FRINGE BENEFITS TAX ASSESSMENT ACT 1986

PART XII - INTERPRETATION  

SECTION 141   HOUSING LOANS, PRESCRIBED INTERESTS IN LAND OR STRATUM UNITS AND PROPRIETARY RIGHTS IN RESPECT OF DWELLINGS  

141(1)   [Loans taken to be housing loans]  

For the purposes of this Act, where:


(a) a loan is made to, and used by, a person (whether in his or her own right or jointly with his or her spouse) wholly:


(i) to enable the person to acquire a prescribed interest in land on which a building constituting or containing a dwelling was subsequently to be constructed or to acquire a prescribed interest in land and construct, or complete the construction of, such a building on the land;

(ii) to enable the person to construct, or complete the construction of, a building constituting or containing a dwelling on land in which the taxpayer held a prescribed interest;

(iii) to enable the person to acquire a prescribed interest in land on which there was a building constituting or containing a dwelling;

(iv) to enable the person to acquire a prescribed interest in a stratum unit in relation to a dwelling;

(v) to enable the person to extend a building constituting or containing a dwelling, being a building constructed on land in which the taxpayer held a prescribed interest, by adding a room or part of a room to the building or the part of the building containing the dwelling, as the case may be;

(vi) in a case where the person held a prescribed interest in a stratum unit in relation to a dwelling - to enable the person to extend the dwelling by adding a room or part of a room to the dwelling;

(vii) to enable the person to acquire a proprietary right in respect of a dwelling, being a flat or a home unit; or

(viii) to enable the person to repay a loan that was made to, and used by, the person wholly for a purpose mentioned in a preceding subparagraph of this paragraph; and


(b) at the time the loan was made, the dwelling was used or proposed to be used as the person's usual place of residence;

the loan shall be taken to be a housing loan relating to the dwelling.

141(2)   [Prescribed interest, proprietary right, non-separated loan]  

For the purposes of this Act:


(a) where:


(i) a person acquires, holds or held an estate in fee simple in land or in a stratum unit or 2 or more persons acquire, hold or held such an estate in land or in a stratum unit as joint tenants or tenants in common;

(ii) a person acquires, holds or held an interest in land or in a stratum unit as lessee or licensee, or 2 or more persons acquire, hold or held jointly an interest in land or in a stratum unit as lessees or licensees, under a lease or licence, and the Commissioner is satisfied that the lease or licence gives or gave reasonable security of tenure to the lessee or licensee, or to the lessees or licensees, for a period of, or for periods aggregating, not less than 10 years;

(iii) a person acquires, holds or held an interest in land or in a stratum unit as purchaser of an estate in fee simple in the land or in the stratum unit, or 2 or more persons acquired, hold or held an interest in land or in a stratum unit as purchasers of such an estate in the land or in the stratum unit as joint tenants or tenants in common, under an agreement that provides or provided for payment of the purchase price, or a part of the purchase price, to be made at a future time or by instalments; or

(iv) a person acquires, holds or held an interest in land or in a stratum unit as purchaser, or 2 or more persons acquire, hold or held jointly an interest in land or in a stratum unit as purchasers, of the right to be granted a lease of the land or of the stratum unit under an agreement that provides or provided for payment of the purchase price, or a part of the purchase price, for the lease to be made at a future time or by instalments and the Commissioner is satisfied that the lease will give or gave reasonable security of tenure, to the lessee or lessees for a period of, or for periods aggregating, not less than 10 years;
that person or those persons shall be taken to acquire or hold, or to have held, as the case may be, a prescribed interest in that land or in that stratum unit, as the case requires; and


(b) where a person acquires, holds or held, or 2 or more persons acquire, hold or held jointly, a right of occupancy of a dwelling, being a flat or a home unit, arising by virtue of the acquiring or holding of shares, or by virtue of a contract to purchase shares, in a company that owns or owned the building that contains the flat or home unit, that person, or those persons, as the case requires, shall be taken to acquire or hold, or to have held, as the case may be, a proprietary right in respect of the dwelling;


(c) where:


(i) a loan that but for this paragraph would be a housing loan relating to a dwelling is made by a person (in this paragraph referred to as ``the lender'' ) to another person (in this paragraph referred to as ``the borrower'' );

(ii) the lender does not maintain an account in relation to the loan that is separate and apart:

(A) from any account kept by the lender in relation to any moneys deposited with the lender or applied by the lender on behalf of the borrower otherwise than for the purpose of repaying the loan, in whole or in part, or of paying, in whole or in part, interest that has accrued or will accrue in respect of the loan; and

(B) from any account kept by the lender in relation to any other loan made by the lender to the borrower;
the loan referred to in subparagraph (i) is not a housing loan relating to a dwelling.

141(3)   [Section exclusive]  

For the purposes of this Act, a loan shall not be taken to be a housing loan relating to a dwelling except as provided in this section.




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