Singapore legislation
Section 45A
Section 45A
Surcharge on supplies forming part of arrangements causing loss of public revenue
(1)
Where —
a taxable person enters into a supply that the taxable person should have known was a part of an arrangement mentioned in section 20(2A); and
the taxable person makes a claim for credit for the input tax on the supply,then, without affecting the power of the Comptroller to make an assessment under section 45(1) or (2) on the basis that the taxable person is not entitled to credit for the input tax because of section 20(2A), a surcharge equal to 10% of the amount of the input tax is imposed on the taxable person and is recoverable by the Comptroller from the taxable person as a debt due to the Government.
(2)
Nothing in this section prevents the applicability of section 20(2A) to a case, or any action of the Comptroller under subsection (1) in a case, from being questioned in an appeal against an assessment mentioned in subsection (1) in accordance with Part 8.
(3)
Despite any objection under section 49 to or appeal under Part 8 lodged against an assessment of the Comptroller mentioned in subsection (1), the surcharge must be paid to the Comptroller —
within one month after the date a written notice of the surcharge is served in accordance with section 87(1) on the taxable person; and
in the manner stated in the notice.
(4)
The Comptroller may, in the Comptroller’s discretion, and subject to any term and condition (including the imposition of interest on the surcharge) as the Comptroller may impose, extend the time within which the payment of the surcharge is to be made.
(5)
The Comptroller may, for good cause, remit wholly or in part any surcharge payable to the Comptroller under this section.
(6)
If, upon any objection under section 49 to or appeal under Part 8 lodged against an assessment mentioned in subsection (1), the assessment is varied or annulled, then the surcharge is correspondingly increased, reduced or annulled (as the case may be), and —
if the surcharge is increased, subsections (1), (3), (4) and (5) apply to the increase in amount of the surcharge as they apply to the surcharge; or
if the surcharge is reduced or annulled and it has already been paid to the Comptroller, the amount of the reduction or the entire amount (including any interest paid to the Comptroller on the amount) must be refunded.