§ 39 — Penalty tax payable where illegal development, etc., carried out

39.—(1) Where —(a)

a person has, before, on or after the appointed day —(i)

carried out any development or subdivision of any land; or

(ii)

carried on, or stopped carrying on, a controlled activity that is the subject of a controlled activity restrictive covenant in a State title relating to any land; and

(b)

the person was then not lawfully entitled to carry out the development or subdivision, or to carry on or stop carrying on a controlled activity (as the case may be), because any one or more of the events in section 3(3) or (4) did not first happen,

a person who has a material interest in the land when the rectification order is given is liable to pay penalty tax upon the Authority giving the person a rectification order under section 40(1)(d) or (2)(d).

(2) Penalty tax imposed under this Division is in addition to any interest under section 38.

(3) However, penalty tax is not payable in relation to a mere failure to pay interest under section 38 or a penalty tax previously imposed under this Division.

(4) To avoid doubt, nothing in this section limits the operation of Part 4 of the Planning Act 1998.

—(1) Where —(a)

a person has, before, on or after the appointed day —(i)

carried out any development or subdivision of any land; or

(ii)

carried on, or stopped carrying on, a controlled activity that is the subject of a controlled activity restrictive covenant in a State title relating to any land; and

(b)

the person was then not lawfully entitled to carry out the development or subdivision, or to carry on or stop carrying on a controlled activity (as the case may be), because any one or more of the events in section 3(3) or (4) did not first happen,

a person who has a material interest in the land when the rectification order is given is liable to pay penalty tax upon the Authority giving the person a rectification order under section 40(1)(d) or (2)(d).

(2) Penalty tax imposed under this Division is in addition to any interest under section 38.

(3) However, penalty tax is not payable in relation to a mere failure to pay interest under section 38 or a penalty tax previously imposed under this Division.

(4) To avoid doubt, nothing in this section limits the operation of Part 4 of the Planning Act 1998.