IRAS to reclaim $60m from '99-to-1' ABSD loophole exploiters

As of April, IRAS has audited 187 cases related to the scheme, uncovering 166 engaged in tax avoidance practices.

The Inland Revenue Authority of Singapore (IRAS) is set to recover $60m from buyers who exploited the "99-to-1" loophole to avoid additional buyer's stamp duty (ABSD).

According to Deputy Prime Minister and Finance Minister Lawrence Wong, the "99-to-1" scheme involves buyers structuring property purchases in a way that manipulates the tax system, allowing them to significantly reduce their ABSD obligations. 

“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,” said Wong in response to a parliamentary question.

As of April, IRAS has conducted audits on 187 cases related to this scheme. Out of these,166 cases were found to be engaged in tax avoidance practices.