Singapore legislation
Clause 52
Clause 52
New section 45AA
The principal Act is amended by inserting, immediately after section 45A, the following section:“Tax deemed withheld and recoverable from person in breach of condition imposed under section 13(4)45AA.—
Where a person has contravened any condition imposed by the Minister pursuant to a notification made under section 13(4) (whether a condition precedent or a condition subsequent), the amount of tax which, but for that notification, would have been deductible by the person from payments made by it to a non-resident person under section 45 or 45A —
shall be deemed to have been deducted from those payments;
shall be a debt due from the first-mentioned person to the Government; and
shall be recoverable in the manner provided by section 89.(2) The amount recoverable under subsection (1) shall be payable at the place stated in a notice served by the Comptroller on the person within one month after the service of the notice.(3) The Comptroller may, in his discretion and subject to such conditions (including the imposition of interest) as he may impose, extend the time limit within which payment under subsection (2) is to be made.(4) If the amount recoverable under subsection (1) is not paid to the Comptroller —
within the period referred to in subsection (2) or such further period as may be allowed under subsection (3), a sum equal to 5% of such amount shall be payable; and
within 30 days after the time specified in paragraph (a), an additional penalty of 1% of such amount shall be payable for each completed month that such amount remains unpaid, but the total additional penalty under this paragraph shall not exceed 15% of such amount.(5) The penalty shall be recoverable in the manner provided in section 89.(6) The Comptroller may for any good cause remit the whole or any part of the penalty payable under subsection (4).(7) The Minister may, subject to such conditions as he may determine, remit the whole or any part of the amount recoverable under subsection (1).(8) If any condition referred to in subsection (7) is breached, then the amount remitted shall be a debt due from the person granted the remission to the Government and shall be recoverable in the manner provided by section 89; and subsections (2) to (6) shall apply accordingly.”.