Reject of Full Vacancy Claim for Resale HDB Flat Under Repair and Renovation

I have completed my sales of my private apartment on 7th January 2013 because of the high living cost and have at the same time purchased a resale HDB flat on 12th December 2012. The HDB flat that I purchased is in a tumbledown state that needed major repair and renovation in order to make it inhabitable again. Both toilets are leaking. Floor tiles are popping and the bedroom laminates are rocking. Such conditions are not reflected in the valuation report. But because of the low COV, I have decided to purchase it even though I need major renovation and repair to the flat before I could move in. Because of the extent of repair and renovation needed for this HDB flat, I have negotiated to the buyer of my private apartment to rent the private apartment for a month at $3000 so that I have enough time to repair and renovate my resale flat. In the meantime, my lawyer advised me that since I could not stay in the resale flat and need to rent an apartment during the repair and renovation period, I should be able to apply for Full Vacancy Claim for my resale flat. From IRAS website, I found the information on the conditions and method to make the full vacancy claim. According to the website, it stated that “if your property is continuously vacant for at least 30 days or a calendar month, you may claim a refund of tax for the vacant period if the property is: … or undergoing repairs to make it fit for occupation (repairs do not include renovations, fitting out, alterations, improvements and additions). Since my flat is under repair and renovation, I have gone ahead to file for a claim according to the website. Within days, I received a call from tax officer asking for details of my claim. I told him about my situation. I told him about the full vacancy claim because of repair and renovation but was surprised that he has no knowledge of such claim. He however agreed that I should be able to make such a claim. On 21st Jan 2013, I received a notice from a Tan Quee Chye from the IRAS informing me that as the property is undergoing renovation works but not repairs, they are not able to consider my claim for refund of tax for the vacant period. I am very disappointed on such a policy. The valuation of the property is derived from the potential rental income of the property. However, when the property is under repair or renovation, there is no possibility of rental income. In this case, I even need to pay rental to my buyer in order to tide me over during the repair and renovation period. And the casino government only care about collecting tax even when one could not derive any income during such a repair and renovation period. This is like collecting income tax when one is sick and hospitalized. This is very frustrating.