Originally Posted by
Justloadit
In your case, because it is fixed property, part of the deed of sale states how the property is being paid.
You may not declare the foreign portion, however and state the sale was made at the local paid amount. What will transpire as far as the buyer is concerned, the property value is low, and the day that it is sold, the CGT will be the difference of the local amount against the latest sale amount, which means that a larger amount of supposedly profit was made, and the tax is calculated on this difference amount. Effectively it simply means your friend is going to pay more tax on the property the day he sells it.
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