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.