Deferment of liability by deferment determination
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
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
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
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.
