Singapore Property Scene Discussion

[Spidey10]

On 4/21/2023 at 10:13 AM, 13177 said:

No listen yet, so what she say? 😂 

she says our axx belong to the state....

can close and open anytime...

Edited April 21, 2023 by Spidey10

[Spidey10]

On 4/21/2023 at 12:16 AM, Wt_know said:

 

sums it up nicely....

[Windwaver]

https://www.straitstimes.com/singapore/politics/buyers-in-99-to-1-property-deals-can-voluntarily-pay-absd-iras-will-look-at-cases-more-favourably

Buyers in ‘99-to-1’ property deals can voluntarily pay ABSD, Iras will look at cases more favourably

SINGAPORE - Buyers who bought private properties using the “99-to-1” purchase arrangement can come forward voluntarily to make good any underpayment of taxes and the taxman will, in general, look at such cases more favourably.

Senior Minister of State for Finance Chee Hong Tat said this in Parliament on Friday, amid recent scrutiny of some buyers who used the loophole to avoid paying additional buyer’s stamp duty (ABSD).

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 property to another buyer within a short period of time, said Mr Chee, in response to five MPs who filed questions on the issue.

Such a deal allows the buyer, who already owns other properties, to avoid the ABSD, while still becoming the new property’s co-owner and a co-applicant for bank loans to finance it.

The Inland Revenue Authority of Singapore (Iras) is currently looking into private property purchases with such arrangements.

Earlier in April, The Straits Times reported that Iras had sent letters to some first-time buyers asking them to explain why they sold just 1 per cent of the same property to a relative within a short period of time after exercising the purchase option.

Mr Chee said that taxpayers who wish to come forward voluntarily to disclose and make good any underpayment of taxes may do so.

“Iras would look into each case on a case-by-case basis depending on the circumstances. But, in general, I would say that if you come forward in such cases to voluntarily disclose, Iras will look at the case more favourably,” he said.

Buyers who have existing properties must pay the full ABSD sum as long as they own any interest in a property, including when they buy properties with first-time owners.

Singaporeans who have second properties pay 17 per cent ABSD; those with more properties pay 25 per cent.

Anyone caught avoiding the ABSD for second and subsequent properties will have to pay the outstanding amount and an extra 50 per cent surcharge may be imposed as the minimum penalty.

Mr Chee said Iras adopts a risk-based approach to detect and enforce against non-compliance and tax avoidance.

As part of its surveillance efforts, Iras has detected a small but rising number of “99-to-1” arrangements in recent years, he added.

“It has therefore initiated audits of such transactions to better understand the circumstances of each case and ensure that buyers fulfil their rightful stamp duty obligations. Whether or not the “99-to-1” arrangement involves tax avoidance depends on the facts and circumstances surrounding the specific case.”

Mr Chee noted that there is no statutory time limit for stamp duty audits. This means that the ongoing investigation could target all cases involving such deals since 2011, when the ABSD was introduced.

Other than the buyers, he said the Government also takes a serious view of individuals who promote or facilitate such tax avoidance arrangements.

Those identified as doing so will be referred by Iras to the relevant regulatory agencies, said Mr Chee in response to Mr Don Wee (Chua Chu Kang GRC) who asked if lawyers will be held accountable as they have a duty to highlight such risks when drafting the agreements.

In the case of property agents, they will be referred to the Council for Estate Agencies for investigation and disciplinary action, said Mr Chee. Depending on the severity of the breach, agents may face financial penalties and/or suspension of their registrations.

“The large majority of taxpayers are compliant and pay the taxes that are due. We thank them for their contributions to our fair and progressive system of taxes and transfers, where individuals with greater means will contribute more and those who are vulnerable amd earn lower income will receive more help,” said Mr Chee.

[Wt_know]

kee chiu and you will be forgiven 

[Stary]

On 4/19/2023 at 10:33 PM, Windwaver said:

 

The question from the channel host is a bit strange in the first place.  Obviously it can't be freehold everywhere. The right question should be asking about policies and the increasing prices, and not why we can only own homes (under public housing context in this case) for 99 years.  

[Volvobrick]

On 4/21/2023 at 3:16 PM, Wt_know said:

kee chiu and you will be forgiven 

 

And don't forget to pay up! 

[Wt_know]

On 4/21/2023 at 3:24 PM, Starry said:

The question from the channel host is a bit strange in the first place.  Obviously it can't be freehold everywhere. The right question should be asking about policies and the increasing prices, and not why we can only own homes (under public housing context in this case) for 99 years.  

well … what do you expect? lol

Answer (hear the good stuff) depends on the type of Question, right?

 

 

Edited April 21, 2023 by Wt_know

[Mkl22]

More favorably only means less fine. Tan ku ku if one thinks just pay absd and everything will be forgiven. 
ah gong never forgives or forgets! 🤣

[Hubwee]

They are the ones who allowed these transactions to go thru ... now then discovered the loophole and wants to do retroactive actions ? 

4G really cmi lo .....

 

 

[Fcw75]

On 4/21/2023 at 10:14 AM, Throttle2 said:

Nothing new, nothing great, dont bother.

i didnt

I see her LJ face, I scrolled down and saw your post. 

Ask people to have baby blah blah blah. Maybe she can lead by example? 

[therock]

I think they are casting the dragnet pretty wide on this one .. I expect more people will be hauled up..

[Atonchia]

https://www.99.co/singapore/insider/4-room-pinnacle-duxton-flat-record-1-4m-1369-psf/#Echobox=1682049415

1400 per sq ft.

Very affordable lah. 

See how much the HDB value can appreciate....

SG has 290k millionaires so that's 5% of population.

Likely 290k different households. Of course some household will have multiple millionaires....

SG has 1.37m households.

So maximum is 21% of household are a millionaire household?

[13177]

On 4/21/2023 at 6:20 PM, Atonchia said:

https://www.99.co/singapore/insider/4-room-pinnacle-duxton-flat-record-1-4m-1369-psf/#Echobox=1682049415

1400 per sq ft.

Very affordable lah. 

See how much the HDB value can appreciate....

SG has 290k millionaires so that's 5% of population.

Likely 290k different households. Of course some household will have multiple millionaires....

SG has 1.37m households.

So maximum is 21% of household are a millionaire household?

Not all hdb can appreciate hor. There are many negative hdb sales also.

[therock]

On 4/21/2023 at 6:40 PM, 13177 said:

Not all hdb can appreciate hor. There are many negative hdb sales also.

Let’s Wait til those million dollar flat owners look to exit .. and see if there’s still a profit 

[Rskc]

On 4/21/2023 at 6:55 PM, therock said:

Let’s Wait til those million dollar flat owners look to exit .. and see if there’s still a profit 

I said the same when hdb hit 1m then. Now those bought resale at 1m are probably smiling...so I think I better 😷🤣

[therock]

Yeah, what do I know.. we live and learn..

[Khng8]

On 4/21/2023 at 3:09 PM, Windwaver said:

https://www.straitstimes.com/singapore/politics/buyers-in-99-to-1-property-deals-can-voluntarily-pay-absd-iras-will-look-at-cases-more-favourably

Buyers in ‘99-to-1’ property deals can voluntarily pay ABSD, Iras will look at cases more favourably

SINGAPORE - Buyers who bought private properties using the “99-to-1” purchase arrangement can come forward voluntarily to make good any underpayment of taxes and the taxman will, in general, look at such cases more favourably.

Senior Minister of State for Finance Chee Hong Tat said this in Parliament on Friday, amid recent scrutiny of some buyers who used the loophole to avoid paying additional buyer’s stamp duty (ABSD).

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 property to another buyer within a short period of time, said Mr Chee, in response to five MPs who filed questions on the issue.

Such a deal allows the buyer, who already owns other properties, to avoid the ABSD, while still becoming the new property’s co-owner and a co-applicant for bank loans to finance it.

The Inland Revenue Authority of Singapore (Iras) is currently looking into private property purchases with such arrangements.

Earlier in April, The Straits Times reported that Iras had sent letters to some first-time buyers asking them to explain why they sold just 1 per cent of the same property to a relative within a short period of time after exercising the purchase option.

Mr Chee said that taxpayers who wish to come forward voluntarily to disclose and make good any underpayment of taxes may do so.

“Iras would look into each case on a case-by-case basis depending on the circumstances. But, in general, I would say that if you come forward in such cases to voluntarily disclose, Iras will look at the case more favourably,” he said.

Buyers who have existing properties must pay the full ABSD sum as long as they own any interest in a property, including when they buy properties with first-time owners.

Singaporeans who have second properties pay 17 per cent ABSD; those with more properties pay 25 per cent.

Anyone caught avoiding the ABSD for second and subsequent properties will have to pay the outstanding amount and an extra 50 per cent surcharge may be imposed as the minimum penalty.

Mr Chee said Iras adopts a risk-based approach to detect and enforce against non-compliance and tax avoidance.

As part of its surveillance efforts, Iras has detected a small but rising number of “99-to-1” arrangements in recent years, he added.

“It has therefore initiated audits of such transactions to better understand the circumstances of each case and ensure that buyers fulfil their rightful stamp duty obligations. Whether or not the “99-to-1” arrangement involves tax avoidance depends on the facts and circumstances surrounding the specific case.”

Mr Chee noted that there is no statutory time limit for stamp duty audits. This means that the ongoing investigation could target all cases involving such deals since 2011, when the ABSD was introduced.

Other than the buyers, he said the Government also takes a serious view of individuals who promote or facilitate such tax avoidance arrangements.

Those identified as doing so will be referred by Iras to the relevant regulatory agencies, said Mr Chee in response to Mr Don Wee (Chua Chu Kang GRC) who asked if lawyers will be held accountable as they have a duty to highlight such risks when drafting the agreements.

In the case of property agents, they will be referred to the Council for Estate Agencies for investigation and disciplinary action, said Mr Chee. Depending on the severity of the breach, agents may face financial penalties and/or suspension of their registrations.

“The large majority of taxpayers are compliant and pay the taxes that are due. We thank them for their contributions to our fair and progressive system of taxes and transfers, where individuals with greater means will contribute more and those who are vulnerable amd earn lower income will receive more help,” said Mr Chee.

Why can’t just give the number each year but have to say it’s 0.5% of transactions? And the reader has to go research how many transactions there were during that period and then multiply to get the answer. 
Figures before 2018 and 2022 were not given - because of …?

[Throttle2]

On 4/21/2023 at 6:20 PM, Atonchia said:

https://www.99.co/singapore/insider/4-room-pinnacle-duxton-flat-record-1-4m-1369-psf/#Echobox=1682049415

1400 per sq ft.

Very affordable lah. 

See how much the HDB value can appreciate....

SG has 290k millionaires so that's 5% of population.

Likely 290k different households. Of course some household will have multiple millionaires....

SG has 1.37m households.

So maximum is 21% of household are a millionaire household?

in life there are people who pay high price and lost money. If no losers, how can there be winners?   Hee hee…..

my landed house is now being transacted at triple my cost price.  Muayhahahahahahah