Social News
Written by: Zhu Dixin
2020-12-15 15:28
Last update date: 2020-12-15 15:28
The government introduced Buyer Stamp Duty (BSD) in 2012 to curb the property market. In 2013, a female buyer purchased a residential property on behalf of another Hong Kong citizen for more than $7 million in the form of trust.
However, the Inland Revenue Department believes that although she and the beneficial holder are both permanent residents of Hong Kong, she did not act on her own behalf when she bought the property, so she had to pay about 1.07 million in stamp duty.
The female buyer was dissatisfied and filed a judicial review. Today (15th), she applied to the High Court for permission to review and questioned the reasonable connection between "Hong Kong people" buying properties on behalf of Hong Kong people and the policy purpose of curbing the overheating property market.
After hearing the submission, the judge postponed the announcement of the result in writing.
Buying properties on behalf of others in the form of trust
The applicant is Huang Yonghua (transliterated, hereinafter referred to as Huang), and the respondent is the Director of Stamp Taxation.
Huang bought a residential property on Kwun Tong Road in 2013 for approximately $7.18 million.
Huang later wrote to the Director, stating that she had purchased properties on behalf of others in the form of trust.
Pay stamp duty if not acting for individuals
The Director believes that although the beneficial owners of Huanghe's properties are Hong Kong permanent residents, Huang Buying a building does not act on her behalf. Therefore, he has to pay buyer's stamp duty, which is 15% of the property price, about 1.07 million yuan.
Huang’s lawyer presents today’s statement that it is legal in itself to buy properties on behalf of others in the form of trust, and there is no evidence to show that how a Hong Kong person buys properties on behalf of another Hong Kong person on trust is reasonably related to the policy purpose .
The purchaser can only be exempted if he acts in his personal capacity
The representative of the Department stated that the law has stipulated that the purchaser of residential property must be a permanent resident of Hong Kong and act as the purchaser in order to be exempted from the buyer's stamp duty. It also pointed out that the policy purpose of the buyer's stamp duty is to stabilize the Hong Kong property market. , To curb the overheating of the property market.
Increasing the cost of buying a property can achieve related effects.
Certificate No.: HCAL1479/2020
Xu Zhengyu: It is difficult to withdraw non-residential double stamp duty when it is difficult to promote employment
Policy Address 2020｜Abolishment of double stamp duty for non-residential residences starting tomorrow
Midland Bu Shaoming pays 15% double stamp duty to buy two houses in Lohas Park Montara for rent
Spicy trick double stamp duty rebate was ruled that only preferential "one-for-one" landlord tax bureau appealed
Owner wins judicial review and is sentenced to refund of double stamp duty. Government appeals against dissatisfaction
01News
Court of Judicial Review of Stamp Duty
