On 21 February 2014, IRAS stated in its website its response to Mr. Yeo Chee Kean for his feedback on the Straits’ Time forum on 18 February 2014.
What is important to note is that gains arising from property disposal do not by themselves become non-taxable capital gains. Instead, depending on the circumstances under which the property was disposed of, the gains might be considered income in nature and thus, are subject to tax. Taxpayers are reminded that in tax law, a one-off gain could still be regarded as an income.
We would recommend our readers to seek professional tax advice on their proposed property purchase and disposal so that they can assess whether the eventual gains may be contested by IRAS as income and subject to tax accordingly.
If you have any questions regarding the above, please contact us at firstname.lastname@example.org.