Some home buyers facing ‘99-to-1’ ABSD probes blaming it on advice from real estate agents

AS THE government continues to probe residential property deals for tax avoidance, some buyers now facing investigation are claiming they were coached by real estate agents to structure their purchases with the so-called “99-to-1” arrangement.

One such buyer, who now faces a few hundred thousand dollars in Additional Buyer’s Stamp Duty (ABSD) payment and surcharges, told The Business Times she was “advised by (the) agent, with the assistance of the banker and lawyer, to go with this arrangement” so that the couple could secure sufficient financing for their home purchase.

The buyer, speaking to BT under conditions of anonymity, said they were looking for a new home a few years ago and she was earning a higher income than her fiance back then. They bought a condominium unit for under S$2 million.