Division 1 — Taxable persons
Who is liable to pay land betterment charge
Open ↗15.—(1) A land betterment charge in respect of a chargeable consent given in relation to a development or subdivision of, or a controlled activity with respect to, any land is payable —(a)
by every person who, when the chargeable consent is given, is an owner of the land;
(b)
by every person who gives an assumption of liability notice under section 16 that the person assumes liability to pay the land betterment charge in place of any person in paragraph (a); or
(c)
by every transferee to whom a deferred liability to pay the land betterment charge is transferred under section 23.
(2) Where a taxable person becomes liable to pay a land betterment charge for a chargeable consent given in relation to a development or subdivision of, or a controlled activity with respect to, any land, the person’s liability continues despite the taxable person disposing of the land or other changes in ownership of the land.
(3) This section is subject to the making of any of the following:(a)
a deferment determination or a transfer of deferred liability under section 20 or 23, as the case may be;
(b)
an exemption under section 12;
(c)
a remission under section 14.
Assumed liability
Open ↗16.—(1) A person who wishes to assume liability to pay any land betterment charge for a chargeable consent given in relation to a development or subdivision of, or a controlled activity with respect to, any land may give an assumption of liability notice to the Authority —(a)
at any time before, on or after a liability order is given with respect to the chargeable consent; but
(b)
not after a revised liability order is given with respect to the same chargeable consent.
(2) An assumption of liability notice must —(a)
be in writing and in a form required by the Authority; and
(b)
identify the person in place of whom liability to pay the land betterment charge is being assumed by that notice (called the default taxable person).
(3) An assumption of liability notice is valid if it complies with subsection (2).
(4) A person is deemed to have assumed liability on the day on which the Authority receives and acknowledges receipt of a valid assumption of liability notice from that person.
(5) On receiving a valid assumption of liability notice, the Authority must send an acknowledgment of its receipt to the person who assumed liability.
(6) An assumption of liability notice given in accordance with this section is irrevocable.
(7) A person who assumes liability in accordance with this section is liable to pay an amount of the land betterment charge equal to the amount that the default taxable person would have been liable to pay if not for this section; and the default taxable person then ceases to be liable to pay that amount of the land betterment charge.
Apportionment of liability according to material interests
Open ↗17.—(1) Where no one has, in accordance with section 16, assumed liability to pay any land betterment charge for a chargeable consent given in relation to a development or subdivision of, or a controlled activity with respect to, any land, the liability to pay the land betterment charge must be apportioned between each material interest in the land.
(2) Before the Authority apportions liability between material interests in any land and gives a liability order under Part 5, the Authority may require each owner of the land to provide —(a)
information about the owner’s material interest in the land; and
(b)
such other information in the owner’s possession or control which the Authority considers relevant to assist it in apportioning liability.
Joint liability
Open ↗18.—(1) Where 2 or more persons are joint owners of a material interest in land, they are each jointly and severally liable to pay any land betterment charge in respect of that material interest in that land.
(2) Where 2 or more persons have, in accordance with section 16, assumed liability to pay any land betterment charge for a chargeable consent given in relation to a development or subdivision of, or a controlled activity with respect to, any land, they are each jointly and severally liable to pay the land betterment charge payable.
Interests held on trust
Open ↗19.—(1) Where a material interest in any land is held by a person as a bare trustee, this Act applies as if that interest were vested in, and the acts of the trustee in relation to it were the acts of, the person for whom that person is the trustee.
(2) Where the trustees of a settlement are liable to pay land betterment charge, any amount due may be recovered from any one or more of the responsible trustees.
(3) The responsible trustees in relation to a material interest in the land are the persons who were trustees on the day on which chargeable consent is given in relation to the land, and any person who subsequently becomes a trustee.
(4) In this section —“bare trust” means a trust under which property is held by a person as trustee —(a)
for a person who is absolutely entitled as against the trustee, or who would be so entitled but for being a minor or other person under a disability; or
(b)
for 2 or more persons who are or would be jointly so entitled,
and includes a case in which a person holds property as nominee for another;
“settlement” means a trust which is not a bare trust.
Division 2 — Deferment determinations
Deferment of liability by deferment determination
Open ↗20.—(1) A taxable person may apply to the Authority for a determination deferring payment of any land betterment charge payable by the taxable person (called in this Act a deferment determination).
(2) The Authority may make a deferment determination deferring payment of any land betterment charge payable by a taxable person in respect of a chargeable consent given in relation to a development or subdivision of, or a controlled activity with respect to, any land if the Authority is satisfied that —(a)
the taxable person is a charitable institution and the land will be used wholly or mainly for charitable purposes (whether of the taxable person or of that person and other charitable institutions); or
(b)
the taxable person and the land satisfy any other prescribed criteria in Regulations made under section 65.
(3) However, for the purposes of subsection (2)(a) and the disqualifying event under section 22(2)(b), land must not be regarded as used wholly or mainly for charitable purposes where the material interest in the land is owned by the taxable person jointly with a person who is not a charitable institution.
(4) For the purposes of subsection (2) and the disqualifying event under section 22(2)(b), use of any land for charitable purposes includes leaving it unoccupied.
(5) A deferment determination may do either or both of the following:(a)
defer the liability of the taxable person or a taxable person to pay all or part of the total amount of the land betterment charge payable as at the date of the determination;
(b)
defer the obligation of the taxable person or a taxable person to pay all or part of each amount of the land betterment charge to become payable while the deferment determination is in force.
(6) Where the Authority makes a deferment determination, the Authority must give a copy of the deferment determination to the taxable person to whom the deferment determination relates.
Effect of deferment determination
Open ↗21.—(1) A deferment determination that defers a taxable person’s liability to pay all or part of the total amount of any land betterment charge payable has the following effect:(a)
the taxable person’s liability to pay the amount of land betterment charge as at the date of the deferment determination is reduced in accordance with that determination;
(b)
the person becomes indebted to the Authority for the amount by which the liability is reduced.
(2) A deferment determination that defers a taxable person’s obligation to pay all or part of each amount of any additional land betterment charge to become payable while the deferment determination is in force has the following effect:(a)
immediately after each amount of the additional land betterment charge becomes payable, the person’s liability to pay the amount of the additional land betterment charge is reduced in accordance with the deferment determination;
(b)
the person becomes indebted to the Authority for the amount by which the liability is reduced.
(3) If a person is indebted to the Authority for an amount referred to in subsection (1)(b) or (2)(b), the amount is not recoverable by the Authority while the deferment determination is in force.
Cancelling deferment determination
Open ↗22.—(1) This section applies if a deferment determination is made and the Authority is satisfied that a disqualifying event in subsection (2) or (3) (as the case may be) occurs.
(2) Where a taxable person’s liability to pay any land betterment charge is reduced by or under a deferment determination because of section 20(2)(a), the disqualifying event is any of the following:(a)
the taxable person ceases to be a charitable institution;
(b)
the whole or part of the land in respect of which the deferred land betterment charge relates —(i)
is disposed of or transferred to another person;
(ii)
ceases to be occupied by or under the control of the taxable person; or
(iii)
ceases to be used wholly or mainly for charitable purposes;
(c)
any other disqualifying event prescribed in Regulations made under section 65 for such a deferment determination takes place.
(3) Where a taxable person’s liability to pay any land betterment charge is reduced by or under a deferment determination because of section 20(2)(b), the disqualifying event is any of the following:(a)
the taxable person ceases to satisfy the criteria prescribed in Regulations made under section 65 for the purposes of section 20(2)(b);
(b)
the whole or part of the land in respect of which the deferred land betterment charge relates —(i)
is disposed of or transferred to another person;
(ii)
ceases to be occupied by or under the control of the taxable person; or
(iii)
ceases to be used or maintained or otherwise satisfy the criteria prescribed in Regulations made under section 65 for the purposes of section 20(2)(b);
(c)
any other disqualifying event prescribed in Regulations made under section 65 for such a deferment determination takes place.
(4) Before exercising any power to cancel a deferment determination, the Authority must give written notice to the taxable person concerned —(a)
stating that the Authority intends to cancel a deferment determination relating to the taxable person;
(b)
specifying the disqualifying event that is the ground for the proposed cancellation; and
(c)
specifying the time (being not less than 7 days from the date the written notice is given to the taxable person) within which written representations may be made to the Authority with respect to the proposed cancellation.
(5) The Authority may, after considering any written representation under subsection (4)(c), decide to cancel the deferment determination in whole or in part.
(6) Where the Authority has made any decision under subsection (5) to cancel a deferment determination relating to a taxable person, the Authority must give the taxable person concerned a notice of its decision.
(7) Subject to section 48, a decision to cancel a deferment determination under this section takes effect from the date on which the notice under subsection (6) is given, or on such other later date as may be specified in that notice.
(8) Where a deferment determination is cancelled under subsection (5), the person who, immediately before a disqualifying event concerned occurs, is the taxable person whose liability to pay any land betterment charge is reduced by or under the deferment determination, is liable to pay —(a)
the amount of the land betterment charge that was reduced in accordance with that determination; or
(b)
if the deferment determination is cancelled in part, such part of the amount of the land betterment charge that was reduced in accordance with that determination as corresponding to the part of the deferment determination cancelled.
Transfer of deferred liability
Open ↗23.—(1) A taxable person whose liability to pay any land betterment charge is reduced by or under a deferment determination (called in this section the transferor) may transfer the whole of the person’s deferred liability to another person (called in this section the transferee) with the approval of the Authority.
(2) To obtain the approval of the Authority under subsection (1), the transferor must give the Authority a deferred liability transfer notice —(a)
in writing and in a form required by the Authority;
(b)
identifying the transferee to whom the deferred liability to pay the land betterment charge is being transferred, accompanied by the consent of the transferee; and
(c)
including any other particulars prescribed in order for the Authority to make a decision under this section.
(3) A transferee is deemed to have assumed a transferor’s deferred liability to pay a land betterment charge on the day on which the Authority approves the transferor’s application under subsection (1).
(4) If the Authority approves a transfer of deferred liability, the Authority must give a copy of the approval to the transferee concerned, accompanied by the relevant deferment determination setting out the details of the deferred liability transferred.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
