Flipper's Tax (and it's repeal)

The Government has come out with an anti-speculation measure (though they insist it is not) which could put a dampener on flipper activity in the en bloc sale market. I don't think it will have a huge effect, but there could be some short term selling to beat the deadline for it's implementation. Flippers with multiple units sold over the last 4 years (with profits undeclared to the taxman) could be saddled with a large tax bill if they put themselves on the IRAS radar after 01 Jan 2010. Better to sell their unsold units now at a loss and lie low. Tax dodging is a fine art...

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Property Tax gains; up to IRAS to decide
Sunday Times - 12 July 2009
Property investors still jittery about tax policy
Sunday Times - 12 July 2009
Analysts-say-more-feedback-should-be-gathered-before-amending-tax-policy
ChannelNewsAsia - 10 July 2009
Draft Income Tax (Amendment) Bill 2009
Today- 10 July 2009
Government clears air over tax on property gains
Business Times - 10 July 2009
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There is also a PUBLIC CONSULTATION ON THE DRAFT INCOME TAX (AMENDMENT) BILL 2009

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If you are interested, the Ministry must receive your feedback (using the template provided) by 14 JULY 2009

Click on the above link for details.

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22 Aug 2009

The Government has decided to drop the implementation of the new property tax - with 64 feed back receieved , 60 were against the idea.

So, flippers can flip on.