Sri Lanka Consolidated Acts

Inland Revenue Act (No. 38 of 2000)

TABLE OF PROVISIONS

           Long Title

   1.	   Short title  
   2.	   Imposition of Income Tax  
   3.	   Income chargeable with tax  
   4.	   Profits from employment  
   5.	   Net annual value of land and improvements thereon or of any place of residence  
   6.	   Profits or income arising from rents of land and improvement thereon  
   7.	   Capital gain  
   8.	   Exemption from income tax of certain persons (other than individuals) on the whole or any part of their profits and income  
   9.	   Exemption from Income Tax of certain profits and income of certain officers and employees  
   10.	   Exemption from Income tax of certain interest received  
   11.	   Exemption from income tax of certain interest  
   12.	   Exemption from income tax of certain profit and income from lands and improvements thereon  
   13.	   Exemption from income tax of certain subsidies  
   14.	   Exemption from income tax of certain capital gains  
   15.	   Miscellaneous exemptions from income tax  
   16.	   Exemption of certain profits and income of any resident guest  
   17.	   Exemption from income tax for five years of the profits and income of certain companies  
   18.	   Exemption from income tax of the profits and income of any undertaking which provides certain services  
   19.	   Exemption from income tax of the profits and income of any company engaged in non plantation agricultural activities  
   20.	   Exemption from income tax of profits and income of a company which exports fresh or processed vegetables or fruits and cultivates vegetables or fruits  
   21.	   Exemption from income tax of profits from the construction and first sale of certain houses  
   22.	   Power of Commissioner-General to recommend cancellation of approval granted under section 17  
   23.	   Ascertainment of profits or income  
   24.	   Deductions not allowed in ascertaining profits and income  
   25.	   Basis for computing statutory income  
   26.	   Appointment of profits  
   27.	   Total statutory income  
   28.	   Aggregation of the total statutory income of a child with that of his parent  
   29.	   Deductions from total statutory income in arriving at assessable income  
   30.	   Taxable income  
   31.	   An allowance in respect of qualifying payments  
   32.	   Rates of income tax on persons other than companies  
   33.	   Special provision relating to taxation of interest on compensation payable in respect of property vested in the Government the Land Reform commission or a public corporation or a local authority  
   34.	   Deductions of income tax from interest payable on certain deposit accounts  
   35.	   Rate of income tax on gross interest on loans granted by a company, partnership or other body of Sri Lanka  
   36.	   The rate of income tax on royalty payable to any company partnership or other body of persons outside Sri Lanka  
   37.	   The rate of income tax on profits from employment for a specified period of a non citizen employed in Sri Lanka  
   38.	   Rate of income tax on the profits and income of any foreign currency banking unit  
   39.	   Rate of income tax on profit from certain undertakings earned on by a person other than a company  
   40.	   Rate of income tax on profits from certain undertakings carried on by a company  
   41.	   Rate of income tax on dividends paid out of profits taxed in accordance with section 40  
   42.	   Deduction from tax payable by any quoted public company under certain conditions  
   43.	   Deduction from tax payable by any company which obtain a quotation of its shares and satisfies certain further conditions  
   44.	   Rate of income tax on qualified export profits and income of person not being a company, who commenced to carry on any specified undertaking  
   45.	   Rate of income tax an qualified export profits and income of a company which commences to carry on any specified undertaking  
   46.	   Rate of income lx on qualified export profits and income of a person not being a company who specified undertaking  
   47.	   Rate of income tax on qualified export profits and income of a company which carries on any specified undertaking  
   48.	   Rate of income tax on dividends out of exports profits and income  
   49.	   Rate of income tax on deemed exports of any person or partnership  
   50.	   Rate of income tax on profits and income from service rendered out side Sri Lanka by any resident company or partnership  
   51.	   Rate of income tax on employment and fees earned in foreign currency by an individual or by partnership  
   52.	   Interpretation  
   53.	   Income tax to which any resident company is liable  
   54.	   Advance company tax on qualifying distribution to which resident companies are liable  
   55.	   Dividend consisting of any qualifying distribution when received by a resident person other than a company  
   56.	   Resident company to maintain a record of dividends received  
   57.	   Income tax to which any non resident company is liable  
   58.	   Certain dividends not to form part of the assessable income of the receiving company. company  
   59.	   Profits of a company from transactions with its shareholders  
   60.	   Every resident company to deduct income tax from any dividend received from any quoted public company and payable to any non-resident person  
   61.	   Resident company entitled to deduct tax from any dividend  
   62.	   Certain undistributed profits to be treated as distributed  
   63.	   Provisions applicable where the profits and income of a company are appropriated by the director. & c. of that company  
   64.	   Assessment of child's income  
   65.	   Returns to be furnished by receiver and trustee and their liability to tax  
   66.	   Chargeability to tax of trustee of an incapacited person  
   67.	   Liability of executor to tax payable by deceased person  
   68.	   Return to be furnished by executor and changeability of an executor and beneficiary  
   69.	   Joint trustees and executors  
   70.	   Every unit trust deemed to be a company  
   71.	   Assessment of partnership income  
   72.	   Assessment to be made in the name of the partnership in certain circumstances  
   73.	   What constitutes residence  
   74.	   Chargeability of certain profits of non resident persons  
   75.	   Persons assessable on behalf of a non-resident person  
   76.	   Liability of certain non-resident persons  
   77.	   Profits of certain business to be computed by a percentage of the turnover  
   78.	   Profits of non resident person from sale of exported produce  
   79.	   Liability to income tax of certain profits on non-resident person  
   80.	   Exemption from income tax of non-resident persons in certain cases and liability of certain non-resident persons to income tax at reduced rates  
   81.	   Profits of non-resident ship owners or charterers  
   82.	   Master of ship to be an agent  
   83.	   Refusal for clearance for ship where income tax is in arrears  
   84.	   Profit of non-resident owners or characters of aircraft  
   85.	   Application of subsection (2) of section 81,section 82, and section 83 to profits of non-resident owners or charterers of any aircraft  
   86.	   Ascertainment of profits of insurance companies  
   87.	   Ascertainment or profits of the Insurance Corporation of Sri Lanka from the business of life insurance  
   88.	   Interest on certain loans deemed to be profits and income  
   89.	   Certain royalties deemed to be profits and income  
   90.	   Deduction of income tax from interest &c. payable to persons outside Sri Lanka  
   91.	   Deduction of income tax from payment made to any foreign entertainer or artist  
   92.	   Effect of agreements for double taxation relief  
   93.	   Relief in respect of Sri Lanka income tax  
   94.	   Applicability of provisions relating to particular sources of profits or income  
   95.	   How certain receipts of insurance are to be treated  
   96.	   Ascertainment of income of clubs, trade, associations &c  
   97.	   Certain transactions and dispositions to be disregarded  
   98.	   Returns and information to be furnished  
   99.	   Audit reports to be furnished by partners & c  
   100.	   Returns and other documents to contain the national identity card number or passport number  
   101.	   Returns to be furnished of income received on account of or paid to other persons  
   102.	   Occupiers to furnish returns of rent payable  
   103.	   Return of lodgers and inmates  
   104.	   Power of Commissioner-General to impose penalty for furnish return  
   105.	   Payment of tax by self-assessment  
   106.	   Employees to deduct income tax  
   107.	   Employers to give notice to Commissioner-General  
   108.	   Application of income tax tables  
   109.	   Directions to employers  
   110.	   Employers to maintain proper records  
   111.	   Duties of employee following deductions from Income Tax  
   112.	   Adjustments of amount of income tax not paid or paid in excess  
   113.	   Employee to give notice when necessary deductions are not made  
   114.	   income tax deducted not to form part of assets of employers  
   115.	   Defaults in the deduction or payments of income tax  
   116.	   Issue of Assessments on employers  
   117.	   Appeals  
   118.	   Penalty for default  
   119.	   Credit for tax paid  
   120.	   Compliance with the provisions of this Chapter relating to forms  
   121.	   Interpretation  
   122.	   Bank and financial institution to deduct income tax  
   123.	   Credit for tax deduction  
   124.	   Issue of direction  
   125.	   Duties of bank and financial institution following deductions of income tax  
   126.	   Default in the deduction of income tax  
   127.	   Issue of assessment on bank and financial institution  
   128.	   Appeals  
   129.	   Penalty for default  
   130.	   Interpretation  
   131.	   Specified persons to deduct income from specified fees  
   132.	   Provisions of Chapter XV to apply in relation to the deduction under this Chapter of income tax from specified fees  
   133.	   Retention of fifteen per centum of moneys lying to the credit of a contributor to a specified provident fund to meet any tax payable  
   134.	   Assessment and additional assessments  
   135.	   Notice of assessment  
   136.	   Appeals to the Commissioner - General  
   137.	   Constitution of the Board of Review  
   138.	   Appeals to the Board of Review  
   139.	   Commissioner General may refer appeals 10 the Board of Review  
   140.	   Hearing and determination of appeals by the Board of Review  
   141.	   Appeal on a question of law to the Court of Appeal  
   142.	   Assessment or amended assessments to be final  
   143.	   Penalty for incorrect return  
   144.	   Tax in default and sums added thereto  
   145.	   Tax to include fines &c  
   146.	   Tax to be a first charge  
   147.	   Notice to defaulter  
   148.	   Recovery of tax by seizure and sale  
   149.	   Proceedings for recovery before Magistrate  
   150.	   Recovery of tax out of debts &c  
   151.	   Transfer of immovable property to Government in lieu of payment of tax in cash  
   152.	   Tax in default to be recovered from renumeration of employee  
   153.	   Tax in default of partner to be recovered from the assets of a partnership  
   154.	   Recovery of income tax from the income of a child  
   155.	   Recovery of income tax payable by a beneficiary from the trustee  
   156.	   Recovery of income tax payable by a beneficiary from the executor  
   157.	   Gift tax to be recovered from the done in certain circumstances  
   158.	   Recovery of tax from persons leaving Sri Lanka  
   159.	   Use of more than one means of recovery  
   160.	   Power of Commissioner-General to obtain information for the recovery of tax  
   161.	   Liabilities of directors of private company in liquidation  
   162.	   Delegation of Commissioner-General's powers and functions  
   163.	   Signature and service of notice  
   164.	   Validity of notice assessment &c  
   165.	   Precedent partner to act on behalf of a partnership  
   166.	   Principal officer to act on behalf of company or body of persons  
   167.	   Who may act for incapacitated or non-resident person  
   168.	   Indemnification of representative  
   169.	   Tax paid in excess to be refunded  
   170.	   Interest payable on the amount of a refund in certain circumstances  
   171.	   Penalties for failure to make returns making incorrect returns &c  
   172.	   Breach of secrecy and other matters to be offences  
   173.	   Penal provisions relating to fraud, &c  
   174.	   Tax to be payable notwithstanding any prosecution or conviction for an offence under this Act  
   175.	   Prosecutions to be with the sanction of the Commissioner-General  
   176.	   Admissibility of statement and documents in evidence  
   177.	   Officers  
   178.	   Official secrecy  
   179.	   Inland Revenue Incentive Fund  
   180.	   Commissioner-General may pay rewards to information  
   181.	   Regulation  
   182.	   Forms  
   183.	   Power to search buildings or places  
   184.	   Power to search business premises  
   185.	   Sinhala text to prevail in case of inconsistency  
   186.	   Interpretation  
   187.	   Application of the Inland Revenue Act No. 28 of 1979