Low Soon Leong ("Low"), aged 50, is a company director of BW Automobiles Pte Ltd ("BWAPL", a used car dealer) who has been charged with abetting his company to understate over $6 million in the company’s Income Tax returns for the Year of Assessment (YAs) 2011 to 2013. The company had only declared a total of $1.24 million of income in its tax returns over the same three YAs. The understatement of income resulted in tax undercharged of over $1 million.

Of the three charges, the prosecution proceeded with one charge against Low for abetting the company to omit income from its tax returns without reasonable excuse, with the remaining two charges being taken into consideration during sentencing. Low was ordered by the Court to pay a penalty of $1,006,122, which is two times the tax undercharged, and a fine of $5,000.

IRAS Warns Against Tax Evasion

IRAS takes a serious view of non-compliance and tax evasion. There will be severe penalties for those who wilfully evade tax. Taxpayers are responsible for the information declared in their income tax returns. The authority will not hesitate to bring offenders to court. Penalties for tax evasion can be up to four times the amount of tax evaded. In certain situations, jail terms may also be imposed.

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 Informants

A reward based on 15% of the tax recovered, capped at $100,000, would 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