The scheme is a tax avoidance arrangement that reduces the rightful ABSD payable on the purchase of a residential property.
A businessman has sued a unit of mainboard-listed property agency PropNex, one of its agents, as well as a law firm – which handled two real estate transactions involving the purchases of 1 per cent interest – for about S$1.2 million.
Melvin Li has alleged that PropNex Realty agent Ian Sng and City Law had advised him that his purchase of a 1 per cent interest in each of his parents’ newly bought properties was legal, and that the transactions would be valid.
The move aimed to help fund his parents’ purchases because they were ineligible for bank mortgages, claimed the 43-year-old businessman.
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