Re: Since when buy/ sell property must pay GST?

Quote:

Originally Posted by leechron (10-09-2011, 10:19 AM) Simple rule : For all residental property no GST, apart from that all need GST.

My pt is simply:
Goods and Services Tax (GST) as the name goes should primarily be classified as a consumption tax.
Briefly, I understand that in the ownership of a commercial property, one would also incur stamp duty (SD) of about 3% at point of purchase as well as an annual property tax (ppty tax) of 11% of annual value.

The SD is paid to govt as an admin fee to govt to validate ('stamp') the sale whilst the property tax is the annual 'consumption' version of tax for immovable properties (i.e. buildings and such) on top of other minor fees maybe to govt engineers etc to inspect the building etc.

So isn't charging GST on a building purchase (in addition to annual ppty tax) DOUBLE TAXATION?

Unlike hamburgers and clothes, the ownership of a commercial building may pass through many hands. Isn't the govt worried about increasing the cost of running business by this illogical GST or has the greed for money blinded them to this illogicality?

Shouldn't the SG govt be in the business of simplifying things so as to improve trust and transparency? Or are they just money hungry officials who scheme daily of ways a tax or two for every occasion to sponsor their already stratospheric salaries?

That said, these GST tax schemes are biased towards GST registered companies as any such GST paid (full material costs) can TOTALLY be reclaimed back fr govt as 'input costs' with proof of a valid invoice (from another GST reg company). So what wisdom is there in skimming money off smaller (non-GST registered) companies?

BTW: many have attempted before to skim money off the govt with fake GST invoices and the following is just one e.g.: 'Man in biggest GST fraud case jailed, fined $17m' (13Aug2010)

Raise tax rates by all means but the SG govt shouldn't be applying the schemes of double/ duplicate taxation in its desperate grab for more money, worse, that of small and medium sized companies with the exception of larger (GST registered) MNCs.

From the Bible:
- "Leave them; they are blind guides. If the blind lead the blind, both will fall into a pit."~ Matthew 15:14 [wiki]

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At/ related:

21Sept2011: Re: Since when buy/ sell property must pay GST?