RES exam question on Taxes & Duties: Mr Seng's 2026 property tax bill of $4,800 on his let condominium, dated December 2025…
Mr Seng's 2026 property tax bill of $4,800 on his let condominium, dated December 2025, fell due on 31 January 2026. He has objected to the Annual Value and has not paid, believing the bill will be revised in his favour. (i) A late payment penalty of 5%, here $240, is imposed on the unpaid tax. (ii) His pending objection suspends payment, so no penalty arises until IRAS decides it. (iii) IRAS may recover the overdue tax only by suing him, not through any third party. (iv) Had he paid by GIRO instalments instead, interest of 5% would have been added to each instalment. Which of the statements above is/are correct?
- A(i) and (ii) only
- B(iii) and (iv) only
- C(i) only
- D(i), (iii) and (iv) only
Show answer & explanation
Answer
C. (i) only
Explanation
Answer: (i) only. Tax unpaid by the due date draws a 5% penalty, and an objection does not defer payment.(i) True. 5% of $4,800 is $240.Watch out: IRAS's recovery tools go beyond suing: it may also sell the property by public auction.Rule: The annual bill is due by 31 January or the date stated, and unless the owner is on an approved instalment plan a 5% late payment penalty is imposed on tax unpaid by then. Overdue tax can be recovered through appointed agents or a sale of the property.Source: IRAS, Late payment or non-payment of Property Tax (read 1 Oct 2026)
Why the other options are wrong
- (ii) False. An objector must still pay the tax as billed; any excess is refunded if the bill is revised.
- (iii) False. IRAS may appoint agents such as his bank, employer, tenant or lawyer, so his tenant can be made to pay.
- (iv) False. Owners may pay by up to 12 monthly GIRO instalments, interest-free.
Study the concept behind this question: Property Tax, GST & Tenancy Stamp Duty in Singapore
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