Avoiding ABSD Through Sham Deals Can Cost You Your Property
Avoiding ABSD Through Sham Deals Can Cost You Your Property
Artificial ownership arrangements created mainly to avoid Additional Buyer’s Stamp Duty (ABSD) may lead to serious legal, tax and financial consequences.
Saving ABSD through questionable structures can end up costing far more than the tax itself.
What Happened?
Some buyers use “99-to-1” ownership arrangements, nominee structures or family-member transfers to reduce or avoid ABSD.
However, if the true intention is to evade tax rather than reflect genuine ownership, the court may treat the arrangement as a sham.
Why This Matters
Courts and authorities look at the substance of a transaction, not merely the paperwork.
If the beneficial ownership does not match the documents, the arrangement may be challenged.
Impact on Property Buyers
- Do not assume 99-to-1 arrangements are automatically safe.
- Every owner should have a genuine beneficial interest.
- Nominee or trust arrangements must be properly documented and lawful.
- Get proper legal and tax advice before restructuring ownership.
TopBroker View
For investors, ABSD planning must be done carefully and lawfully. A short-term attempt to reduce tax exposure may result in
long-term losses, penalties, disputes and even loss of property ownership.
In today’s market, proper structuring is not just about saving cost — it is about protecting ownership, compliance and future exit value.
Need Property Structuring Advice?
Speak with TopBroker before making your next property move.
