident company to a shareholder, in the form of money or of an order to pay money, out of such profits of the company which, if taxable for that year of assessment, would be taxed at the appropriate rate specified in the Second Schedule to this Act, as the rate applicable to companies of that class, but does, not include any dividend distributed out of
| (i) profits or income which accrued, or arose, to such company, prior to April 1,1988 ; |
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| (ii) its exempt income ; and |
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| (iii) any income from dividends received by such company.'. |
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Sri Lanka Consolidated Acts