Real estate agency PropNex Realty is facing lawsuits from property buyers who were penalised by the Inland Revenue Authority of Singapore (Iras) for using the "99-to-1" property arrangement aimed at avoiding Additional Buyer’s Stamp Duty (ABSD). The lawsuits, which also name the involved property agents and law firms, stem from transactions that Iras later deemed as illegal tax avoidance.
In one case, Kevin Rahim, 28, and Jessica Tjitra, 32, sued PropNex, property agent Amos Koh, and CK Tan Law Corporation after being required to pay nearly $850,000 in ABSD and penalties. In their case, filed in the High Court in February 2025, the couple claimed that Amos Koh had assured them the 99-to-1 method was a lawful way to reduce stamp duty obligations.
Jessica Tjitra, who is from Indonesia and became a Singapore permanent resident in 2022, purchased a unit at Riviere condominium for $3.3 million under her sole name. As a new PR, her ABSD rate was 5 percent. Subsequently, she sold a 1 percent share of the unit to Kevin Rahim, who paid 30 percent ABSD on the small stake as a foreigner. However, in August 2024, Iras ruled that the arrangement was a case of illegal stamp duty avoidance and imposed a 30 percent ABSD on the entire purchase price, plus a 5 percent surcharge.
Amos Koh, in his defence, admitted that he had explained the 99-to-1 method to the couple, stating that he had learnt about it from CK Tan Law’s presentations and believed it was legitimate. PropNex argued that Koh was an independent contractor and not an employee, and the company should not be held responsible for his actions. The agency also said that Koh’s commissions were paid solely by the Riviere developer and not by the buyers. CK Tan Law Corporation countered that the possibility of Iras later altering the transaction terms did not necessarily render the arrangement illegal at the time.
Separately, in another lawsuit filed in January 2025, Melvin Li, 43, sued PropNex, property agent Ian Sng, and City Law over a $1.2 million penalty from Iras. Li had bought 1 percent stakes in two condominium units, one each from his father and mother at Piccadilly Grand and Pullman Residences. The move was intended to help his parents, who were unable to qualify for bank loans, finance the property purchases by leveraging Li’s name for the mortgage.
Li alleged that Ian Sng had assured him via WhatsApp that the transactions were legal and commonly practised. Sng also reportedly said that the arrangement, referred to as the "100-sell-1" method, was introduced by PropNex colleagues and validated by legal firms. Sng further recommended City Law to handle the paperwork.
However, after seeking confirmation from Iras, Li discovered that his transactions violated stamp duty laws. He was then held liable for full ABSD rates on both properties – 17 percent on one and 25 percent on the other – in addition to surcharges.
In their joint defence, PropNex and Sng stated that Sng acted as a marketing agent for the developers and that he merely relayed information he had gathered from legal and financial training. Sng denied knowingly making any false representations. City Law, in its defence, said that when it came into the picture, the purchases under the 99-to-1 structure had already been decided.
The lawsuit involving Rahim and Tjitra is set for an administrative hearing on April 30, 2025, while Li’s case is expected to proceed to mediation.
These lawsuits come amid heightened scrutiny from tax authorities, after Iras revealed in May 2024 that it was clawing back approximately $60 million in ABSD and penalties from 166 cases where the 99-to-1 arrangement and similar structures were used to avoid taxes.
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