In forceAmended2020 Revised Edition

Contents

Economic Expansion Incentives (Relief from Income Tax) Act 1967 · 2020 Revised Edition · Part 7 · Royalties, Fees and Development Contributions

40G. Recovery of tax

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Amended

Last amended by an amending law of 2023.

(1)

Where the approval for an activity is revoked under section 40E(1)(a), 40F(1) or 61, the amount of tax that, but for section 40B(5) or (6), would have been deductible by the company from the royalties, fees or contributions payable by it to a non‑resident person under section 45A of the Income Tax Act 1947 —

(a)

is considered to have been deducted from any royalties, fees and contributions payable from and including the date mentioned in section 40E(1)(a), 40F(1) or 61(3), as the case may be;

(b)

is a debt due from the company to the Government; and

(c)

is, with the prior sanction of the Minister, recoverable in the manner provided by section 89 of the Income Tax Act 1947.

(2)

The Minister charged with the responsibility for finance may waive all or a part of any debt due from a company under subsection (1) that arises from the revocation of any approval under section 40F(1), if that Minister is satisfied that the company did not knowingly or intentionally contravene the condition mentioned in section 40F(1).