SINGAPORE — A"small but rising number" of private residential properties transacted involved a property purchase arrangement in which the ownership of a property is split in a 99:1 ratio, which would effectively reduce the additional buyer’s stamp duty needed, said Senior Minister of State for Finance and Transport Chee Hong Tat on Friday .
Mr Chee said those found to have entered into such schemes to escape the taxman would have to pay back their dues, on top of an additional 50 per cent surcharge. “Depending on the severity of the breach, agents may face financial penalties and suspension of their registrations.” The current ABSD rates are 17 per cent of the purchase price of the property when purchasing a second property for Singaporean buyers, and 25 per cent on subsequent purchases. Permanent residents and foreigners are subjected to higher ABSD.
MP for Chua Chu Kang GRC Don Wee who asked why it has taken the authority more than a decade to investigate as ABSD was introduced in 2011.