RES exam question on Taxes & Duties: Ms Liew exercised an Option to Purchase for a condominium and paid $44,600 of Buyer's…
Ms Liew exercised an Option to Purchase for a condominium and paid $44,600 of Buyer's Stamp Duty. Two months later she and the seller agreed in writing to rescind the sale because her bank loan fell through. She asks her lawyer about getting the duty back. (i) The BSD may be remitted except for the first $50, if the remission conditions are met. (ii) Her application for the remission is to be made within six months from the date of rescission. (iii) Remission is refused if she rescinded so that the seller could sell the unit to someone else. (iv) She should keep the original option and proof of the rescission, as IRAS may ask for them. Which of the statements above is/are correct?
- A(i) and (ii) only
- B(ii), (iii) and (iv) only
- C(i), (ii) and (iii) only
- DAll of the above
Show answer & explanation
Answer
D. All of the above
Explanation
Answer: All of the above. Each statement restates a condition or step of the remission, so she can recover $44,550.(i) True. Buyer's Stamp Duty in excess of $50 is remitted on a rescinded agreement, so the first $50 is kept.(ii) True. The application must be made within six months from the date of rescission.(iii) True. No remission where the purchaser rescinded to help the vendor dispose of the property to another person.(iv) True. Applicants keep the original Option to Purchase and evidence of the cancellation, to produce when IRAS asks.Watch out: The remission also needs the agreement to have been rescinded on or after 18 February 2005; that is met here.Rule: Buyer's Stamp Duty, Additional Buyer's Stamp Duty and Seller's Stamp Duty above $50 are remitted on an aborted sale if the purchaser did not rescind to facilitate the vendor's sale to someone else and applies in time. The applicant must keep the documents as evidence.Source: Stamp Duties (Aborted Sale and Purchase Agreements) (Remission) Rules; IRAS, Aborted Sale and Purchase Agreements (read 1 Oct 2026)
Study the concept behind this question: Stamp Duties Explained: BSD, ABSD & SSD (Singapore, 2026)
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