Stamp Duty: ‘Objective’ Market Value Used

Source : The Straits Times, Thursday, October 11, 2007

I REFER to the letter by Mr Yeoh Lian Chuan, ‘Iras has no general power to insist on ‘market value'’ (ST, Oct 9).

Under the law, where the Commissioner of Stamp Duty is of the opinion that the consideration is inadequate, the proper market value of a property may be substituted for stamp-duty purposes.

Whether the consideration is inadequate is determined on an objective basis, on the face of the transaction. A taxpayer who does not agree with the stamp duty assessed can lodge an objection to the commissioner and appeal to the High Court if he is dissatisfied with the outcome.

The commissioner exercises this power judiciously and only when the consideration declared is clearly inadequate.

We thank Mr Yeoh for his views.

Chin Li Fen (Ms)
Assistant Commissioner
(Corporate Services Division)
Inland Revenue Authority of Singapore