Compulsory Savings ACT

Arrangement of Sections

1. Short title.

2. Establishment of Compulsory Savings Fund and its administration.

3. Contributions to the Fund.

4. Certain incomes to be excluded from the contribution payable under the Act.

5. Determination of total income for the purposes of this Act.

6. Aggregation of incomes of members of a family.

7. Payment of contributions in respect of income from employment.

8. Registration of employers.

9. Provisions applicable where, employer fails to pay on due date the installment of the contribution of an employee.

10. Payment of contributions in respect of income from sources other than employment.

11. Recovery of contributions of a person from moneys due to him.

12. Penalty.

13. Power of Assessor to make assessments.

14. Additional assessments.

15. Power of Commissioner to vary the amount of the contribution.

16. Appeals.

17. Recovery of contributions.

18. Payments into the Fund.

19. Issue of certificates.

20. Interest.

21. Returns.

22. Repayment of contribution.

23. Refunds.

24. Power of Commissioner to call for information.

25. Offences.

26. Liability of manager agent of employer for offences.

27. Service of notices.

28. Forms.

29. Interpretation.

6 of 1971.

AN ACT to provide for the payment into a fund of compulsory contributions computed on the income of persons, for the establishment of such fund and for matters connected therewith or incidental thereto.

[Date of Commencement: 29th January, 1971]

1. Short title

This Act may be cited as the Compulsory Savings Act.

2. Establishment of Compulsory Savings Fund and its administration.

(1) For the purposes of this Act there shall be established a fund called the Compulsory Savings Fund (hereafter in this Act referred to as "the Fund”).

(2) The Monetary Board of the Central Bank shall have custody of the moneys of the Fund.

3. Contributions to the Fund.

Subject to the other provisions of this Act, every person shall in respect of his income for the relevant period pay to the Fund through the Commissioner a contribution computed at the appropriate rate specified in the First Schedule to this Act:

Provided, however, that—

(1) in the case of an individual other than an individual to whom the provisions of paragraph (2) or paragraph (3) apply, the contribution payable by such individual shall not exceed the amount computed at the appropriate rate specified in the Second Schedule to this Act;

(2) in the case of an individual whose income consists solely of special income, the contribution payable by such individual shall not exceed the amount computed at the appropriate rate specified in the Third Schedule to this Act;

(3) in the case of an individual whose income consists of special income and income other than special income, the contribution payable by such individual shall not exceed the amount which is the aggregate of—

(a) the amount computed at the appropriate ate specified in the Second Schedule to this Act; and

(b) the amount which bears to the excess of the amount computed at the appropriate rate specified in the Third Schedule to this Act over the amount computed at the appropriate rate specified in the Second Schedule to this Act the same proportion as the special income of that individual bears to his income.

4. Certain incomes to be excluded from the contribution payable under the Act.

(1) The contribution under this Act shall not be payable to the Fund in respect of—

(a) the income of—

(i) the Diplomatic Representative in Ceylon (by whatever name or title designated) of the Government of any foreign country and the High Commissioner in Ceylon of the Government of any part of Her Majesty's Dominions;

(ii) any such member of the staff of any Diplomatic Representative or High Commissioner referred to in sub-paragraph (i) as is a citizen or subject of the country represented by that Diplomatic Representative or High Commissioner, any such Consul or Trade Commissioner as is a citizen or subject of the country represented by him, and any such member of the staff of any Consul or Trade Commissioner as is a citizen or subject of the country represented by that Consul or Trade Commissioner;

(iii) any expert, adviser, technician or official whose salary or principal emolument is not payable by the Government of Ceylon and who is brought to Ceylon by the Government of Ceylon through any Specialised Agency of the United Nations Organisation or under the Point Four Assistance Programme of the Government of the United States of America or through the Colombo Plan Organisation;

(iv) any trainee from abroad who is sent to Ceylon under any Technical Cooperation Programme of the United. Nations Organisation and its Specialised Agencies or of the Colombo Plan Organisation,

(v) any official of the United Nations Organisation who is resident in Ceylon, and who is not a citizen of Ceylon, and

(vi) any member of any naval, military or air forces of any country other than Ceylon who are in Ceylon at the request or with the concurrence of the Government of Ceylon;

(b) the income for the relevant period of any individual if such income does not exceed six thousand rupees;

(c) income exceeding six thousand rupees received for the relevant period by an individual from employment—

(i) if such individual contributes during the relevant period to the Employees' Provident Fund or to a regulated provident fund or any provident fund approved by the Commissioner for the purposes of the principal Act an amount equal to six per centum of his total earnings within the meaning of the Employees' Provident Fund Act, No. 15 of 1958, and

(ii) if such income does not exceed twelve thousand rupees;

(d) income received for the relevant period from sources other than employment by an employee, where such income does not exceed one thousand two hundred rupees;

(e) the income of any Corporation which was or is established with capital wholly provided by the Government;

(f) the income of any class or description of persons which is exempted from the provisions of this Act by Order made by the Minister and published in the Gazette.

(2) An Order of exemption under paragraph (f) of sub-section (1) may be given retrospective effect as from any day specified in the Order, notwithstanding that such day is a day prior to the date of publication of such Order in the Gazette.

5. Determination of total income for the purposes of this Act.

(a) For the purposes of this Act, the income of any person for the relevant period shall be determined in the same manner and on the same principles as the assessable income of that person would be determined for the purposes of income tax subject to the following modifications—

(1) The income of that person shall not include—

(a) any capital gain of that person arising during the relevant period;

(b) compensation for loss of any office or employment; and

(c) any sum paid to that person during the relevant period from any regulated provident fund or any provident fund approved by the Commissioner for the purposes of the principal Act or by way of retiring gratuity, commutation of pension or refund under section 46(1) or section 49 of the Widows' and Orphans' Pension Fund Ordinance or under any regulation which relates to any Widows' and Orphans' Pension Fund or Scheme established for the Local Government Service and which corresponds to the aforesaid section 46(1) or section 49.

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