Section 45A: Derogation

45A. Derogation (1) Notwithstanding this Act or any other enactment, a deed of transfer, for the construction of a residential building, of a lot excised from a larger portion of land, or a portion of land on which exists a house, by a partnership or company to a worker who is employed or who, immediately before his retirement, was employed by the vendor shall, where the deed of transfer contains a declaration from— (a) the Fund that the partnership or company is registered with it; (b) the partnership or company that the transferee is, or was immediately before his retirement, in its employment and that it has not effected on or after 1 July 1986 any transfer of land to the worker, be exempt from payment of the duty and taxes leviable under Parts II, III and V of the Act and the duty leviable under the Transcription and Mortgage Act. (2) Subsection (1) shall apply to— (a) the heirs of a deceased worker collectively (“les ayants droits”) as they would have applied to a worker referred to in that subsection; or (b) the transfer of land by a partnership or company forming part of the same group as the employer of the worker. (3) A deed of transfer referred to in the Eighth Schedule shall be exempt from duty or taxes leviable under the appropriate Part or Parts specified in that Schedule. (4) For the purpose of section (1)— “Fund” means the Sugar Insurance Fund; “partnership or company” means a partnership or company engaged in the milling of sugar or the planting of sugar canes and which is registered with the Fund; “residential building” includes a lot in a building which is the subject of a duly registered and transcribed deed witnessing a règlement de copropriété; “worker” has the same meaning as in the Employment Rights Act. (5) Notwithstanding this Act or any other enactment, where a deed witnessing— (a) the transfer of a plot of freehold land during the period 1 January 2009 to 31 December 2010 to a company registered under section 161A (27) of the Income Tax Act for the construction of a building thereon for sale, renting or its own use; or L4 – 26 (1) [Issue 9] Land (Duties and Taxes) Act (b) the transfer, on or before 30 June 2011, by a company registered under section 161A (27) of the Income Tax Act, of a plot of freehold land together with a building or part of a building thereon or by way of a vente à terme under article 1601-2, or a vente en l’état futur d’achèvement under article 1601-3, of the Code Civil Mauricien, the construction of which has started on or after 1 January 2009, contains a declaration to the effect that the company is registered under section 161A (27) of the Income Tax Act and is accompanied by the certificate of registration issued under section 161A (31) of the Income Tax Act, it shall, subject to subsection (6), be exempted from the duty and tax leviable under Parts II and III. (6) The exemption referred to in subsection (5) shall be granted only in respect of the land or part of that land used for the construction of the building. (6A) (a) Subject to paragraph (b), subsections (5) to (8) shall apply to leasehold land. (b) The exemption from the duty and tax leviable under Parts II and III shall not apply in respect of any transfer referred to in subsection (5) (b) where the building or part of the building is on State land. (7) Where the Registrar-General is notified under section 161A (33) of the Income Tax Act that the company has failed to satisfy the condition specified in section 161A (28) (b), h ion of the building. (6A) (a) Subject to paragraph (b), subsections (5) to (8) shall apply to leasehold land. (b) The exemption from the duty and tax leviable under Parts II and III shall not apply in respect of any transfer referred to in subsection (5) (b) where the building or part of the building is on State land. (7) Where the Registrar-General is notified under section 161A (33) of the Income Tax Act that the company has failed to satisfy the condition specified in section 161A (28) (b), he shall, by written notice sent by registered post, claim the duty and taxes exempted under subsection (5) together with a penalty equal to 20 per cent of the amount of duty and tax exempted from— (a) in the case of a transfer under subsection (5) (a), the transferee; or (b) in the case of a transfer under subsection (5) (b), the transferor. (8) Where land planned to be used for a construction project is not fully utilised, the Registrar-General shall claim the duty and taxes exempted under subsection (5) in relation to that part of the unutilised land in the same manner as is specified in subsection (7) together with a penalty equal to 20 per cent of the amount of duty and tax exempted. (9) Notwithstanding this Act or any other enactment, but subject to subsection (9A), a deed witnessing— (a) the transfer of a portion of freehold land during the period from 1 January 2012 to 30 June 2019, to a company registered under section 161A (46) of the Income Tax Act, for the construction of a housing estate thereon of at least 5 residential units, shall be exempted from payment of land transfer tax under this Act; (b) the transfer or vente en état futur d'achèvement (VEFA) by a company under paragraph (a), of a housing unit forming part of a housing estate referred to in paragraph (a), the value of which does not exceed— [Issue 9] L4 – 26 (2) Revised Laws of Mauritius (i) 2.5 million rupees, where the project was registered under section 161A (46) of the Income Tax Act during the year 2012; or (ii) 6 million rupees, where the project is registered under section 161A (46) of the Income Tax Act during the period 1 January 2013 to 30 June 2019, shall be exempted from payment of land transfer tax under this Act, provided the transfer is made on or before 30 June 2020 and the sale is made to a citizen of Mauritius. (9A) Subsection (9) shall not apply in relation to the transfer of an immovable property on Pas Géométriques or acquired under the Economic Development Board (Real Estate Development Scheme) Regulations 2007, the Economic Development Board (Property Development Scheme) Regulations 2015 or the Economic Development Board (Invest Hotel Scheme) Regulations 2015. (10) Where the Registrar-General is notified, under section 161A (47) of the Income Tax Act, that the company referred to in subsection (9) (a) fails to comply with the conditions specified in section 161A (46) of the Income Tax Act, he shall, by written notice sent by registered post, claim the tax referred to in subsection (9) (b), together with a penalty of 20 per cent of the amount of tax exempted. [S. 45A inserted by s. 3 (b) of Act 19 of 1986 w.e.f. 1 July 1986; s. 4 (4) of Act 17 of 1991 w.e.f. 1 July 1991; s. 12 (b) of Act 25 of 1994 w.e.f. 27 July 1994; s. 4 (b) of Act 17 of 1995 w.e.f. 12 August 1995; s. 5 of Act 9 of 1997 w.e.f. 30 July 1999; s. 5 of Act 10 of 1998 w.e.f. 21 July 1988; s. 11 (j) of Act 18 of 1999 w.e.f. 1 August 1999; s. 12 (c) of Act 18 of 2003 w.e.f. 21 July 2003; rred to in subsection (9) (b), together with a penalty of 20 per cent of the amount of tax exempted. [S. 45A inserted by s. 3 (b) of Act 19 of 1986 w.e.f. 1 July 1986; s. 4 (4) of Act 17 of 1991 w.e.f. 1 July 1991; s. 12 (b) of Act 25 of 1994 w.e.f. 27 July 1994; s. 4 (b) of Act 17 of 1995 w.e.f. 12 August 1995; s. 5 of Act 9 of 1997 w.e.f. 30 July 1999; s. 5 of Act 10 of 1998 w.e.f. 21 July 1988; s. 11 (j) of Act 18 of 1999 w.e.f. 1 August 1999; s. 12 (c) of Act 18 of 2003 w.e.f. 21 July 2003; s. 12 (i) of Act 28 of 2004 w.e.f. 26 August 2004; s. 19 (r) of Act 15 of 2006 w.e.f. 7 August 2006; s. 19 (g) of Act 17 of 2007 w.e.f. 22 August 2007; s. 11 (b) of Act 1 of 2009 w.e.f. 1 January 2009; s. 24 (c) of Act 14 of 2009 w.e.f. 30 July 2009; s. 9 of Act 37 of 2011 w.e.f. 15 December 2011; s. 11 (b) of Act 26 of 2013 w.e.f. 1 January 2014; amended by s. 32 (e) of Act 9 of 2015 w.e.f. 14 May 2015; s. 30 (c) and (d) of Act 18 of 2016 w.e.f. 7 September 2016.] 46. — [S. 46 repealed and replaced by s. 9 (c) Act 56 of 1985 w.e.f. 9 November 1985; repealed by s. 19 (t) of Act 15 of 2006 w.e.f. 10 January 2007.]