Investigations into "99-to-1" Arrangement for Stamp Duty Payment for Property Purchases

Ms He Ting Ru asked the Deputy Prime Minister and Minister for Finance in relation to the Inland Revenue Authority of Singapore (IRAS) investigations into a "99-to-1" arrangement for stamp duty payment for property purchases (a) to date, how many referrals has IRAS made to (i) the Council for Estate Agencies and (ii) the Law Society; (b) whether there are any findings that the Government has to share about the results of this referral; and (c) whether the Government will be looking to assist individuals who have been misadvised by estate agents and lawyers to obtain compensation.

The "99-to-1" arrangement 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 a residential property.

When such property purchase arrangements are made to reduce the tax payable, the Commissioner of Stamp Duties is empowered under Section 33A of the Stamp Duties Act to disregard the individual transactions and assess them as a single joint purchase, and to recover the rightful amount of ABSD due, along with a 50% surcharge.

As of April 2024, IRAS has completed the review of 187 such "99-to-1" cases. Of which, 166 cases were found to have involved tax avoidance and about $60 million in ABSD and surcharges will accordingly be clawed back. Out of the 166 cases found to have involved tax avoidance, about 10 cases with evidence of potential involvement by property agents are currently under review by the Council for Estate Agencies.