Section 14: Incentives on implementation of schemes

14. Incentives on implementation of schemes (1) Notwithstanding the Land (Duties and Taxes) Act, where a milling company or a power company having the Trust as a shareholder implements the schemes specified in section 29 (1) (c) (ii), (d) or (f) or a planter implements the scheme specified in section 29 (1) (d), the deed containing the authorisation for land conversion under Part V in furtherance of the schemes and witnessing the transfer of land shall be subject to the tax leviable under Part III of the Land (Duties and Taxes) Act at the rate of 5 per cent. [Issue 9] S49 – 12 Revised Laws of Mauritius (2) Notwithstanding this Act and the Land (Duties and Taxes) Act, where a planter for the purposes of the VRS or the ERS sells land to a person to the extent required and uses the proceeds of the sale for the implementation of the VRS or the ERS and thereafter the person acquiring the land subsequently converts and sells the land— (a) the deed witnessing the transfer of the land by the planter shall be exempted from payment of the duty or tax leviable under Parts II and III of the Land (Duties and Taxes) Act; (b) no land conversion tax under Part V shall be payable on the land converted; (c) the deed containing the authorisation for land conversion under Part V and witnessing the transfer of land by the person shall be subject to the tax leviable under Part III of the Land (Duties and Taxes) Act at the rate of 5 per cent. (3) Where— (a) in the implementation of the schemes specified in section 29 (1) (c) (ii), (d) or (f), a milling company, or a power company, having the Trust as shareholder, or a planter; (b) a person selling land pursuant to subsection (2), (5), (6) or (8); (c) a person converting land pursuant to section 11 (3) or (13); (d) a specified entity; (e) the Trust or a body controlled by it, has received the letter of intent under section 6 of the Morcellement Act, the company, the planter, the person, the specified entity, or the Trust or the body controlled by the Trust, may, after furnishing a bank guarantee equivalent to the estimated value as the case may be, of the infrastructural works, referred to in that section, enter into an agreement to sell and receive payment not exceeding the amount covered by the bank guarantee. (4) Notwithstanding subsection (2) (a), the exemption shall not apply unless the deed contains a certificate from the Mauritius Cane Industry Authority to the effect that the transaction is in the context of the VRS or the ERS. (5) Notwithstanding the Land (Duties and Taxes) Act, where a person intends to make an offer under section 23 or 23A but is not owner of land, he may acquire land to the extent required by him for the purposes of implementing a VRS or an ERS from another person who owns land and is implementing a VRS under section 23 or an ERS under section 23A and— (a) the deed witnessing the transfer of land by the other person shall be exempted from the payment of the duty or tax leviable under Parts II and III of the Land (Duties and Taxes) Act; (b) the deed witnessing the transfer of land by the person and containing the authorisation for land conversion under Part V shall be subject to the tax leviable under Part III of the Land (Duties and Taxes) Act at the rate of 5 per cent. S49 – 13 [Issue 9] Sugar Industry Efficiency Act (6) Notwithstanding the Land (Duties and Taxes) Act, where one or more persons intend to make an offer under section 23 or 23A and are owners of land, they may agree I and III of the Land (Duties and Taxes) Act; (b) the deed witnessing the transfer of land by the person and containing the authorisation for land conversion under Part V shall be subject to the tax leviable under Part III of the Land (Duties and Taxes) Act at the rate of 5 per cent. S49 – 13 [Issue 9] Sugar Industry Efficiency Act (6) Notwithstanding the Land (Duties and Taxes) Act, where one or more persons intend to make an offer under section 23 or 23A and are owners of land, they may agree that one or more of them shall acquire from one or more of the other persons, land to the extent required for the purposes of implementing a VRS under section 23 or an ERS under section 23A and— (a) the deed witnessing the transfer of land by the other persons shall be exempted from the payment of the duty or tax leviable under Parts II and III of the Land (Duties and Taxes) Act; (b) the deed witnessing the transfer of land by the persons and containing the authorisation for land conversion under Part V shall be subject to the tax leviable under Part III of the Land (Duties and Taxes) Act at the rate of 5 per cent. (7) Notwithstanding the Land (Duties and Taxes) Act, where a person sells land to a milling company, or a power company, having the Trust as a shareholder and such land is converted pursuant to section 29 (1) (c) (ii) or (f), the deed witnessing the transfer of the land shall be exempted from the payment of the duty or tax leviable under Parts II and III of the Land (Duties and Taxes) Act. (8) Notwithstanding the Land (Duties and Taxes) Act, where— (a) any person and the Trust or a body controlled by the Trust are shareholders of a milling company or a power company; (b) the milling company or the power company, as the case may be, has, directly or through a company or société, wholly owned by one such or more milling companies or power companies, implemented after 1 July 1997 or implements the scheme referred to in section 29 (1) (c) (ii) or (f); (c) the person or the Trust or the body controlled by the Trust intends to sell its own land or land acquired from another person to recoup the costs in respect of the scheme referred to in section 29 (1) (c) (ii) or (f); and (d) the costs referred to in paragraph (c) are to be recouped by the milling company or the power company or by its shareholders in proportion to their respective shareholding in the milling company or the power company, as the case may be— (i) the deed witnessing the transfer of land by the other person referred to in paragraph (c) shall be exempted from the payment of the duty or tax leviable under Parts II and III of the Land (Duties and Taxes) Act; (ii) the deed witnessing the transfer of land by the person or the Trust or the body controlled by the Trust and containing the authorisation for land conversion under Part V shall be subject to the tax leviable under Part III of the Land (Duties and Taxes) Act at the rate of 5 per cent. [Issue 9] S49 – 14 Revised Laws of Mauritius (9) Where a person converts and sells land pursuant to section 29 (1) (i), the deed containing the authorisation for land conversion and witnessing the transfer of the land shall be exempted from the payment of— (a) the tax leviable under Part III of the Land (Duties and Taxes) Act; (b) — (c) the transcription duty leviable under the Transcription and Mortgage Act. (10) Notwithstanding the Morcellement Act, where the person referred to in subsection (9) applies for and is issued with a morcellem (9) Where a person converts and sells land pursuant to section 29 (1) (i), the deed containing the authorisation for land conversion and witnessing the transfer of the land shall be exempted from the payment of— (a) the tax leviable under Part III of the Land (Duties and Taxes) Act; (b) — (c) the transcription duty leviable under the Transcription and Mortgage Act. (10) Notwithstanding the Morcellement Act, where the person referred to in subsection (9) applies for and is issued with a morcellement permit in respect of the land referred to in that subsection, he shall be exempted from payment of the fees payable under section 9 of that Act. [S. 14 amended by s. 5 of Act 26 of 2001; s. 27 (c) of Act 20 of 2002 w.e.f. 10 August 2002; s. 28 (b) of Act 14 of 2005 w.e.f. 21 April 2005; s. 29 (e) of Act 15 of 2006 w.e.f. 7 August 2006; s. 23 (a) of Act 1 of 2009 w.e.f. 16 April 2009; s. 4 of Act 15 of 2013 w.e.f. 29 June 2013; s. 6 of Act 34 of 2016 w.e.f. 1 January 2017.] (S. 14 came into operation on 17 September 2001.)