Value-Added Tax Act, 1972
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Special provisions in relation to the delivery of immovable goods. |
4.—(1) (a) This section applies to immovable goods— | |
(i) which have been developed by or on behalf of the person delivering them, or | ||
(ii) in respect of which the person delivering them was, or would, but for the operation of section 3 (5) (b) (iii), have been at any time entitled to claim a deduction under section 12 for any tax borne or paid in relation to a delivery or development of them. | ||
(b) In this section “interest”, in relation to immovable goods, means an estate or interest therein which, when it was created, was for a period of at least ten years but does not include a mortgage, and a reference to the disposal of an interest includes a reference to the creation of an interest. | ||
(2) Subject to section 2 (2), paragraphs (c), (d), (e) and (f) of section 3 (1), section 19 (2) and subsections (3), (4) and (5), a delivery of immovable goods shall be deemed, for the purposes of this Act, to take place if, but only if, a person having an interest in immovable goods to which this section applies disposes, as regards the whole or any part of those goods, of that interest or of an interest which derives therefrom. | ||
(3) (a) Subject to paragraph (b), where a person having an interest in immovable goods to which this section applies surrenders possession of those goods or of any part thereof in such circumstances that the surrender does not constitute a delivery of the goods for the purposes of subsection (2), the surrender shall be deemed, for the purposes of section 3 (1) (f), to be an appropriation of the goods or of the part thereof, as the case may be, for a purpose other than the purpose of his business. | ||
(b) This subsection shall not apply to— | ||
(i) any such surrender of possession made in accordance with an agreement for the leasing or letting of the goods if the person surrendering possession is chargeable to tax in respect of the rent or other payment under the agreement, or | ||
(ii) a surrender in connection with a transfer which, in accordance with section 3 (5), is declared, for the purposes of this Act, not to be a delivery. | ||
(4) Where a person having an interest in immovable goods to which this section applies disposes, as regards the whole or any part of those goods, of an interest which derives from that interest in such circumstances that he retains the reversion on the interest disposed of he shall, in relation to the reversion so retained, be deemed, for the purposes of section 3 (1) (f), to have made an appropriation of the goods or of the part thereof, as the case may be, for a purpose other than the purpose of his business. | ||
(5) Where an accountable person disposes of an interest in immovable goods to which this section applies or carries out any development in relation to such immovable goods and in connection with that disposal or carrying out of development some other person who would not, apart from this subsection, be regarded as an accountable person, disposes of an interest in relation to the goods concerned— | ||
(a) that other person shall, in relation to the disposal by him, be deemed to be an accountable person, and | ||
(b) the disposal shall be deemed to be a delivery, made in the course of business, of goods which that other person has developed. | ||
(6) Notwithstanding anything in this section or in section 2 tax shall not be charged on the delivery of immovable goods— | ||
(a) in relation to which a right in favour of the person making the delivery to a deduction under section 12 in respect of any tax borne or paid on the delivery or development of the goods did not arise and would not, apart from section 3 (5) (b) (iii), have arisen, or | ||
(b) which had been occupied before the specified day and had not been developed between that date and the date of the delivery. | ||
(7) The provisions of section 8 (3) shall not apply in relation to a person who makes a delivery of goods to which this section applies. |