Section 39
Reduction of tax for approved royalties, fees or contributions
of Economic Expansion Incentives (Relief from Income Tax) Act 1967
(1)
Despite section 43(1) of the Income Tax Act 1947, the Minister may, subject to subsection (2), if he or she is satisfied that it is expedient in the public interest to do so, by an endorsement to that effect on the approved royalties, fees or contributions certificate, exempt from tax or authorise that tax at such concessionary rate as specified in the certificate be levied and paid upon any approved royalties, fees or contributions received by a non-resident person.
(2)
Where —
on or after 19 April 2016, a company contravenes section 38(2) or any condition under section 37(3); and
the Minister is of the view that it is in the public interest to do so,the Minister may revoke the approval under section 37(3)(a).
(3)
In subsection (2), the approval to be revoked, in the case of a contravention of section 38(2), is the approval of those royalties, fees or contributions that are payable under the agreement or arrangement that is the subject of the contravention.
(4)
Where an approval of any royalties, fees or contributions is revoked under subsection (2), the amount of tax which, but for subsection (1), would have been deductible by the company from the royalties, fees or contributions paid by it to the non-resident person under section 45A of the Income Tax Act 1947 —
is considered to have been deducted from the royalties, fees and contributions;
is a debt due from the company to the Government; and
is, with the prior sanction of the Minister, recoverable in the manner provided by section 89 of the Income Tax Act 1947.
(5)
The Minister for Finance may waive all or a part of any debt due from a company under subsection (4), if the Minister for Finance is satisfied that the company did not knowingly or intentionally contravene —
section 38(2); or
the condition imposed under section 37(3),as the case may be.
(6)
A reference in subsections (2), (3) and (4) to an approval under section 37(3)(a) is, in the case of an approval given under section 61 of this Act as in force before 24 February 2015, a reference to a certificate under that section as in force immediately before that date.[64