The couple had bought and sold those properties in quick succession and made around $1 million in profit.

Although there is no capital gains tax on property sale in Singapore, the Inland Revenue Authority of Singapore (IRAS) can tax any persons whom it regards as ‘property traders’.

In the current case, the Supreme Court ruled that a bungalow which they couple bought and resold within five months was indeed a property trade and ordered the couple to pay income tax on the profit.

In 1999 and 2000, IRAS ordered the couple to pay income tax on the profits of the sale of a Waterside condo, the Watten Close house and two houses in Jalan Sejarah and Chatsworth Avenue. (7 Sept)

Edited by Sam Gian – Independent Real Estate Sale Consultant