Tan Kai Wen Keith, 26, had bought a condominium unit in his name before selling a 1 per cent share to his mother, 56-year-old Ng Chiew Yen.
This two-step transaction enables one party who already owns another property to avoid paying additional taxes while still being eligible to jointly apply for a home loan.
By structuring the transaction this way, ABSD is payable only on the 1 per cent share of the property, rather than the full value of the property if the purchase was done jointly at the outset.
