4. The following sections are hereby inserted immediately after section 33 of the principal enactment and shall have effect as sections 33A. 33B, 33C and 33D of that enactment.
| 33A.
| | (1) Every company resident in Sri Lanka shall be liable to pay for every year of assessment commencing on or after April 1, 1988, a tax (hereinafter referred to as the " advance company tax ") calculated at the appropriate rate specified in the Seventh Schedule to this Act as the rate applicable to companies of that class, on an amount equal to the amount of every qualifying distribution made by that company during that year of assessment. | | |
| | (2) Every resident company shall be entitled to deduct, in accordance with the provisions of section 125(2) (iv), from the tax payable by it under section 33(1) (a) of this Act for any year of assessment commencing on or after April 1, 1988, the advance company tax paid by it in that year of assessment. Such deduction shall not exceed 50 per centum of the tax payable under section 33 (1) (a) by that company in that year of assessment. | | |
| | (3) The advance company tax paid by a company in any year of assessment which is in excess of the amount deducted for that year of assessment under subsection (2) shall not be refunded to the company but shall be carried forward and deducted, in accordance with the provisions of section 125(2) (iv) from the tax payable under section 33(1) (a) by that company for the next succeeding year of assessment and so on, so however, that the total amount deducted on account of advance company tax from the tax payable by that company under section 33(1) (a) for any year of assessment shall not exceed 50 per centum of the tax payable under section 33 (1) (a) by that company for that year of assessment. | | |
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| 33B.
| | (1) Where a resident person, other than a company, receives in any year of assessment, a dividend in relation to which advance company tax under subsection (1) of section 33A has been paid by any resident company, the statutory income of such per- son from such dividend for that year of assessment shall be deemed to be a sum equal to the aggregate of the gross dividend and the advance company tax which is attributable to such part of that dividend as consists of a qualifying distribution. | | |
| | (2) Every resident person, other than a company, whose total statutory income for any year of assessment includes a dividend in relation to which advance company tax under subsection (1) of section 33A has been paid by any resident company, shall be entitled to deduct from the tax payable by such person for that year of assessment, a sum equal to the advance company tax paid on such part of that dividend as consists of a qualifying distribution. Where the amount to be so deducted exceeds the tax payable by him for that year of assessment, the excess shall, subject to the provisions of Chapter XXIII, be refunded to such person. | | |
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| 33c. Every resident company 'shall maintain for every year of assessment commencing on or after April 1, 1988, a record indicating-
| | (1) dividends in the form of money or of an order to pay money from other resident companies received on or after April 1, 1988, classified under the following categories and sub-categories:
| | | (b) dividends in relation to which advance company tax has not been paid ; |
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| | (2) profits and income, other than dividend income, arising or accruing on or after April 1, 1988, classified under the following categories :
| | | (a) exempt profits and income ; |
| (b) profits and income taxable at rates other than those specified in the Second Schedule to this Act ; and |
| (c) other profits and income ; |
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| | (3) details of dividends paid out during that year of assessment, out of each of the categories and subcategories of income set out in the foregoing paragraphs; | | |
| | (4) appropriations made during that year of assessment out of each of the categories and subcategories of income set out in the foregoing paragraphs, for payment of taxes and reserves. | | |
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Sri Lanka Consolidated Acts