Why Did IRAS Up Property Valuation One Year Later?

Source : The Straits Times, Saturday, September 29, 2007

IN MARCH last year, my brother and I bought a private apartment valued at $420,000 by an external valuer, who had made an on-site inspection of the property.

All legal fees, bank loan, and government taxes were settled then.

However, more than one year later, we received a call from our lawyer in July, informing us that the Inland Revenue Authority of Singapore (Iras) had sent us a letter dated June 18, 2007, telling us that its Chief Valuer is of the opinion that the market value of our property as at Jan 23, 2006 should be $470,000 instead and that we should pay up the difference in the stamp duty of $2,100 by July 10.

The letter also mentioned that penalties would be imposed for late payment.

I have three questions for Iras:

* Why was Iras’ letter, dated June 18, 2007, received by our lawyer only on July 17?

* Why did it take more than a year for Iras to tell us that the valuation price should have been higher, and not at the time when we paid the stamp duty in March last year?

* How did the Chief Valuer make an assessment of the value of the property without making an on-site inspection to ascertain the physical condition of the property, which is an important factor in determining its valuation?

We have written to Iras on this issue but have yet to receive a satisfactory answer.

Ng Zhong Ren