18.—(1) Subject to this section, in sections 16 and 17 “industrial building or structure” means a building or structure in use —
(a)
for the purposes of a trade carried on in a mill, factory or other similar premises;
(b)
for the purposes of a transport, dock, water or electricity undertaking;
(c)
for the purposes of a trade which consists in the manufacture of goods or materials or the subjection of goods or materials to any process;
(d)
for the purposes of a trade which consists in the storage of goods or materials which are to be used in the manufacture of other goods or to be subjected, in the course of a trade, to any process;
(e)
for the purposes of a trade which consists of the storage of goods or materials on their arrival in Singapore;
(f)
for the purposes of a trade which consists in the working of a plantation;
(g)
for the purposes of a trade which consists in the working of a mine or other source of mineral deposits of a wasting nature;
(h)
for the purposes of a trade in intensive pig and poultry production as may be approved by the Minister or such other person as he may appoint;
(i)
by a research and development organisation in carrying out research and development activities for any manufacturing trade or business;
(j)
for the purposes of a hotel on the island of Sentosa and approved by the Minister or such person as he may appoint (referred to in this section as a Sentosa hotel);
(k)
for the purposes of a project for the promotion of the tourist industry (other than a hotel) in Singapore and approved by the Minister or such person as he may appoint subject to such conditions as he may impose; or
(l)
for prescribed purposes and where such building or structure has been approved by the Minister or such person as he may appoint,
and includes any building or structure provided by the person carrying on such a trade or undertaking for the welfare of workers employed in that trade or undertaking and in use for that purpose, but does not include a building or structure in respect of which a deduction is prescribed under section 14(1)(h).
[26/73; 28/80; 1/82; 1/88; 3/89; 2/92]
(1A) A building or structure shall not be deemed, by reason only of its falling or having fallen into temporary disuse, to have thereby ceased altogether to be used for one of the purposes specified in subsection (1) if, immediately prior to falling into such temporary disuse, it was in use for such a purpose and if, during the period of such temporary disuse, it is constantly maintained in readiness to be brought back into use for such a purpose; but if, in such circumstances, the building or structure at any time during disuse ceases to be ready for use for any of the said purposes, or if at any time, for any reason, the disuse of the building or structure can no longer be reasonably regarded as temporary, then and in any such case, the building or structure shall be deemed to have ceased, on the commencement of the period of disuse, to be used for any of the purposes specified in subsection (1).
(2) Subsection (1) shall apply in relation to a part of a trade or undertaking as it applies to a trade or undertaking.
(2A) Where part only of a trade or undertaking complies with the conditions set out in subsection (1), a building or structure shall not, by virtue of subsection (2), be an industrial building or structure unless it is in use for the purposes of that part of that trade or undertaking.
(3) Notwithstanding anything in subsection (1), (1A), (2) or (2A), “industrial building or structure” does not include any building or structure in use as, or as part of, a dwelling-house, retail shop, showroom, hotel (other than a Sentosa hotel) or office or for any purpose ancillary to the purposes of a dwelling-house, retail shop, showroom, hotel (other than a Sentosa hotel) or office.
[1/82]
(3A) Subsection (3) shall not apply to, or to part of, a building or structure which was constructed for occupation by, or for the welfare of, persons employed on, or in connection with the growing and harvesting of the crops on, a plantation, if the building or structure is likely to have little or no value to the person carrying on the trade when the plantation is no longer worked.
(4) Where part of a building or structure is, and part thereof is not, an industrial building or structure, and the capital expenditure which has been incurred on the construction of the second mentioned part is not more than one-tenth of the total capital expenditure which has been incurred on the construction of the whole building or structure, the whole building or structure and every part thereof shall be treated as an industrial building or structure.
(5) In sections 16 and 17 —
“relevant interest” means, in relation to any expenditure incurred on the construction of a building or structure, the interest in that building or structure to which the person who incurred the expenditure was entitled when he incurred it;
“residue of expenditure” shall be the amount of the capital expenditure incurred in the construction of a building or structure reduced by —
(a)
the amount of any initial allowance made;
(b)
any annual allowance made; and
(c)
any balancing allowances granted,
and increased by any balancing charges made.
(6) For the purpose of computing the residue of expenditure, there shall be written off an amount of 3% of the expenditure in respect of any year in which no initial or annual allowance has been made.