A COUPLE who were taxed on the profits they made on a property deal (a Waterside apartment) appealed and won their case against the taxman. Their argument in this unusual case: they sold the apartment because of its bad fengshui. Although Singapore does not have capital gains tax, which is charged on profits from the sale of assets, many people may not know that the Inland Revenue Authority of Singapore (Iras) can tax individuals it deems to have traded in property. The couple found themselves in that situation. Justice Judith Prakash accepted their contention that the 1993 sale of the Waterside condo by the couple was not a trade - they had been compelled to sell it.

It is believed to be the first time Singapore courts have accepted bad fengshui as a legitimate reason for a property sale in a tax case.

Read the full report in Friday's edition of The Straits Times .