Results 1 to 2 of 2

Thread: Let property assessment be more transparent

  1. #1
    mr funny is offline Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Let property assessment be more transparent

    http://business.asiaone.com/Business...07-184398.html

    Mon, Dec 07, 2009

    The Straits Times

    Let property assessment be more transparent


    THE system of property taxation in Singapore, apart from hotels, relies on an assessment of the 'market rent' of a property called the annual value (AV). A rate (currently 10 per cent) is then fixed to the AV to arrive at the annual tax payable.

    While this system has an obvious benefit of giving the taxman the upper hand to fix the level of property tax, despite market movements, it lacks transparency. The law stipulates that the property owner must pay the tax first, regardless of whether the AV was fixed correctly or not. If he disagrees with the assessment, he can object to it, and eventually go to the Valuation Review Board (VRB) for arbitration.

    The channel for objection and appeal seems to provide a fair means to examine the assessment by the authorities, but it suffers two deficiencies.

    * First, it is time-consuming and an objection can stretch for years and still not be attended to.
    * Second, it is costly to start an appeal to the VRB because each case costs $200. So if a building has 100 units for appeal, it will cost $20,000.

    As a start, perhaps the authorities can publish on their website the level of assessment of each year's review so property owners can know how these assessments compare with market rents.

    In the long run, the Government should look into taxing property owners for the actual rents they fetch, with a right to review them if they should appear low compared with market rents.

    Patrick Sio

  2. #2
    Join Date
    Apr 2008
    Location
    The Anchorage
    Posts
    67

    Default

    Your suggestion that IRAS tax according to the actual rent received cannot work for properties that are owner-occupied.

    The Chinese character for government has "two mouths".

    If you can accept the fact that no minister anywhere else in the world is paid a million dollars a year or more and continue to live in Singapore, what's the big deal about some property tax?

    That's why some of my friends insist on renting their homes and let their landlords suffer the kind of heartache you are experiencing.

Similar Threads

  1. Issues with assessment of SRX's HDB data
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 12-07-16, 02:07
  2. Enforcing the law for a more transparent property market
    By vip in forum Singapore Private Condominium Property Discussion and News
    Replies: 2
    -: 03-06-15, 17:33
  3. China's Property Prices to become more Transparent
    By mcmlxxvi in forum HDB, EC, commercial and industrial property discussion
    Replies: 2
    -: 23-03-11, 11:08
  4. One transparent valuation for property market price, please
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 05-07-08, 23:10
  5. Moves to make property market more transparent
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 22-01-07, 13:06

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •