§ 105R — Revocation of approval

105R.—(1) This section applies where —(a)

either —(i)

a person is approved by the Minister, an authorised body or a person appointed by the Minister (called in this subsection the approving authority) under a prescribed section for a tax incentive to be applied to the person’s income under that provision or regulations made under that provision; or[Act 41 of 2020 wef 06/12/2022]

(ii)

a matter is approved by an approving authority under a prescribed section for a tax incentive to be applied to a person’s income under that provision or regulations made under that provision; and

(b)

the person fails to comply with a condition of the approval.[32/2019]

(2) The approving authority may, by written notice, require the person to show cause, within 30 days after the date the notice is served on the person or such longer period as the approving authority may permit in a particular case, why the approval should not be revoked.[32/2019]

(3) If the approving authority is satisfied, having regard to the person’s representation and all the relevant circumstances of the case, that it is just and reasonable to do so, the approving authority may revoke the approval, and the revocation is effective from a date specified by the approving authority to the person.[32/2019]

(4) The approving authority may specify any date for the revocation to take effect, including (if it is just and reasonable to do so) —(a)

a date before the date of the non‑compliance with the condition; or

(b)

if the condition is to be complied with over a period of time, before the date of commencement of that period.[32/2019]

(5) The revocation of an approval under this section does not affect the operation of any provision of this Act providing for other consequences for a breach of a condition of the approval.[32/2019]

(6) To avoid doubt, where —(a)

a tax incentive has been applied to any income of the person under a prescribed section, or an order under section 13(12);

(b)

the tax incentive would not have been applied to the person’s income if the person or matter were not an approved person or matter under the prescribed section on the date the relevant income accrued to or was derived or received by the person, or the relevant expenditure was incurred by the person, as the case may be; and

(c)

the approval is revoked under this section with effect from or before that date,

the Comptroller may make an assessment or additional assessment under section 74 on the person.

[32/2019]

(7) This section applies to an approval given under a prescribed section whether before, on or after 2 December 2019.[32/2019]

(8) In this section —(a)

a prescribed section is a section of the Act specified in the Fourth Schedule;

(b)

a tax incentive is any of the following:(i)

an exemption from tax;

(ii)

a concessionary rate of tax;

(iii)

a deduction or an allowance;

(iv)

a reduction of the statutory income of a person;

(c)

a tax incentive that is an exemption from tax is applied to a person’s income if any income of the person becomes exempt from tax;

(d)

a tax incentive that is a concessionary rate of tax is applied to a person’s income if tax is levied on any income of the person at that rate;

(e)

a tax incentive that is a deduction or an allowance is applied to a person’s income if it is allowed or made for any expenditure in ascertaining the person’s chargeable income; and

(f)

a tax incentive that is a reduction of the statutory income of a person is applied to a person’s income if such reduction is made to the person’s statutory income.[32/2019]

—(1) This section applies where —(a)

either —(i)

a person is approved by the Minister, an authorised body or a person appointed by the Minister (called in this subsection the approving authority) under a prescribed section for a tax incentive to be applied to the person’s income under that provision or regulations made under that provision; or[Act 41 of 2020 wef 06/12/2022]

(ii)

a matter is approved by an approving authority under a prescribed section for a tax incentive to be applied to a person’s income under that provision or regulations made under that provision; and

(b)

the person fails to comply with a condition of the approval.[32/2019]

(2) The approving authority may, by written notice, require the person to show cause, within 30 days after the date the notice is served on the person or such longer period as the approving authority may permit in a particular case, why the approval should not be revoked.[32/2019]

(3) If the approving authority is satisfied, having regard to the person’s representation and all the relevant circumstances of the case, that it is just and reasonable to do so, the approving authority may revoke the approval, and the revocation is effective from a date specified by the approving authority to the person.[32/2019]

(4) The approving authority may specify any date for the revocation to take effect, including (if it is just and reasonable to do so) —(a)

a date before the date of the non‑compliance with the condition; or

(b)

if the condition is to be complied with over a period of time, before the date of commencement of that period.[32/2019]

(5) The revocation of an approval under this section does not affect the operation of any provision of this Act providing for other consequences for a breach of a condition of the approval.[32/2019]

(6) To avoid doubt, where —(a)

a tax incentive has been applied to any income of the person under a prescribed section, or an order under section 13(12);

(b)

the tax incentive would not have been applied to the person’s income if the person or matter were not an approved person or matter under the prescribed section on the date the relevant income accrued to or was derived or received by the person, or the relevant expenditure was incurred by the person, as the case may be; and

(c)

the approval is revoked under this section with effect from or before that date,

the Comptroller may make an assessment or additional assessment under section 74 on the person.

[32/2019]

(7) This section applies to an approval given under a prescribed section whether before, on or after 2 December 2019.[32/2019]

(8) In this section —(a)

a prescribed section is a section of the Act specified in the Fourth Schedule;

(b)

a tax incentive is any of the following:(i)

an exemption from tax;

(ii)

a concessionary rate of tax;

(iii)

a deduction or an allowance;

(iv)

a reduction of the statutory income of a person;

(c)

a tax incentive that is an exemption from tax is applied to a person’s income if any income of the person becomes exempt from tax;

(d)

a tax incentive that is a concessionary rate of tax is applied to a person’s income if tax is levied on any income of the person at that rate;

(e)

a tax incentive that is a deduction or an allowance is applied to a person’s income if it is allowed or made for any expenditure in ascertaining the person’s chargeable income; and

(f)

a tax incentive that is a reduction of the statutory income of a person is applied to a person’s income if such reduction is made to the person’s statutory income.[32/2019]