Singapore legislation
Section 70
of Economic Expansion Incentives (Relief from Income Tax) Act
Section 70
Prohibition to sell, lease out or dispose of assets
(1)
During its qualifying period or within 2 years after the end of its qualifying period, a company shall not, without the written approval of the Minister, sell, lease out or otherwise dispose of any assets in respect of which an investment allowance has been given.
(2)
Where during its qualifying period, or within 2 years after the end of its qualifying period, a company has sold, leased out or otherwise disposed of any assets in respect of which an investment allowance has been given, an amount equal to the aggregate of the investment allowance given in respect of that asset shall be recovered in the following manner:
where the investment allowance given had been credited to the normal investment allowance account —
the amount shall be deducted from that account; and
where that account is insufficient to give full effect to the recovery, an assessment or additional assessment in respect of the amount unrecovered shall be made upon the company or any shareholder of the company and the tax exempt account, kept in accordance with section 53(as made applicable by section 72), shall be debited accordingly; and
where the investment allowance given had been credited to the concessionary investment allowance account —
the amount shall be deducted from that account; and
where that account is insufficient to give full effect to the recovery, an assessment or additional assessment in respect of the amount unrecovered shall be made upon the company or any shareholder of the company and the tax exempt account, kept in accordance with section 53 (as made applicable by section 72), shall be debited accordingly.
(3)
Notwithstanding subsection (2), the Minister may waive wholly or partly the recovery of the investment allowance.