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Mdm Ng Chiew Yen, 56, and her son, Tan Kai Wen, Keith, 26, were sentenced for providing false information to the Inland Revenue Authority of Singapore (IRAS) during an audit of a ’99-to-1′ property purchase scheme.

This marks the first conviction for taxpayers providing false information to IRAS during an audit of ’99-to-1′ property transactions.

Ng and Tan were each convicted of two charges under section 65(2) of the Stamp Duties Act 1929, with three similar charges considered for sentencing. This offense carries a maximum penalty of a $10,000 fine, two years’ imprisonment, or both. They were each sentenced to two weeks’ imprisonment

Facts of the Case

This case stems from IRAS’s ongoing audit of ’99-to-1′ property transactions for potential tax evasion. Investigations showed Tan purchased a residential property in his sole name on September 24, 2021, and then sold a one percent share to Ng. IRAS initiated an audit of these transactions in 2023.

During the audit, IRAS requested information from Tan via email regarding the property transactions. When questioned about why he didn’t initially purchase the property jointly with Ng, Tan falsely claimed in his email reply:

• He made a rushed purchase, expecting family financial support.
• When his family couldn’t provide support, Ng was added as a joint owner to secure a loan.

Tan’s response was false; the true reason for not purchasing the property jointly was to evade Additional Buyer’s Stamp Duty (ABSD). Tan and Ng collaborated on the email reply, drafting and discussing versions before Tan submitted it to IRAS.

Later, when IRAS requested Tan to provide WhatsApp messages between Ng and the banker, Tan submitted incomplete WhatsApp messages, falsely representing them as Ng’s full correspondence. This constituted misleading information

Tan and Ng reviewed the WhatsApp messages with the banker and deleted those contradicting their false statements to IRAS.

For these actions, Tan and Ng were each convicted of two counts of conspiring to provide misleading information to IRAS. Three additional charges were considered during sentencing.

Under Section 65(2) of the Stamp Duties Act, providing false or misleading information to IRAS is punishable by a fine of up to $10,000, imprisonment of up to two years, or both.

Offence Uncovered During IRAS’ Audit

IRAS conducts regular audits of property transactions to detect non-compliance and tax evasion. The ’99-to-1′ audit is part of these efforts, aimed at uncovering arrangements designed to reduce or avoid stamp duty. Tax evasion determinations are based on the specific facts of each case.

’99-to-1′ property purchase schemes usually involve individuals with no prior property ownership initially buying residential properties in their own names. Shortly after, they sell a small share, like one percent, to someone with a higher ABSD profile. This structure aims to limit ABSD to the one percent share, rather than the full property value if purchased jointly from the start.

If IRAS determines tax evasion, it will recover the unpaid stamp duty and may impose a 50% surcharge on the additional duty owed. Stamp duty audits have no statutory time limit.

During an audit, individuals must cooperate and provide accurate information to IRAS. Providing false or tampered information is a criminal offense, punishable by fines and/or imprisonment.

Voluntary Disclosure

Those who participated in ’99-to-1′ property purchase schemes should voluntarily disclose them to IRAS. Depending on the situation, IRAS may consider these cases more favorably. For further details on voluntary disclosures, please visit the IRAS website.

Cash Rewards for Informants

Informants whose information leads to recovered tax may receive a reward of up to $100,000, which is 15% of the recovered amount. All reward payments are at the Commissioner’s discretion. Informant confidentiality is strictly maintained. To report malpractices, please use this form.

If your company needs help filing taxes for the year 2025, or requires assistance with Singapore incorporation, economy, banking, etc., feel free to call/WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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