A MOTHER and son duo is facing charges for giving false and misleading information to the Inland Revenue Authority of Singapore (Iras) during its audit of the so-called “99-to-1” for private properties.
This is the first prosecution of taxpayers providing false and misleading information to Iras during its investigation into the two-step “99-to-1” property transactions for possible tax avoidance, said the agency in a press statement on Friday (Sep 20).
The mother, 56-year-old Ng Chiew Yen, and her son, 26-year-old Tan Kai Wen, both face five charges each.
Investigations revealed that Tan had purchased a residential property solely in his name on Sep 24, 2021, said Iras. Subsequently, he sold a 1 per cent share of the property to Ng.
Iras commenced an audit into the transactions in 2023. During the audit, it asked Tan why he did not purchase the property jointly with Ng at the outset.
Tan allegedly falsely stated that he had made a hasty decision to purchase the property with the understanding that his family would support him financially. But his family was unable to do so, and thus, Ng had to be added as an owner in order to take a loan.
Tuesday, 12 pm
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Furthermore, he allegedly provided misleading information to Iras through incomplete WhatsApp messages, as well as other “false and misleading” responses to the agency during the audit.
Both Tan and Ng were handed five charges each for allegedly conspiring to provide misleading information and responses to Iras. If convicted, they could each be fined up to S$10,000 or jailed for up to two years, or both.
Tax avoidance
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