Desmond Ng Teng Poh (“Ng”), a 48-year-old sole shareholder and director of Studioholic Private Limited (“SPL”), has been charged in Court for assisting his company SPL to evade Goods and Services Tax (GST) by overstating input tax of $351,506 in SPL's quarterly GST return ending March 2018. The input tax claimed was for fictitious purchases that SPL had never made. Ng also faced three other charges of assisting SPL to evade tax by giving false information to the Comptroller of GST with falsified documents between May and July 2018, which resulted in GST undercharged totalling $469,393.

The accused is the third person that Inland Revenue Authority of Singapore (IRAS) has prosecuted in the past one year for giving false information to IRAS officers during the course of audits and investigations.

Mr Lawrence Eng, Assistant Commissioner of IRAS’ Investigation and Forensic Division, said, “IRAS takes a serious view of non-compliance and tax evasion, as well as those who deliberately lie to IRAS officers when they are called up for interviews or audits. We would like to remind businesses and individuals that they are required to provide full cooperation when IRAS requests for information and supporting documents.” 

Severe Penalties for GST Evasion
It is a serious offence to wilfully submit false GST returns by overstating any input tax, understating any output tax or including fictitious claims. Upon conviction, offenders may face a penalty of three times the amount of tax undercharged, in addition to a fine not exceeding $10,000 and/or imprisonment for a term not exceeding 7 years. 

Serious Consequences for Providing False Replies Verbally or in Writing to IRAS 
Offenders found guilty of giving false answers verbally or in writing to any request for information by IRAS in order to evade tax will face a penalty of three times the amount of tax undercharged, and be liable to a fine not exceeding $10,000 and/or imprisonment for a term not exceeding 7 years. 

Reporting of Malpractices
Businesses or individuals are encouraged to immediately disclose any past tax mistakes. IRAS will treat such disclosures as mitigating factors when considering action to be taken. Those who wish to disclose past mistakes or report malpractices can write to:

Inland Revenue Authority of Singapore
Investigation & Forensics Division
55 Newton Road, Revenue House
Singapore 307987

Email: [email protected]

Cash Rewards for Informant

A reward based on 15% of the tax recovered, capped at $100,000, will be given to informants if the information and/or documents provided lead to a recovery of tax that would have otherwise been lost. All payments are at the discretion of the Comptroller. IRAS will ensure that the identities of informants are kept strictly confidential.

Inland Revenue Authority of Singapore