SG Talk

Claw back all the lost stamp dury. No use explaining.....it is very obvious a loop hole

Might have been there for the top brass to accumulate their property portfolio all these years... Ask the MPs and ministers if they or their family members know or not lor.

SINGAPORE - The taxman has launched an audit of property investors who have used a loophole “99-to-1” sales contract to dodge paying the additional buyer’s stamp duty (ABSD).

The Straits Times has learnt that letters are being sent to some first-time buyers of private real estate to demand that they explain why they signed fresh agreements to sell just 1 per cent of the same properties to their relatives barely a week after exercising the purchase options.

(01-04-2023, 07:01 PM)sgbuffett Wrote: [ -> ]SINGAPORE - The taxman has launched an audit of property investors who have used a loophole “99-to-1” sales contract to dodge paying the additional buyer’s stamp duty (ABSD).

The Straits Times has learnt that letters are being sent to some first-time buyers of private real estate to demand that they explain why they signed fresh agreements to sell just 1 per cent of the same properties to their relatives barely a week after exercising the purchase options.

What they did is in line with the law because for ABSD they have to be full owners .and co owners are able to escape absd..so they sold 1% to avoid ABSD

Since everything is accordance to the law, what is the problem

Right, if the laws allow then it's not their fault

The one who implement the policy need to be accountable!
Its indirectly cost property rocket prices!

Dont care, just fine 20x for the evaded tax 
Can use other law to charge them.
逃税已经是重罪。

I thought even if the property is partially owned, the property will still be counted as one property and ABSD will still need to be paid?

Or I did interpret the rule wrongly (Rule C.2)?

https://www.iras.gov.sg/taxes/stamp-duty...uty-(absd)

(01-04-2023, 08:38 PM)Levin Wrote: [ -> ]I thought even if the property is partially owned, the property will still be counted as one property and ABSD will still need to be paid?

Or I did interpret the rule wrongly (Rule C.2)?

https://www.iras.gov.sg/taxes/stamp-duty...uty-(absd)

The 99-1 method not workable for second property onwards as above. But works for the first property when the owners want to decouple later.

Learn from Taiwan, pass a law and date it back to donkey years ago, meaning at that time didn't break law, but with the new law, break law liao..

(01-04-2023, 10:57 PM)ArielCasper Wrote: [ -> ]Learn from Taiwan, pass a law and date it back to donkey years ago, meaning at that time didn't break law, but with the new law, break law liao..

You want to make SG law even more kangaroo than it already is now? 

Do you have any idea the kind of precedence this sets for the ruling PAP and Lee Family to retrospectively persecute ANYBODY/ANY GROUP in SG with ANYTHING they can retrospectively criminalise?

IRAS investigating the wrong people.

If it is a loophole, it means that it's not illegal. Society is not obliged to self-police and close off legal loopholes on behalf of leaders who legislate such laws and rules.

If Parliament amends laws to close said loophole, then IRAS got case against anybody who does it still after the new amended law goes into effect. Otherwise they have nothing to stand on in a court of law.

FYI, SG's main international draw is precisely with playing loopholes in taxation laws by offering itself to be a tax haven for international companies and UHNW people.

(01-04-2023, 11:02 PM)Basic_Strategy Wrote: [ -> ]You want to make SG law even more kangaroo than it already is now? 

Do you have any idea the kind of precedence this sets for the ruling PAP and Lee Family to retrospectively persecute ANYBODY/ANY GROUP in SG with ANYTHING they can retrospectively criminalise?

But the Taiwanese ppl allow that. They are more democratic than sinkie land, so the law can't be that kangaroo..

I heard they will fine the buyers one way or the other, otherwise very very malu...
Or else , people who try to avoid taxes will quote this.

No use giving excise it’s a loophole. To the pappy, no such thing. You see a hole, they see a lobang ( to earn more money)

(01-04-2023, 09:31 PM)WhatDoYouThink! Wrote: [ -> ]The 99-1 method not workable for second property onwards as above. But works for the first property when the owners want to decouple later.

My earlier interpretation of the rule was that would mean that the first-time property owner-partner of the property need not pay ABSD. But the other partner/s will need to pay ABSD based on their share of this property if this property is not their first properties. Seems like it is not as the way I interpreted.

pls tell me which laws in Sg no loophole ?

99% to 1%, 1 % transfers to another party. Later, instead of 99%, the rest of the 99% is transferred at a different % to that 1%?
1% to 99%, 100%.

The stamp duty is based on transfer at 1% of the property's value. The owner with trust deed is with 1%.

Citizens first property no absd. Pr got.

I think the loophole imcan work anywhere since the buyer with existing property will take that 1% and the relative without a property, ie. finished paying HDB and do not own private? Will sign for the 99% so the adbs is only on the 1%. Behind the scene then arrange for lawyer to assign back the property to the real owner.

(01-04-2023, 08:16 PM)Ernesto Wrote: [ -> ]The one who implement the policy need to be accountable!
Its indirectly cost property rocket prices!

The law also did not say cannot use real names to make Skills Future claims, but people are charged

The law did not say fake FTs cannot apply EP but no Fake FTs charged. 

PAP very farny.



https://www.straitstimes.com/singapore/c...naccounted

The additional stamping fee will likely be 50% of the missing stamp duty plus a few times penalties.

(02-04-2023, 08:23 AM)theold Wrote: [ -> ]99% to 1%, 1 % transfers to another party. Later, instead of 99%, the rest of the 99% is transferred at a different % to that 1%?
1% to 99%, 100%.

The stamp duty is based on transfer at 1% of the property's value. The owner with trust deed is with 1%.

Stamp duty based on full value of the purchase property if co-owner has more than 1 property on his/her name according to the Straits Time report today

(02-04-2023, 08:47 AM)SgWinner Wrote: [ -> ]Stamp duty based on full value of the purchase property if co-owner has more than 1 property on his/her name according to the Straits Time report today

If the person holds more than 1 property, the additional fines will have multiple effects. This Strategy, 1% share,  is likely used by experts in this field.

ABSD clawed back + penalty imposed will be a huge amount for the property investor using the 99-1 loophole !

Refer ABSD Rate
https://www.propertyguru.com.sg/property...uide-13034

(02-04-2023, 08:23 AM)theold Wrote: [ -> ]99% to 1%, 1 % transfers to another party. Later, instead of 99%, the rest of the 99% is transferred at a different % to that 1%?
1% to 99%, 100%.

The stamp duty is based on transfer at 1% of the property's value. The owner with trust deed is with 1%.

Thanks for the explanation

(02-04-2023, 08:57 AM)SgWinner Wrote: [ -> ]ABSD clawed back + penalty imposed will be a huge amount for the property investor using the 99-1 loophole !

Refer ABSD Rate
https://www.propertyguru.com.sg/property...uide-13034

It's aloophole.means no rules are broken and nothing illegal take place.

On what basis IRAS clawback?

Iras probes home buyers who used ‘99-to-1’ loophole to avoid paying ABSD | The Straits Times
https://www.straitstimes.com/business/in...aying-absd

Further explanation of loophole. Basically the 1% holder can already own an existing property. Somehow this 1% allows him to co own and borrow a new property loan while avoiding absd.
I thought the loophole lies with the bank side that they allow a 1% holder of a property to become coborrowers to service bank loans.

Thus loophole can be used like this. A man wants to buy 2nd propeprty. He use his daughter name to own 99% and he is 1% owner. They are co-owners...normally the bank won't lend to daughter who may have low or no income but now can lend to the co-owners...so this method allows a loan to be obtained while escaping absd. 

So when asked the father can say he is not escaping absd but doing this to help his daughter get loam to pay for the property.....so what's the issue?


Explanation:
The Straits Times has learnt that letters are being sent to some first-time buyers of private real estate to demand that they explain why they signed fresh agreements to sell just 1 per cent of the same properties to their relatives barely a week after exercising the purchase options.

Such backdoor deals allow those relatives who own other properties to become co-owners and co-applicants for bank loans without being involved in the main purchases, which would have attracted the ABSD.

(02-04-2023, 08:57 AM)SgWinner Wrote: [ -> ]ABSD clawed back + penalty imposed will be a huge amount for the property investor using the 99-1 loophole !

Refer ABSD Rate
https://www.propertyguru.com.sg/property...uide-13034

No worry. IRAS will be kind to allow instalment claw back payment.