Dear sifus sekalian,

My friend and his siblings have just acquired a piece of land and the land title is under their personal name. My friend also owns a company operating child care centre. He is willing to let his Company pay for the cost of the land (deposit+term loan installments) provided that his siblings bestow upon him the right to use the property and build a childcare centre.

My question is,can the payments by Company can be capitalised in their books? is there any deemed RPGT or tax issues? If cannot capitalise, Company can expense off and the benefit from the payment is capital gain on my friend's part and thus, is non taxable gain?



This post has been edited by piggy2008: Jul 24 2020, 09:38 PM

I mean the term loan is under their personal name but the Company will pay for the installments.

But then they will have to declare rental income in their personal tax which they did not get.