Category Archives: Tax Matters / Property Tax

Why does IRAS make ‘provisional’ tax deductions?

Posted on 27 May 2013 | Comments Off on Why does IRAS make ‘provisional’ tax deductions?

While doing a check of my bank account, I realised deductions were made this month by the Inland Revenue Authority of Singapore (IRAS) under its GIRO scheme. The sum deducted was the same as my monthly instalments for the Year of Assessment 2012.

Due to these deductions (which would presumably continue until the 2013 assessment is completed next month or July), I am now in a net credit position with the IRAS. This also happened in 2011 and last year, but I did not notice the deductions then.

This policy seems questionable. IRAS has also made no interest payments on these “advance payments” made or informed me of these deductions.

FROM HUANG WENSHAN

Source – Today : 27 May 2013

 

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Annual value of properties reviewed regularly

Posted on 15 May 2013 | Comments Off on Annual value of properties reviewed regularly

In his commentary, “Court ruling creates uncertainty for developers” (May 10), Mr Colin Tan seemed to suggest that the Glengary case was the first time the Inland Revenue Authority of Singapore had taken action to reassess the annual value of land under development.

This is not the case. The annual value (AV) of any property, including vacant land under development, is reviewed regularly to reflect prevailing market values in any year. Hence, the AVs may go up or down accordingly.

Real estate developers would be fully aware that the AVs of their lands are assessed on a “vacant land” basis during the development period.

This is provided for in the Property Tax Act, and it has been our long-standing position to disregard pre-sales when determining the AV of such vacant land.

For this case, the developer disagreed with our position and brought the matter to court.

The Court of Appeal has affirmed our position. Hence, the decision would not have introduced more uncertainty into the business of property development nor affected developers’ land bids, as the writer alluded.

FROM
WALTER LIM, DIRECTOR (CORPORATE COMMUNICATIONS), INLAND REVENUE AUTHORITY OF SINGAPORE

Source : Today – 15 May 2013

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Posted in Developers, HDB, Tax Matters / Property Tax

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