On 24/05/2013,
you requested for the version in force on 24/05/2013
incorporating all amendments published on or before 24/05/2013.
The closest version currently available is that of 18/04/2013.
14M.
—(1) Where any person carrying on a hotel trade or business at any hotel premises proposes to carry out a project for any refurbishment of the hotel premises, he may apply to the Minister, or such person as he may appoint, on or before 30th June 2003 for that project (which shall be completed on or before 30th June 2006) to be approved for the purposes of claiming a deduction under this section in respect of expenditure incurred by him on the refurbishment project.
[21/2003]
(2) Where the Minister, or such person as he may appoint, considers it expedient in the public interest to do so, he may approve the refurbishment project subject to such terms and conditions as he may impose.
[32/99]
(3) Every approval given under this section shall specify —
(a)
the qualifying period during which the approved refurbishment project is to be carried out;
(b)
the qualifying expenditure and the maximum amount thereof to be allowed as a deduction under this section; and
(c)
a percentage, exceeding 100% but not exceeding 150%, of the qualifying expenditure to be allowed as a deduction under this section.
[32/99]
(4) Where in the basis period for any year of assessment the person has incurred any qualifying expenditure on the approved refurbishment project, he shall be allowed, on due claim, for a period of 5 years (consecutive or otherwise) a deduction against the income from his hotel trade or business computed in accordance with subsection (5).
[32/99]
(5) The amount of deduction under subsection (4) for any year of assessment shall be ascertained by the formula
where A is the percentage referred to in subsection (3)(c); and |
B is the amount of qualifying expenditure incurred. |
(6) No deduction shall be allowed under this section in respect of —
(a)
any expenditure which is not incurred during the qualifying period referred to in subsection (3)(a);
(b)
any expenditure which was incurred before 1st July 1998; and
(c)
any year of assessment relating to any basis period during which the hotel premises are not used for the purposes of a hotel trade or business of the person who incurs the qualifying expenditure.
[32/99]
(7) Where any person has been allowed a deduction under this section in respect of any qualifying expenditure, no deduction shall be allowed under any other provision of this Act in respect of the expenditure for which the deduction was allowed.
[32/99]
(8) Subject to subsection (9), as soon as a deduction is allowed under this section to a company resident in Singapore, an amount (referred to in this section as further deduction) computed in accordance with the formula
shall be credited to an account (referred to in this section as further deduction account) to be kept by the company for the purposes of this section, where A and B have the same meanings as in subsection (5).
[21/2003]
(9) Where the company is a transferor company within the meaning of section 37C(19) and where any amount of further deduction allowed under this section is transferred to a claimant company as part of the loss specified under section 37C(14)(b) —
(a)
the sum transferred shall not be credited to the further deduction account to be kept by the transferor company;
(b)
for the purposes of this section, upon the transfer of the sum under paragraph (a), the sum transferred shall be credited to the further deduction account to be kept by the claimant company; and
(c)
in relation to the sum transferred under paragraph (a), subsections (10) to (17) and (23) shall apply to the claimant company.
[21/2003]
(10) Where for any year of assessment the further deduction account of the company is in credit, the company shall —
(a)
debit from that account such amount as would have been the chargeable income had the further deduction not been allowed or the amount of the credit in that account, whichever is the less; and
(b)
credit the amount debited under paragraph (a) to an account to be called a tax exempt account which shall be kept by the company for the purposes of this section,
and any remaining balance in the further deduction account shall be carried forward to be used by the company in the first subsequent year of assessment when the company has chargeable income had the further deduction not been allowed, and so on for subsequent years of assessment until the credit in the further deduction account has been fully used.
[21/2003]
(11) Where the tax exempt account is in credit at the date on which any dividends are paid by the company out of the amount credited to that account, an amount equal to those dividends or to that credit, whichever is the less, shall be debited to the tax exempt account.
[21/2003]
(12) So much of the amount of any dividends so debited to the tax exempt account as is received by a shareholder of the company shall, if the Comptroller is satisfied with the entries in the account, be exempt from tax in the hands of the shareholder.
[21/2003]
(13) Any dividends debited to the tax exempt account shall be treated as having been distributed to the shareholders of the company or any particular class of the shareholders in accordance with the proportion of their shareholdings in the company.
[21/2003]
(14) Where an amount of dividends exempt from tax under this section has been received by a shareholder, if that shareholder is a company, any dividends paid by that company to its shareholders, to the extent that the Comptroller is satisfied that those dividends are paid out of that amount, shall be exempt from tax in the hands of those shareholders.
[21/2003]
(15) Notwithstanding subsections (12) and (14), no dividend paid on any share of a preferential nature shall be exempt from tax under this section in the hands of the shareholder.
[21/2003]
(16) Section 44 shall not apply to any dividends or part thereof which are exempt from tax under this section.
[21/2003]
(17) The company shall deliver to the Comptroller a copy of the tax exempt account made up to any date specified by him whenever called upon to do so by notice in writing.
[21/2003]
(18) During the qualifying period referred to in subsection (3)(a) or within 5 years after the date of completion of the approved refurbishment project, a person who has been allowed any deduction under this section shall not, without the written approval of the Minister or such person as he may appoint —
(a)
sell, lease out or otherwise dispose of any asset in respect of which a deduction has been allowed under this section;
(b)
cease to use the hotel premises or any part thereof for his hotel trade or business; or
(c)
sell, lease out or otherwise dispose of the hotel premises or any part thereof.
[32/99]
(19) Where any of the events referred to in subsection (18) occurs in the basis period for any year of assessment, the person shall be deemed to have derived an amount of income for that year of assessment equal to the total amount of deduction which has been allowed under this section in respect of the assets or any part of the hotel premises to which the event relates.
[32/99]
(20) Notwithstanding subsection (19), the Minister or such person as he may appoint may, subject to such terms and conditions as he may impose and upon any application by the person deemed to have derived income under that subsection, reduce the amount of income so deemed.
[32/99]
(21) Where any deduction allowed under this section is in respect of any capital expenditure incurred by a person on any machinery or plant and where at any time after 5 years from the date of completion of the approved refurbishment project any of the events referred to in section 20(1) occurs in respect of that machinery or plant, section 20(1) to (3) shall apply, with the necessary modifications, and a balancing allowance or a balancing charge shall be made to or, as the case may be, on that person for the year of assessment in the basis period for which that event occurs.
[32/99]
(22) For the purposes of subsection (21) —
(a)
any reference in section 20(1) to allowances made under section 19 or 19A shall be read as a reference to a deduction allowed under this section;
(b)
the amount of the capital expenditure on the provision of the machinery or plant still unallowed as at the time of the occurrence of the event shall be ascertained by the formula
where C is the amount of capital expenditure incurred on the provision of the machinery or plant; and |
D is the number of years of assessment for which any deduction has been allowed under this section in respect of that capital expenditure; and |
(c)
notwithstanding anything in section 20(3), in no case shall the amount on which a balancing charge is made on a person exceed an amount computed in accordance with the formula
where C and D have the same meanings as in paragraph (b).
[32/99]
(23) Where it appears to the Comptroller that in any year of assessment —
(a)
any deduction allowed under this section; or
(b)
any dividend exempted in the hands of any shareholder under this section,
ought not to have been so allowed or exempted, as the case may be, the Comptroller may, in the year of assessment or within 6 years (if the year of assessment is 2007 or a preceding year of assessment) or 4 years (if the year of assessment is 2008 or a subsequent year of assessment) after the expiration thereof —
(i)
make such assessment or additional assessment upon the company or any such shareholder as may be necessary in order to make good any loss of tax; or
(ii)
direct the company to debit its tax exempt account with such amount as the circumstances require.
[32/99; 53/2007]