ABSD not to be imposed on the Charity Unit worth $6.6m: Court
In a recent court case, the High Court concluded that a Singapore condo unit in Goodwood Residence which had been bought for a purpose of charity should not be subjected for, the Additional Buyer’s Stamp Duty also known as ABSD. The High Court held that the amount of $986,965 along with the delayed charges paid during the last year should be fully retransferred back to the taxpayers.
The $6.6m worth unit that was bought by the charity “Chew How Teck” Charity foundation in the year 2015 was subjected to a 15% ABSD by the Commissioner of Stamp Duties. The primary objective of having cooling measures which include imposing ABSD on entities or foreigners who purchase a private residential property in Singapore was to control property values from the year 2011.
The Foundation
The charity was to trigger medical researching and financially assisting cases that encountered hardships. The foundation, founded by Mr. Chew Thong in the year 1994. On his death, according to his will, the property was let to use by his wife and eventually the ownership to be transferred to the charitable movement built with kind thoughts in his mind.
Property along Chee Hoon Avenue worth 22.8 million
In the year 2014, the High Court gave permission and authority to the executors of the will of Mr Chew to trade his property along Chee Hoon Avenue for a price of $22.8 mil and spend a portion of the money to purchase condominium unit at Goodwood Residence for Madam Zhao. The remainder would be used for charity purposes.
Even though Madam Zhao is a local and will not be subjected to a 15% ABSD, however the unit will be purchased in the name of the registered charity foundation.
In this case the trustees including the lawyer Joanna Yap Hui Min requested, appealed the High Court, challenging the decision of the Commissioner where ABSD is not required to be paid which was established with a clear charitable purpose.
Refer to link below to find out more about this dispute
http://www.straitstimes.com/singapore/courts-crime/no-absd-on-66m-unit-for-charity-court
Do note that if you are a Singapore Citizen and is looking to purchase your first residential property, you will not be affected by the ABSD. And to purchase a Singapore Condo at its most affordable price, consider getting a new launch directly from the developer. Below are our list of new launch condos whereby you can enjoy direct developer sales.
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