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Iras should give more details on how it assesses annual value of properties

Recently, the Inland Revenue Authority of Singapore (Iras) increased the annual value of my commercial property, in spite of the depressing slowdown in our economy and gloom in the property market, with declining rental yields.

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Dennis Ong Chin Siew

Recently, the Inland Revenue Authority of Singapore (Iras) increased the annual value of my commercial property, in spite of the depressing slowdown in our economy and gloom in the property market, with declining rental yields.

I wonder if Iras is in tune with the present reality.

When the economy and property market are doing well, it follows that the annual value of properties should go up. But when the economy and property market are not, it is hardly an opportune time to burden taxpayers with higher taxes.

Would doctors and hospitals increase healthcare fees during epidemics?

I would also urge Iras to be more transparent with how it assesses the annual value of properties.

A statement saying that the annual value of one’s property is “reasonable in view of the actual rent and comparative rents of similar properties in the vicinity” tells the taxpayer very little.

Without more information, the taxpayer either yields or engages, at his or her own expense, an independent valuer to disprove the assessment.

A taxpayer has the right to Iras’ appeals process to raise objections, but without information and evidence, it would be as good as going to battle without weapons.

Can Iras provide additional information on how it assesses the annual value of properties, beyond what is already shared with taxpayers and on its website?

Iras could be more transparent with its assessment methodology and disclose the rental yields of similar properties in the vicinity when calculating the annual value.

Also, does Iras take into account properties where taxpayers are unable to find a tenant despite reasonable effort?

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