Ng Chiew Yen and Keith Tan Kai Wen sent to jail for cheating IRAS

[firehyrant]

Mother and son jailed for lying to Iras in first prosecution of ‘99-to-1’ property purchase scheme​

Ng Chiew Yen and her son Keith Tan Kai Wen arriving at the State Courts on Sept 20, 2024.ST PHOTO: KELVIN CHNG

Andrew Wong
UPDATED FEB 28, 2025, 10:07 PM

SINGAPORE – A mother and son pair formulated a plan to try and abuse a loophole to avoid paying a hefty sum in stamp duty for a condominium apartment.

When auditors from the tax office came knocking, the pair doubled down on their lies by providing false information to the officers.

They also deleted messages exchanged on their smartphones that contained their plan from the outset, which was to avoid paying the additional buyer’s stamp duty (ABSD).

On Feb 28, the mother, Ng Chiew Yen, 56, and her son, Keith Tan Kai Wen, 26, each pleaded guilty to two charges of providing false and misleading information to the taxman.

They were both sentenced to two weeks’ jail.

This is the first prosecution involving an Inland Revenue Authority of Singapore (Iras) audit into a “99-to-1” purchase arrangement.

This scheme has been used by some property buyers to reduce the rightful ABSD payable on the purchase of a residential property.

 

[eatshitndie]

2 weeks jail is no deterrent. should include confiscation of properties, $6.9m fine (to pay tax), and 69 weeks in jail.

 

[ChenShuang]

No underwear for 2 weeks

 

[firehyrant]

No underwear for 2 weeks

Then if she got period how?

 

[ChenShuang]

Then if she got period how?

Not sure that one.

 

[batman1]

The can now apply for Jail At Home.

 

[congo9]

Can apply for JAH.

 

[birdie69]

2 weeks jail is no deterrent. should include confiscation of properties, $6.9m fine (to pay tax), and 69 weeks in jail.

Can request to serve the term at home like Iswaran?

 

[WangChuk]

Then if she got period how?

so many prison officers around .... no chance of it ....

 

[Papsmearer]

What is the loophole? I want to use it too.

 

[jw5]

No underwear for 2 weeks

Maybe they already not wearing?

 

[NanoSpeed]

What is the loophole? I want to use it too.

If you are already an owner of a 1st property, and if you wish to own a 2nd property, as a citizen your 1st property is free of ABSD (Additional Buyer Stamp Duty), but your 2nd property will attract a 20% ABSD. You want to own a 2nd property without having to pay the 20% ABSD on the full value of the property. You need a "virgin" to help you.

The "virgin" must not have owned any property before so that she will not be charged any ABSD as it'll be her 1st property. After she has acquired the property, she will transfer 1% of the her property to you, so that she holds 99% and you, 1% as tenants-in-common. As this will be your 2nd property, you will have to pay 20% of ABSD on the value that is transferred to you, i.e. on the 1% that you acquired.

If the property is worth $1m, and if you were to purchase the 2nd property all by yourself, you would have to pay $200,000 in ABSD. But with the help of a virgin, you pay 20% of the 1% acquired, which is 20% of $10,000 = $2,000.

 

[firehyrant]

If you are already an owner of a 1st property, and if you wish to own a 2nd property, as a citizen your 1st property is free of ABSD (Additional Buyer Stamp Duty), but your 2nd property will attract a 20% ABSD. You want to own a 2nd property without having to pay the 20% ABSD on the full value of the property. You need a "virgin" to help you.

The "virgin" must not have owned any property before so that she will not be charged any ABSD as it'll be her 1st property. After she has acquired the property, she will transfer 1% of the her property to you, so that she holds 99% and you, 1% as tenants-in-common. As this will be your 2nd property, you will have to pay 20% of ABSD on the value that is transferred to you, i.e. on the 1% that you acquired.

If the property is worth $1m, and if you were to purchase the 2nd property all by yourself, you would have to pay $200,000 in ABSD. But with the help of a virgin, you pay 20% of the 1% acquired, which is 20% of $10,000 = $2,000.

Like that you also can write a story. Steady man.

 

[Narong Wongwan]

If you are already an owner of a 1st property, and if you wish to own a 2nd property, as a citizen your 1st property is free of ABSD (Additional Buyer Stamp Duty), but your 2nd property will attract a 20% ABSD. You want to own a 2nd property without having to pay the 20% ABSD on the full value of the property. You need a "virgin" to help you.

The "virgin" must not have owned any property before so that she will not be charged any ABSD as it'll be her 1st property. After she has acquired the property, she will transfer 1% of the her property to you, so that she holds 99% and you, 1% as tenants-in-common. As this will be your 2nd property, you will have to pay 20% of ABSD on the value that is transferred to you, i.e. on the 1% that you acquired.

If the property is worth $1m, and if you were to purchase the 2nd property all by yourself, you would have to pay $200,000 in ABSD. But with the help of a virgin, you pay 20% of the 1% acquired, which is 20% of $10,000 = $2,000.

This is only for loan purposes.
Cannot afford then dun buy 2nd property lor

 

[Hightech88]

Singapore is too land scarce hence the Gov policies is very obvious to discourage owning multiple properties so as to distribute the properties more equally among all residents which is fairer for all, and most importantly, to encourage people to buy more blue chip shares for long term investment. Alternatively, one can always buy blue chip REIT shares like Capitaland (but not CDL, LOL), Frasers Centrepoint or Mapletree which has been seeing consistent annual growth with high dividends above 4%. Moreover, buying shares is so much cleaner with no capital gains tax and no need to go through the hassle of maintaining the properly and paying property taxes, ranjiao stamp fees etc. which will be higher if not owner-occupied and rented out. Most REITs pay dividends quarterly, or four times a year which will be credited automatically to your personal CDP-link bank account, so it becomes a form of passive income.

 

[Alamakinky]

2 weeks jail is no deterrent. should include confiscation of properties, $6.9m fine (to pay tax), and 69 weeks in jail.

should also consider banning them from 69ing for a period of 69 days

 

[Papsmearer]

If you are already an owner of a 1st property, and if you wish to own a 2nd property, as a citizen your 1st property is free of ABSD (Additional Buyer Stamp Duty), but your 2nd property will attract a 20% ABSD. You want to own a 2nd property without having to pay the 20% ABSD on the full value of the property. You need a "virgin" to help you.

The "virgin" must not have owned any property before so that she will not be charged any ABSD as it'll be her 1st property. After she has acquired the property, she will transfer 1% of the her property to you, so that she holds 99% and you, 1% as tenants-in-common. As this will be your 2nd property, you will have to pay 20% of ABSD on the value that is transferred to you, i.e. on the 1% that you acquired.

If the property is worth $1m, and if you were to purchase the 2nd property all by yourself, you would have to pay $200,000 in ABSD. But with the help of a virgin, you pay 20% of the 1% acquired, which is 20% of $10,000 = $2,000.

Can't you form a limited company to buy properties? The ABSD does not apply to corporate buyers, right?

 

[Papsmearer]

Singapore is too land scarce hence the Gov policies is very obvious to discourage owning multiple properties so as to distribute the properties more equally among all residents which is fairer for all, and most importantly, to encourage people to buy more blue chip shares for long term investment. Alternatively, one can always buy blue chip REIT shares like Capitaland (but not CDL, LOL), Frasers Centrepoint or Mapletree which has been seeing consistent annual growth with high dividends above 4%. Moreover, buying shares is so much cleaner with no capital gains tax and no need to go through the hassle of maintaining the properly and paying property taxes, ranjiao stamp fees etc. which will be higher if not owner-occupied and rented out. Most REITs pay dividends quarterly, or four times a year which will be credited automatically to your personal CDP-link bank account, so it becomes a form of passive income.

View attachment 215716

Don't know what lancheow shit u talking. There are so many properties available, the govt is encouraging people to buy more then one. How many HDB flat dwellers also own a condo somewhere? Shit lah, u go to HDB car park at night, it's like a car show with Mercs, BMW, Lexus, etc. parked there. PAP change the rules now that HDB dwellers can purchase another property.

 

[Hightech88]

Don't know what lancheow shit u talking. There are so many properties available, the govt is encouraging people to buy more then one. How many HDB flat dwellers also own a condo somewhere? Shit lah, u go to HDB car park at night, it's like a car show with Mercs, BMW, Lexus, etc. parked there. PAP change the rules now that HDB dwellers can purchase another property.

I think you are the one talking ranjiao cock shit damn xia suay. You better get your facts straight before posting anything.

Nobody say you cannot buy but there is now higher ABSD penalty fee involved when you own a residential property and wanting to buy another one. It is precisely the increasing no. of private home owners downgrading to HDBs (with flaunting of luxury cars at HDB etc. making people dulan) which caused a soar in resale HDB prices which resulted in the the more stringent measures in recent years taken by the Gov. Besides, perhaps you are not aware, the latest cooling measures already dictate that when you downgrade and selling your existing private property, you will have to wait for 15 months before you are allowed to buy a non-subsidized HDB resale flat, it is to curb rising HDB prices.

Open your farking eyes and read the latest series of property cooling measures below to discourage people from buying too many properties, be it downgrading or otherwise.

How does this tally your rhetoric that "the govt is encouraging people to buy more then one". You must be so ignorant like living in a cave, farking xia suay max. Please go to kallang river and jump down. Once again, think and research with facts first before you post anything.

https://www.dbs.com.sg/personal/articles/nav/my-home/cooling-measures-in-singapore#

23 Sep 2024

New property measures to curb rising home prices​

• The latest set of cooling measures announced in August 2024 focused on curbing demand for HDB flats by reducing the Loan-to-value(LTV) ratio for HDB loans from 80% to 75%.
• Property measures have been introduced yearly since 2021 to curb rising property demand, including increasing Additional Buyer’s Stamp Duty (ABSD) rates and tightening of the Total Debt Servicing Ratio (TDSR) threshold.
• Affordability is key when buying a property, since it is a long-term financial commitment.

Property prices have surged close to 50% since a low in 2Q2017 and the Singapore government has introduced property cooling measures every year since 2021 in an attempt to curb soaring prices.
One of the primary drivers behind the increased demand for housing is the low-interest rate environment amid the Covid-19 pandemic. Despite the economic challenges, transaction volumes in both the private housing and HDB resale markets have shown an upward trend.
While many had expected the property prices to stabilise following increased home supply post-Covid and an upward rising interest rate trend, property prices continue to head north.

In response to the evolving property situation, the government has introduced a slew of property measures from 2021 to 2024. Here is a summary.
2024 (New!)

• Reduced LTV limit from 80% to 75% for HDB home loans,
• Increase in Enhanced CPF Housing Grant (EHG) for eligible first-timer families and singles, of up to S$120,000 and S$60,000 respectively.

2023

• Substantial increase in ABSD for foreigners buying properties in Singapore, and increase in ABSD for Singapore Citizens (SC) and Singapore Permanent Residents (SPR) buying more than 1 property

2022

• Increase in interest rate floor calculation for TDSR and Mortgage Servicing Ratio (MSR) by 0.5 percentage point
• 15-month wait for private homeowners after the sale of their home before they can purchase a non-subsidised HDB resale flat
• Reduced LTV limit from 85% to 80% for HDB home loans

2021

• Increase in ABSD for foreigners buying properties in Singapore, and increase in ABSD for Singapore Citizens(SC) and Singapore Permanent Residents(SPR) buying more than 1 property
• TDSR threshold tightened from 60% to 55%
• Reduced LTV limit from 90% to 85% for HDB home loans

The latest cooling measures announced in August 2024 aimed at taming the price increase in the HDB resale market. On the other hand, the increased EHG would make homeownership more affordable for low-to-middle income households and younger couples purchasing their first home. The additional grant amount can partially offset the 5% reduction in loan-to-value (LTV) ratio (from 80% to 75%), depending on the price of the house. This means little to no additional downpayment may be required.

For example, a couple with a household income of S$5,000 looking to purchase a S$400,000 HDB resale flat would need to pay an additional S$20,000 in downpayment due to the lower LTV. However, the S$20,000 EHG increase would offset this additional cost, resulting in no additional outlay. On top of that, the monthly instalment will also be lower due to the smaller loan amount.
However, there are concerns that higher grants could lead to an increase in the selling prices of resale flats, potentially negating the benefits of the grant.
Nevertheless, the government's recent policy adjustment signals its close monitoring of the property market amidst a sustained rally in HDB resale prices and a record number of million-dollar HDB homes.
Many property experts hold the view that we could see a slightly softer HDB resale volume due to the policy adjustment, but do not expect any significant impact on developers or the overall residential market.

Read on to find out about past property cooling measures:
Additional Buyer’s Stamp Duty (ABSD)
ABSD is a tax that's levied on top of the Buyer's Stamp Duty (a tax that property buyers must pay when they buy a property), and it's computed based on the valuation or the selling price of the property, whichever is higher.

With the cooling measures implemented in 2023, ABSD rates for the purchase of the 1st residential property by Singapore citizens and permanent residents (PRs) remain unchanged at 0% and 5% respectively.
For these 2 groups, purchasing the 2nd or a 3rd and subsequent residential property will incur increased ABSD rates.
Singapore citizens will now pay an ABSD rate of 20% for their 2nd residential property, and 30% for their 3rd and subsequent residential property. This is up from the previous rates of 17% and 25% respectively.
The ABSD rates for permanent residents buying a 2nd or a 3rd and subsequent residential property has been increased to 30% and 35% respectively, up from the previous rates of 25% and 30%.
Foreigners and entities will also incur more ABSD when purchasing any residential property.
Foreigners buying any residential property are subject to an ABSD rate of 60%, up from 30%. Entities, which include companies, are subject to an ABSD rate of 65%, up from 35%.
There is no change to ABSD for housing developers. They will still be subjected to a 35% ABSD rate, of which they can apply for a remission plus an additional 5% ABSD (paid upfront upon property purchase) that cannot be remitted.

Total Debt Servicing Ratio (TDSR)​

The TDSR is the portion of a borrower’s gross monthly income that goes towards repaying the monthly debt obligations, including the loan being applied for. In 2022, the TDSR threshold was tightened to 55% from 60% previously.
This means new mortgages cannot cause borrowers’ total monthly loan repayments to exceed 55% of monthly income.
Increase in TDSR and Mortgage Servicing Ratio (MSR) calculation by 0.5 % point
In 2022, the interest rate floor used to compute the TDSR and the MSR was raised by 0.5% point. An interest rate floor of 3% for computing the eligible loan amount for those granted by HDB was also introduced.

Bank Loan	4% (previously 3.5%)	Depends on bank
HDB Loan	3%	2.6% (current)

Do note that the change affects the assumption in interest rate while the actual interest rates charged will continue to be determined by the private financial institutions.
Impact of new interest rate floor on monthly payment calculations

	Monthly Payments	Monthly income ceiling before TDSR	Monthly Payments	Monthly income ceiling before TDSR	Difference in monthly income
$1 million	$4,490	$8,164	$4,774	$8,680	$516
$2 million	$8,981	$16,329	$9,548	$17,361	$1,031

At 4% (as of Sept 30 2022)

Source: Straits Times
To borrow S$1 million, home buyers will now need to be earning S$8,680 to qualify for a home loan based on a 0.5 percentage point increase in the interest rate assumption.

Private homeowners will need to wait for 15 months after the sale of their home before they can purchase a non-subsidised HDB resale flat​

This 15-month wait-out period will be exempted for seniors aged 55 and above who are moving from their private property to a 4-room or smaller resale flat.
This is meant to be a temporary measure to curb demand for public housing and to ensure that resale flats remain affordable.
Such property owners were previously allowed to buy a HDB resale flat if they sell their private properties within 6 months of the purchase.
The wait-out period for private homeowners who are first-timers and wish to apply for the Central Provident Fund (CPF) Housing Grant and Enhanced CPF Housing Grant for their resale flat purchase remains unchanged at 30 months. The same applies for executive condo owners.

 

[Hightech88]

Can't you form a limited company to buy properties? The ABSD does not apply to corporate buyers, right?

Corporate buyers incur even higher ABSD even as a first-time buyer. They are deemed as 'entity' buyers and have to now pay a freaking 65% ABSD, LOL.

https://www.iras.gov.sg/taxes/stamp...property/additional-buyer's-stamp-duty-(absd)

As of October 2023, the Additional Buyer's Stamp Duty (ABSD) rate for corporate buyers (entities such as companies, trusts, or associations) purchasing residential properties in Singapore is 65%, regardless of whether it is their first, second, or subsequent property purchase. This rate applies uniformly to all residential property acquisitions by corporate entities.

---

Key Points About ABSD for Corporate Buyers​

1. No Differentiation for First Property:
   
   • Unlike individual buyers (Singapore Citizens, Permanent Residents, or Foreigners), corporate buyers do not receive any lower ABSD rate for their first residential property purchase. The rate is fixed at 65% for all residential property acquisitions.
2. Purpose of High ABSD for Corporates:
   
   • The high ABSD rate for corporate buyers is intended to discourage speculative investment in residential properties and ensure that housing remains affordable for individual buyers.
3. Additional Costs:
   
   • On top of ABSD, corporate buyers must also pay the standard Buyer's Stamp Duty (BSD), which is calculated based on the purchase price or market value of the property, whichever is higher. The BSD rates are as follows:
     
     • 1% on the first $180,000
     • 2% on the next $180,000
     • 3% on the next $640,000
     • 4% on the remaining amount above $1,000,000

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Example Calculation for a Corporate Buyer​

If a corporate entity purchases a residential property for $2,000,000, the total stamp duties would be calculated as follows:

1. Buyer's Stamp Duty (BSD)​

• 1% on the first 180,000=180,000=1,800
• 2% on the next 180,000=180,000=3,600
• 3% on the next 640,000=640,000=19,200
• 4% on the remaining 1,000,000=1,000,000=40,000
• Total BSD = 1,800+1,800+3,600 + 19,200+19,200+40,000 = $64,600

2. Additional Buyer's Stamp Duty (ABSD)​

• 65% of 2,000,000=∗∗2,000,000=∗∗1,300,000**

3. Total Stamp Duty Payable​

• BSD + ABSD = 64,600+64,600+1,300,000 = $1,364,600

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Exceptions or Reliefs for Corporate Buyers​

Corporate buyers generally do not qualify for ABSD reliefs or exemptions. However, there are a few rare exceptions:

1. Housing Developers: Approved housing developers may apply for ABSD remission under specific conditions, such as developing and selling all units within a stipulated timeframe.
2. Specific Entities: Certain entities, such as registered charities or approved Real Estate Investment Trusts (REITs), may qualify for exemptions or lower rates under specific schemes.

---

Conclusion​

For corporate buyers, the ABSD rate for purchasing residential properties in Singapore is 65%, regardless of whether it is their first or subsequent property. This high rate reflects the government's intent to prioritize housing for individual buyers and curb speculative investment. Corporate buyers should carefully evaluate the significant costs involved and consider consulting legal or tax professionals before proceeding with such purchases.
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