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Recovery of land betterment charge
31.—(1) Any land betterment charge is deemed, when it becomes due and payable at the expiry of the time so delimited by or under section 24, to be a debt due to the Government, and must be collected and received by the Authority in accordance with this Act. (2) Any land betterment charge that is unpaid may be recovered as a debt in any court of competent jurisdiction in the name of the Authority.
Action to recover may be taken any time
32. Any action or remedy for recovery of land betterment charge and any interest under section 38 may be taken at any time, any written law to the contrary notwithstanding.
Priority of case in insolvency
33.—(1) The amount of any land betterment charge or penalty tax —(a) due from a bankrupt at the date of the bankruptcy order, or from the bankrupt so dying at the date of his or her death; and (b) having become due within 12 months before the date of the bankruptcy order or his or her death, is, by this subsection, included among the debts which, under section 352 of the Insolvency, Restructuring and Dissolution Act 2018, are to be paid in priority to all other debts in the distribution of property of the bankrupt or individual dying insolvent. (2) The amount of any land betterment charge or penalty tax —(a) due from a company at the date of the winding up order; and (b) having become due within 12 months before the date of commencement of the winding up, is, by this subsection, included among the taxes which, under section 203 of the Insolvency, Restructuring and Dissolution Act 2018, are to be paid in priority to all other unsecured debts in a winding up of the company.
Contribution between taxable persons jointly liable
34. Where 2 or more persons are liable for the same land betterment charge payable for a chargeable consent given in relation to a development or subdivision of, or a controlled activity with respect to, any land, any one of them who has paid the whole of the land betterment charge (called A) —(a) may recover from any other person jointly liable with A an amount which bears to the amount of land betterment charge so paid the same proportion as the value of the estate or interest in the land of the other person bears to the total of the values of the estates or interests in the land of all persons liable for that land betterment charge; and (b) may —(i) sue for that firstmentioned amount in any court of competent jurisdiction as money paid to the use of that other person at that other person’s request; or (ii) retain or deduct that firstmentioned amount out of any moneys in A’s hands belonging or payable to that other person.
Contribution by tenants or occupiers
35.—(1) Where a taxable person makes default in payment of any land betterment charge, then, without in any way releasing the taxable person from liability (except to the extent of any payments deemed to be made on the taxable person’s behalf mentioned in paragraph (b)), the following provisions apply as long as the default continues:(a) if the land betterment charge is payable in respect of any land which is the subject to any lease or occupied by any person, then the lessee or occupier is responsible for the payment of the contribution and it may be recovered from the lessee or occupier as if the lessee or occupier were the defaulting taxable person; (b) all payments made under this section by a lessee or an occupier are deemed to be made on behalf of the defaulting taxable person. (2) The responsibility of the lessee or occupier under this section is limited to any rent or payments due by the lessee or occupier to the taxable person at the time of demand made or action brought by or on behalf of the Authority. (3) Any payment to the Authority under this section constitutes a valid discharge to the lessee or occupier for rent or payments due by the lessee or occupier to the defaulting taxable person as against all persons whomsoever.
Land betterment charge to be first charge on land
36.—(1) Any land betterment charge payable in respect of a chargeable consent relating to any land shall, until it is paid, be a first charge on that land in priority over all other encumbrances whatever. (2) Where any land (called in this subsection a portion) is disposed of and that land formed part of land (called in this subsection the whole parcel) which immediately before the disposition was subject to a charge for an amount (called in this subsection the total charge) under this section —(a) the portion is subject to a charge (as mentioned in subsection (1)) for such amount as bears to the total charge the same proportion as the area of that portion bears to the area of the whole parcel; and (b) the remainder of the whole parcel is subject to a charge (as mentioned in subsection (1)) for an amount equal to the difference between the total charge and the charge to which the portion is subject by virtue of paragraph (a), in addition to any other charge to which the portion or remainder of the whole parcel may become liable. (3) A certificate under section 55 is, for the purpose of determining the amount of any charge on any land as at any date, conclusive evidence in favour of any person referred to in section 55(2) as at the date specified in the certificate there was no charge on the land other than a charge arising out of any matter specified in the certificate.
Overpayment
37.—(1) Subject to subsection (3), where a taxable person is liable to pay any land betterment charge and the amount paid by the taxable person proves greater than the amount for which that person is liable under this Act, the taxable person is entitled to have the amount overpaid refunded and the Authority must, as soon as practicable, repay the overpayment. (2) In particular, where —(a) a taxable person has paid any amount by way of land betterment charge if a chargeable consent were given in relation to any land; and (b) no such chargeable consent is eventually given in relation to the land, the taxable person is entitled to have the amount refunded and the Authority must, as soon as practicable, repay that amount. (3) However, a refund under this section must be claimed in writing and made to the Authority within 6 years starting the date the liability order or revised liability order to which the claim relates becomes final and conclusive. (4) To avoid doubt, nothing in this section operates to extend any time limit for appeal under Part 7.
Interest in case of default
38. If any land betterment charge is not paid before the end of the time delimited by or under section 24(1) or (2), the taxable person concerned is liable to pay to the Authority interest, at the prescribed rate, on the amount of land betterment charge unpaid, calculated on a daily basis from the end of the time so delimited until the day the land betterment charge is paid.
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.
Rectification order
40.—(1) Where it appears to the Authority that a person has, before, on or after the appointed day, carried out any development of any land and there was no entitlement to do so because —(a) there was no grant of a planning permission or conservation permission for the development; or (b) there was no accepting of a lodgment of any plans for the development of the land that may be deemed authorised without express written permission, the Authority may — (c) notify the competent authority with a view to the competent authority exercising relevant powers under Part 4 of the Planning Act 1998 relating to the land; and (d) give a rectification order to the person or persons with a material interest in the land when the rectification order is given, directing the person or persons to pay a penalty tax if the competent authority —(i) grants planning permission or conservation permission under section 14 of the Planning Act 1998 for the development, which then becomes an authorised development; or (ii) accepts a lodgment of any plans for the development of the land which is then deemed authorised without express written permission (as the case may be). (2) Where it appears to the Authority that a person has, before, on or after the appointed day, carried out any development or subdivision of any land, or 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 there was no entitlement to do so because —(a) the carrying out of the development or subdivision, or the carrying on or stoppage in carrying on the controlled activity (as the case may be) would have been lawful only after varying by the Authority of —(i) a special condition in a directly allotted State title relating to the land; (ii) a restrictive covenant in a concessional State title relating to the land; (iii) a controlled activity restrictive covenant in a State title relating to the land; or (iv) a subdivision control restrictive covenant in a State title relating to the land; and (b) that variation was not obtained before the carrying out or carrying on of the development or subdivision of the land or the controlled activity, or the stoppage in carrying on a controlled activity, as the case may be, the Authority may give a rectification order to the person or persons with a material interest in the land when the rectification order is given, directing the person or persons — (c) to restore the developed or subdivided land or to stop or resume any controlled activity to alleviate the effect of the unlawful development, subdivision or activity (as the case may be) at the person’s cost; or (d) to pay a penalty tax if —(i) the Authority considers that restoring the developed or subdivided land or stopping or resuming any controlled activity in paragraph (c) is not reasonably practicable or is undesirable; and (ii) the competent authority grants or has granted planning permission or conservation permission for the development or subdivision under section 14 of the Planning Act 1998, or accepts or has accepted a lodgment of any plans for the development or subdivision of the land which is then deemed authorised without express written permission (as the case may be) where that permission or lodgment is required for it to be an authorised development or a lawful subdivision. (3) Any rectification order under subsection (2)(c) —(a) may include a requirement —(i) to demolish or remove any fence or partition enclosing the land or any structure erected on the land resulting from any unlawful development, subdivision or activity mentioned in subsection (2), and to dispose of the fence, partition or structure and any resulting debris from the demolition; or (ii) to stop, either wholly or to the extent specified in the rectification order, any controlled activity; and (b) takes effect despite the provisions of any other written law or anything contained in the memorandum or articles of association, trust deed or other constitution of the person given the order. (4) A rectification order must state the period within which —(a) the person must comply with the rectification order (called in this Act the compliance period), which must be at least 14 days after the order is given; and (b) the person may appeal against the rectification order if the person objects to and does not wish to comply with the rectification order. (5) The compliance period for a rectification order must not be longer than the objection period specified in that rectification order. (6) A person who —(a) is given a rectification order under subsection (2)(c); and (b) does not appeal against the order within the time delimited by this Act for appeals, must take, so far as is reasonably practicable and at the person’s cost, such steps as are necessary to comply with the rectification order within the compliance period specified in that order. (7) A person who, without reasonable excuse, fails to comply with subsection (6) shall be guilty of an offence and shall be liable on conviction —(a) to a fine not exceeding $200,000 or to imprisonment for a term not exceeding 12 months or to both; and (b) in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.
Amount of penalty tax
41.—(1) Subject to sections 42 and 43, the amount of penalty tax payable upon the giving of a rectification order under section 40(1)(d) or (2)(d) is the total of the following:(a) the amount of the land betterment charge that would have been payable as if a chargeable consent were given, on the date of the rectification order or a later date specified in that order, in relation to the development or subdivision of, or the controlled activity with respect to, the land, that is the subject of the rectification order; (b) 30% of the amount in paragraph (a). (2) However, no penalty tax is payable upon giving a rectification order to the person or persons with a material interest in the land when the rectification order is given (each called in this Division a tax payer) if the Authority is satisfied that the development or subdivision of the land happened or the controlled activity was carried on or stopped (as the case may be) solely because of circumstances beyond the tax payer’s control (or if a person acted on behalf of that tax payer, because of circumstances beyond either the person’s or the tax payer’s control) but not amounting to financial incapacity. (3) For the purposes of subsection (2), it is for the tax payer to prove that —(a) it was not reasonably practicable to do more than what was in fact done to prevent the development or subdivision of the land, the carrying on of the controlled activity or the stoppage of the controlled activity, as the case may be; or (b) the tax payer (and the person acting on behalf of the tax payer) did not know and could not reasonably have known about the development or subdivision of the land, the carrying on of the controlled activity or the stoppage of the controlled activity, as the case may be.
Reduction in penalty tax for voluntary disclosure, etc.
42. The Authority may in the following circumstances reduce the amount of penalty tax payable upon the giving of a rectification order, by using the percentages below in lieu of the percentage in section 41(1)(b):(a) 6% of the amount of land betterment charge worked out under section 41(1)(a) if, before the Authority informs the tax payer given the rectification order that an investigation relating to the carrying out of any development or subdivision of the land or the carrying on of a controlled activity or the stoppage in carrying on a controlled activity (as the case may be) without the relevant chargeable consent is to be carried out, the tax payer discloses to the Authority or an authorised officer, in writing, sufficient information to enable the nature and extent of any development or subdivision of the land or controlled activity carried on or of the stoppage of a controlled activity (as the case may be) to be ascertained; (b) 24% of the amount of land betterment charge worked out under section 41(1)(a) if, after the Authority informs the tax payer given the rectification order that an investigation relating to the carrying out of any development or subdivision of the land or the carrying on of a controlled activity or the stoppage in carrying on a controlled activity (as the case may be) without the relevant chargeable consent is to be carried out and before the investigation is begun, the tax payer discloses to the Authority or an authorised officer, in writing, sufficient information to enable the nature and extent of any development or subdivision of the land or controlled activity carried on or of the stoppage of a controlled activity (as the case may be) to be ascertained.
Increase in penalty tax for concealment
43. In lieu of the amount calculated according to section 41(1)(b), the Authority may increase the amount of penalty tax payable upon the giving of a rectification order by using 50% of the amount of land betterment charge worked out under section 41(1)(a), if the Authority is satisfied that —(a) the Authority has informed the tax payer given the rectification order that an investigation is to be carried out; and (b) before the investigation is completed, the tax payer (or a person acting on behalf of the tax payer) hinders or obstructs an authorised officer exercising functions under Part 8, or a designated valuer exercising functions under Part 8, for the purposes of determining the tax payer’s liability.
Recovery of penalty tax
44. Any penalty tax imposed under this Division is recoverable as if —(a) the penalty tax were a land betterment charge due and payable under this Act; (b) the rectification order imposing the penalty tax were a liability order; and (c) the rectification order imposing the penalty tax were a chargeable consent.
Evasion
45.—(1) Any person who wilfully with intent to evade or to assist any other person to evade payment of any land betterment charge —(a) makes any false statement, declaration or entry in any return required to be made under this Act or the Regulations; (b) gives any false answer, whether verbally or in writing, to any question or request for information asked or made in accordance with this Act; or (c) makes use of any fraud, art or contrivance or authorises the use of any such fraud, art or contrivance, shall be guilty of an offence and shall be liable on conviction to a penalty of 4 times the amount of land betterment charge which has been underpaid in consequence of the offence, or which would have been so underpaid if the offence had not been detected, and shall also be liable to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 5 years or to both. (2) Whenever in any proceedings under this section it is proved that any false statement or entry is made in any return furnished under this Act or any Regulations by or on behalf of any person or any book of accounts or other records maintained by or on behalf of any person, that person is presumed, until the contrary is proved, to have made that false statement or entry with intent to evade the land betterment charge.
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Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. Read the official text ↗
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