Singapore legislation
Clause 13
of Economic Expansion Incentives (Relief from Income Tax) (Amendment) Bill
Clause 13
Repeal and re-enactment of section 97ZH and new section 97ZHA
Section 97ZH of the principal Act is repealed and the following sections substituted therefor:“Prohibition against selling, leasing out or disposing of qualifying equipment97ZH.—
Except as permitted under subsection (2), a company must not sell, lease (except to the project company) or otherwise dispose of any qualifying equipment in respect of which an IIA has been given to the company, during the qualifying period of the equipment and within 2 years after the end of such qualifying period.(2) Subsection (1) does not apply if the company obtains the written approval of the Minister for the sale, lease or disposal.Recovery of IIA97ZHA.—
Where a company has contravened section 97ZH(1) or failed to comply with any term or condition specified in the approval letter issued to the company, an amount equal to the whole of the IIA given in respect of a qualifying equipment must be recovered in the following manner:
where the IIA given had been credited to the normal IIA account —
the amount of the IIA must be deducted from that account; and
where the credit in that account is insufficient to enable full recovery of the IIA, an assessment or additional assessment in respect of the shortfall must, subject to section 74 of the Income Tax Act (Cap. 134), be made upon the company;
where the IIA given had been credited to the concessionary IIA account —
the amount of the IIA must be deducted from that account; and
where the credit in that account is insufficient to enable full recovery of the IIA, an assessment or additional assessment in respect of the shortfall must, subject to section 74 of the Income Tax Act, be made upon the company.(2) The Minister may waive, wholly or partly, the recovery of the IIA under subsection (1).”.