Crackdown on tax avoiders and thoughts on expanding BTO eligibility

WHEN taxes are high, it can be tempting to avoid paying such taxes. However, using dodgy tax avoidance schemes will land one in hot soup.

In a written parliamentary reply last week, Deputy Prime Minister and Minister for Finance Lawrence Wong said the “99-to-1” scheme is a tax avoidance arrangement used by some property buyers to reduce the rightful Additional Buyer’s Stamp Duty (ABSD) payable on the purchase of residential property.

The Inland Revenue Authority of Singapore discovered 166 cases of private property purchases that involved tax avoidance as at April. Around S$60 million in ABSD and surcharges will be clawed back. About 10 cases with evidence of potential involvement by property agents are under review by the Council for Estate Agencies (CEA).