38 Oxley Road was sold to Mr Lee Hsien Yang for an estimated $24 million in December 2015, about six months after the death of our former Prime Minister, Mr Lee Kuan Yew. The seller of the property donated the entire estimated $24 million sales proceeds to charity, and Mr Lee Hsien Yang donated $12 million (half the sale price) to charity.
Did the seller take a charitable donation tax deduction? If so, the estimated tax credit is about $13.2 million (2.5 times tax deduction assuming the highest marginal tax rate of 22 per cent). The seller’s annual salary is reported to be $2.2 million – which would compute to an estimated annual income tax of about $450,000.
So, does it mean that the estimated charitable tax credit of about $13.2 million may be enough to pay for about six years (maximum carry forward of five years) of the seller’ income tax?
Leong Sze Hian