THE Inland Revenue Authority of Singapore (Iras) is offering a reward of up to $100,000 to whistleblowers who call out private property buyers who use the so-called “99-to-1” or similar arrangements to evade or reduce additional buyer’s stamp duty (ABSD) on their purchase.
A reward based on 15 per cent of the tax recovered – capped at $100,000 – for each case will be given to informants if the information and/or documents provided lead to tax recovery, the tax regulator told The Straits Times on Tuesday (Apr 25).
This is not the first time Iras has offered a reward for information on tax avoidance or evasion.
About 0.5 per cent of private residential properties transacted in the period from 2018 to 2021 involved 99-to-1, or similar, purchase arrangements, where the owners sold a partial interest in the home to another buyer within a short period of time, Senior Minister of State for Finance Chee Hong Tat told Parliament last Friday in response to questions by MPs on such arrangements.
The loophole enables those who already own property to reduce or avoid paying ABSD while still becoming the additional property’s co-owner and a co-applicant for a loan to finance the purchase.
Earlier in April, ST reported that Iras sent letters to some first-time buyers asking them to explain why they sold just 1 per cent of the property to a relative within a short period of time after exercising the purchase option.
https://www.businesstimes.com.sg/pr...rty-deals-exploiting-99-1-loophole-evade-absd
A reward based on 15 per cent of the tax recovered – capped at $100,000 – for each case will be given to informants if the information and/or documents provided lead to tax recovery, the tax regulator told The Straits Times on Tuesday (Apr 25).
This is not the first time Iras has offered a reward for information on tax avoidance or evasion.
About 0.5 per cent of private residential properties transacted in the period from 2018 to 2021 involved 99-to-1, or similar, purchase arrangements, where the owners sold a partial interest in the home to another buyer within a short period of time, Senior Minister of State for Finance Chee Hong Tat told Parliament last Friday in response to questions by MPs on such arrangements.
The loophole enables those who already own property to reduce or avoid paying ABSD while still becoming the additional property’s co-owner and a co-applicant for a loan to finance the purchase.
Earlier in April, ST reported that Iras sent letters to some first-time buyers asking them to explain why they sold just 1 per cent of the property to a relative within a short period of time after exercising the purchase option.
https://www.businesstimes.com.sg/pr...rty-deals-exploiting-99-1-loophole-evade-absd
