Additional Buyer’s Stamp Duty (‘ABSD’) has often been regarded as a very effective tool by the government in suppressing rising residential property prices. For unwary home buyers, the imposition of ABSD can come as a surprise. For example, unbeknownst to many, where there are two or more co-purchasers, ABSD is imposed on the entire value of the residential property at the highest property count of the purchasers concerned.
In recent years, the Commissioner of Stamp Duties (‘CSD’) has been clamping down on “99-to-1” co-ownership arrangements used by purchasers to reduce ABSD where there is a joint purchase, on the basis that these arrangements are stamp duty avoidance arrangements.
This seminar will give an overview of the additional buyers stamp duties regime, including recent initiatives by the CSD with regard to “99-to-1” co-ownership arrangement. Participants will understand why the 99-to-1 arrangement is carried out and why it is frowned upon by the authorities.
Expert speaker Hern Kuan will outline the legal and practical issues surrounding stamp duties and ABSD, including his experience in engaging the CSD on behalf of clients who have carried out their purchases under a “99-to-1” arrangement.
A Highlight of Key Areas:
1. Introduction to Stamp Duty and ABSD
- Overview of the Stamp Duties Regime
- Fundamental principles
- Electronic instruments (Oct 2018) - Introduction to ABSD
- Scope and Mechanics
- Policy behind ABSD
2. The CSD’s initiatives on “99-to-1” transactions
- Understanding “99-to-1” and the recent audits on “99-to-1” property transactions
- What is a “99-to-1” transaction and why it is advantageous to carry it out
- Is “99-to-1” stamp duty avoidance?
- Key points on stamp duty avoidance
- 5 different case studies - Reliefs applicable to “99-to-1” ABSD scenarios
- What to do when assessed in “99-to-1” ABSD scenarios - Dispute Process
- Objections
- Procedure before High Court - Strategies for compliance and mitigation
- Voluntary disclosure
- Legal Professional Privilege