Hi all,

Due to some personal reason, I sell off a property with no profit earning (Sell off at Bank Loan Amount). Initially i was informed by lawyer i do not need to pay tax since I do not gain any profit. However, last week i received a letter from LHDN asking me to pay the tax. From the letter : -

Keuntungan Rm81000
Cukai dikena bayar Rm26730

1. I sell off at bank loan amount, how they calculate as profit Rm81000?
2. I never get any profit why i have to pay tax?
3. Anyway to eliminate the tax?

Thanks lot.....

did you refinance?

Last time you bought the property, what is the price? Need to compare purchase price and current selling price. Never look at the bank loan amount.

Sell at S&P price = no gain

This does not equal to sell at bank loan amount, especially after refinance

Check with your S&P lawyer, they are the one help you to submit for LHDN... I sold mine and my lawyer did ask me to sign on the LHDN form.

This post has been edited by JustNobody: May 30 2016, 10:30 AM

No refinance.

I bought at 340k
Sell at 300K
Current market value 420K

Then how LHDN can conclude your profit is 81K? Need to check further, can ask your lawyer to check for your.

Anyhow, we are entitle to apply for RPGT waive once in our lifetime.

Aiks, sell at loss some more. Need to determine with the lawyer and please refer to the SnP price. If you're selling at current MV, then it is true that's the profit is 80K.

Did you provide your previous SPA to your lawyer? You need to do it asap and ask your lawyer to appeal for you since you are selling at loss. No issue with that if you can provide the relevant info.

IRB these days like to cincai impose RPGT if you dont provide enough information.

Lhdn will calculate based on mv, your cases so obvious hidden agenda, why make loss when can make money?

normally gov has their own valuation to calculate stamp duty and even rpgt despite you selling below market value, you may have to prove both buyer and seller are unrelated

There is an anti avoidance provision under the RPGT Act, i.e. s.25(2):-

(2) The Director General, where he has reason to believe that
any transaction has the direct or indirect effect of—
(a) altering the incidence of tax which is payable or suffered
by or which would otherwise have been payable or suffered
by any person;
(b) relieving any person from any liability which has arisen
or which would otherwise have arisen to pay tax or to
make a return;
Real Property Gains Tax 27
© evading or avoiding any duty or liability which is imposed
or would otherwise have been imposed on any person by
this Act; or
(d) hindering or preventing the operation of this Act in any
respect,
may, without prejudice to such validity as it may have in any other
respect or for any other purpose, disregard or vary the transaction
and make such assessments as he considers just and proper in the
circumstances.
(3) In this section “transaction” means any trust, grant, covenant,
agreement, arrangement or other disposition or transaction made
or entered into (whether before or after the commencement of this
Act), and includes a transaction entered into by two or more persons
with another person.

If the DG has reason to believe that you are evading tax on purpose, they can calculate your RPGT payable based on their assessment and disregard your selling price. For example, in your case, if they have reason to believe that you are doing so to evade tax, they can calculate say based on the market value of the property and disregard the selling price stated in the SPA.