As reported in the press earlier, there are local private property transactions using "99-for-1 home ownership", whereby first-time buyers execute an option letter and then transfer 1% of the equity to a close relative who already owns another property.

In response to a query from CNA, the Internal Revenue Service said that the review will cover not only transactions where ownership is split 99-to-1, but also transactions where the second owner has more than 1 per cent ownership.

In a statement, the Inland Revenue stressed that it would review "the facts and circumstances surrounding such arrangements" and said that if tax avoidance was indeed found to have occurred, stamp duty payable would be recovered and an additional 50 per cent charge would be levied.

"If stamp duty and surcharges are not paid by the deadline, a penalty of up to four times the unpaid balance could also be levied."

The authorities also stressed that there is no statute of limitations on the transactions under review. This also means that cases or transactions from how long ago can be traced.