Hi,
1) In order to be eligible for ABSD remission, the husband has to dispose of his property within 6 months upon purchasing this. Since there is an SC and this is a matrimonial home.
2) If the husband wanted to own a 1% share in this new purchase and intend to keep his existing property. There are different scenarios that ABSD would be applied upon:
Do note that the scenario illustrated is assuming SC wife has the financial capacity to get a sufficient loan:
(a) Buy new launch using SC wife's name only. After exercising the S&P, sell 1% to the husband. Husband only needs to pay 15% ABSD on the 1% share.
(b) Buy resale using SC wife's name only. After completion, sell 1% to the husband. Husband only needs to pay 15% ABSD on the 1% share.
Do note that in both scenarios illustrated above, SC wife is subject to 12% SSD.
(c) Buy together, this is applicable to both types (new launch or resale). The 15% ABSD is applicable to the price of the property bought.
3) Scenario 2(a) & 2(b) illustrated above is subject to IRAS investigation, you will be fined heavily once found there is an intention of tax evasion.
Once convicted of tax evasion, you will be facing sections 96 & 96A of the Singapore Income Tax Act:
(a) Penalty up to 300% of the amount of tax undercharged;
(b) Fine up to $10,000; and/or.
(c) Imprisonment up to three years.
or
(a) Penalty up to 400% of the amount of tax undercharged;
(b) Fine up to $50,000; and/or.
(c) Imprisonment up to five years.
Hope the above answer your main concerns, but if there are more query, please feel free to contact me at
90110636
, or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer
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