Houses bought for kids to avoid tax
( 2003-08-26 11:48) (China Daily)
Many parents in Shanghai have started purchasing apartments in the names of
their young children in order to avoid paying inheritance tax down the road,
Shanghai Evening Post reports.
The youngest property owner is a days-old infant. His father, who bought a
villa costing 800,000 yuan (US$97,000) in his son's name, said real estate was
becoming more and more expensive and that their children might end up having to
pay inheritance tax years from now for properties purchased in their parents'
names. So they are trying to beat the system.
Although the children "own" the property, their guardians are to look after
it until they come of age.
According to one survey, about 3 per cent of property owners in Shanghai are
children.
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