BQY & BQZ v Comptroller of Income Tax: Income Tax on Property Resale Profits
BQY and BQZ appealed to the High Court of Singapore against the Comptroller of Income Tax's decision to subject the profits from the resale of three properties to income tax. The Income Tax Board of Review dismissed their initial appeal, and Choo Han Teck J of the High Court also dismissed their appeal on 29 March 2018, finding that the properties were purchased with the intention of reselling them for profit, thus making the profits taxable.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Appeal dismissed.
1.3 Case Type
Tax
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding income tax on profits from resale of three properties. The court dismissed the appeal, finding the properties were purchased for resale.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Comptroller of Income Tax | Respondent | Government Agency | Appeal dismissed | Won | Zheng Sicong of Law Division, Inland Revenue Authority of Singapore Lau Kai Lee of Law Division, Inland Revenue Authority of Singapore |
| BQY | Appellant | Individual | Appeal dismissed | Lost | |
| BQZ | Appellant | Individual | Appeal dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Zheng Sicong | Law Division, Inland Revenue Authority of Singapore |
| Lau Kai Lee | Law Division, Inland Revenue Authority of Singapore |
| Ong Sim Ho | Ong Sim Ho |
| Khoo Puay Pin Joanne | Ong Sim Ho |
| Keith Lam | Ong Sim Ho |
4. Facts
- Appellants bought three properties within two kilometers of each other.
- Wilby Road property was bought on 29 June 2005 for $5.4m and resold on 17 March 2006 for $6.25m.
- Brizay Park property was bought on 21 October 2009 for $20.4m and resold on 26 July 2010 for $35m.
- Garlick Avenue property was bought on 19 October 2010 for $18.7m and resold on 11 January 2011 for $21.8m.
- Appellants never moved into the three properties in question.
- Appellants moved into Binjai Park property after the Comptroller started asking questions.
- Appellants retained their original home at West Coast Road.
5. Formal Citations
- BQY and another v Comptroller of Income Tax, HC/Tax Appeal No 24 of 2017, [2018] SGHC 75
6. Timeline
| Date | Event |
|---|---|
| Wilby Road property purchased | |
| Wilby Road property resold | |
| Brizay Park property purchased | |
| Brizay Park property resold | |
| Garlick Avenue property purchased | |
| Garlick Avenue property resold | |
| Comptroller started asking questions | |
| Binjai Park property purchased | |
| Board dismissed the appellants’ appeal | |
| Judgment reserved | |
| Judgment issued |
7. Legal Issues
- Taxability of profits from resale of properties
- Outcome: The court held that the profits were taxable as the properties were purchased for resale with a view to making a profit.
- Category: Substantive
8. Remedies Sought
- Appeal against the Comptroller's decision
9. Cause of Actions
- Income Tax Assessment
10. Practice Areas
- Taxation
- Real Estate Law
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Income Tax Act (Cap 134, 2014 Rev Ed) | Singapore |
| Section 10(1)(g) of the Income Tax Act (Cap 134, 2014 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Good Class Bungalow
- Resale of properties
- Intention to profit
- Taxable income
- Capital gain
15.2 Keywords
- Income Tax
- Property Resale
- Singapore
- Tax Appeal
- Real Estate
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Revenue Law | 95 |
| Income taxation | 95 |
| Property Law | 50 |
16. Subjects
- Tax Law
- Property Law