AUCTION OF #03-06 PEK CHUAN BUILDING

Mr Chia Shi Teck asked the Minister for Finance (a) what are the reasons that led to the decision of the Inland Revenue Authority of Singapore to auction off the property at #03- 06 Pek Chuan Building at Lavender Street to recover property taxes due; (b) whether the auction price raised after deducting all expenses is enough to pay off the debts; and (c) whether further action will be instituted against the owner(s).

Dr Richard Hu Tsu Tau: The owner of the property at #03-06 Pek Chuan Building at Lavender Street owes a substantial amount in tax arrears. The owner had been given more than sufficient time to make payment but had ignored the warnings issued by the Inland Revenue Authority of Singapore (IRAS).

IRAS will auction off a property only where the tax arrears are substantial, an owner has repeatedly ignored warnings and has made no arrangements for payment, and all other enforcement measures have failed. If the auction price is sufficient, IRAS will only recover the tax arrears and expenses and no further action will be taken. However, if the auction price is insufficient, IRAS will continue to pursue the remainder of the arrears in accordance with the law.