RPGT: New Section 15A – Deemed Assessment on the Amended Return

The Real Property Gains Tax Act 1976 Act is amended by inserting after section 15 the following section:

“Deemed Assessment on the Amended Return“

Section 15A. (1) Where a person has furnished an amended return in accordance with section 13A for a year of assessment, the Director General shall be deemed to have made, on the day on which the amended return is furnished, an assessment or additional assessment in respect of that person:-

1. in the amount of tax or additional tax payable on the chargeable gains; or
2. in the amount of tax which has been or would have been wrongly repaid,

the tax or additional tax and the chargeable gains being respective amounts as specified in the amended return.

Section 15A(2) For the purposes of this Act, where the Director General is deemed to have made an assessment or additional assessment under subsection (1):-

1. the amended return referred to in that subsection shall be deemed to be a notice of assessment or additional assessment; and
2. the deemed notice of assessment or additional assessment shall be deemed to have been served on the person on the day on which the Director General is deemed to have made the assessment or additional assessment.”.

Introduction

The proposed Section 15A is introduced as a consequential amendment related to the newly proposed Section 13A in the Real Property Gains Tax Act 1976.

It outlines the procedures and implications when a person furnishes an amended return for a year of assessment.

Key Points:

Furnishing Amended Return:

• Suppose a person submits an amended return in accordance with the newly proposed Section 13A, addressing corrections or adjustments to the original return.
• In that case, the Director General is deemed to have made an assessment or additional assessment.

Deemed Assessment on Furnishing Amended Return:

• On the day the amended return is furnished, the Director General is considered to have conducted an assessment or additional assessment.
• This assessment is in relation to:
  • The amount of tax or additional tax payable on the chargeable gains as specified in the amended return.
  • The amount of tax that has been or would have been wrongly repaid.

Tax or Additional Tax Amount:

• The tax or additional tax assessed is based on the figures provided in the amended return, addressing any changes to the original assessment.

Deemed Notice of Assessment:

• The amended return is treated as a deemed notice of assessment or additional assessment.
• This is a formal acknowledgement of the revised tax liabilities resulting from the changes made in the amended return.

Deemed Service of Notice:

• The deemed notice of assessment or additional assessment is considered to have been served on the person on the same day the Director General is deemed to have made the assessment.
• This emphasises the immediate acknowledgement of the revised tax status.

Tax Impact:

• The introduction of Section 15A streamlines the process of assessing amended returns, providing clarity on when the assessment is deemed to occur.
• Taxpayers should be aware that corrections or adjustments made in amended returns will lead to a reassessment of tax liabilities based on the provided information.

Important Note:

• The actual tax impact will depend on the nature of the amendments made in the return and the resulting changes to the assessed tax or additional tax.

This explanation is based on the proposed legislative changes and is for informational purposes.