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Singapore GST - Fraudulent GST Refund Claims Uncovered

Taxpayer was sentenced jail and ordered to pay fines due to Fraudulent GST claim in Singapore. Check out our latest blogpost for details.

It was reported on IRAS’ Website on 19 February 2016 that Tan Wan Wen (Tan) was sentenced to 8 weeks in jail, ordered to pay a penalty of $55,000 (3X the amount of GST refunds that were fraudulently claimed using multiple shell businesses.

IRAS’ audit revealed that Tan’s businesses were registered under different individuals’ names. What happened was that Tan made use of the names of several…

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#GST #Tax Evasion

Income Tax - PIC Fraud

A Tax Fraud in Singapore enables the SIngapore tax authorities to impose a combined tax penalty of 11 times of the amount of tax defrauded. Find out how ...

It was reported on IRAS’ website on 19 February 2016 that One IT Distribution Pte Ltd (OITPL) and its director, Alan Ang Soon Teck (Ang), have been convicted of assisting Chuan Huat Electronics Pte Ltd (CHEPL) to obtain a higher amount of Productivity and Innovation Credit (PIC) cash payout to which CHEPL was not entitled. CHEPL was convicted of giving false information in the PIC cash payout…

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#Income Tax #PIC #PIC cash payout #Tax Evasion

Income Tax - An Online Website Operation Was Convicted of Tax Evasion

Income Tax – An Online Website Operation Was Convicted of Tax Evasion

Many years ago I had a conversation with one of my good friends regarding the need to report income earned from conducting online business from Singapore in his income tax returns. My view has always been that “unless the law specifically provided otherwise, income earned by a person in Singapore is subject to Singapore income tax. In my friend’s case, his income would constitute trade/…

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#Income Tax #Online Business #Tax Evasion

Income Tax - Taxpayer Jailed for Tax Evasion and PIC Fraud

Owner of Social Escort Agency in Singapore Jailed for Tax Evasion and PIC Fraud - find out what happened in this case.

Boss of Social Escort Agency Jailed for Tax Evasion and PIC Fraud

It was reported on IRAS’ website on 11 February 2016 that Chew Tiong Wei (Chew), a sole-proprietor of a social escort business, was convicted of tax evasion and PIC fraud.

IRAS’ investigations revealed that Chew was first arrested by the Singapore Police Force (SPF) for vice-related offences in December 2014, and then he was found…

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#IRAS #PIC #PIC cash payout #Tax Evasion

International Tax - Updates on Country-by-Country Reporting

31 countries have concluded the Multilateral Competent Authority Agreement for the automatic exchange of Country-by-Country reporting. Find out what this means to MNEs

31 countries have concluded the Multilateral Competent Authority Agreement (“MCAA”) for the automatic exchange of Country-by-Country reporting. The OECD is of the view that the MCAA will enable consistent and swift implementation of the new Transfer Pricing Reporting Standards developed under Action 13 of the BEPS Action Plan.

What this means is that the tax authorities to the MCAA has now the…

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#BEPS #Country-by-Country Reporting #International tax #IRAS #Transfer Pricing

Income Tax - Processing Time for PIC Cash-Payout Clarified

In my tax training yesterday, some participants wonder why it has been taking "so long" for IRAS to process the PIC Cash Payout Application. Some participants are also worried about whether IRAS might reject such application. Let's find out what happened!

In my tax training yesterday, some participants wonder why it has been taking “so long” for IRAS to process the PIC Cash Payout Application. Some participants are also worried about whether IRAS might reject such application.

It has been clarified by IRAS that it strives to disburse the cash payout within three months upon receiving a taxpayer’s complete application. Most of the time, IRAS…

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#Income Tax #PIC #PIC cash payout

Income Tax - What are the indicators suggesting that you could be asked to participate in an unacceptable PIC arrangement?

If an incorrect PIC cash payout claim is made based on wrong advice by vendors, salespersons and consultants, you will still have to pay a penalty and/or face imprisonment because you are ultimately responsible for the accuracy of your PIC application. Read this blogpost to find out why ...

From our recent experience, there has been an ever-increasing concern about vendors, salespersons and PIC consultants approaching taxpayers and offer to help them claim PIC cash pay-out. You should understand that where an incorrect PIC cash payout claim is made based on wrong advice by vendors, salespersons and consultants, you will still have to pay a penalty and/or face imprisonment because…

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#Income Tax #PIC #PIC cash payout #Tax Evasion

What happened when a computer distributor provided false information in PIC claim?

According to IRAS, 5 offenders have been prosecuted who are involved in PIC abuse cases. At the same time, IRAS is also actively investigating into several cases of alleged PIC abuses.

It was reported in IRAS’ website on 16 October 2015 that RC Components Pte. Ltd. (“RCPL”) and its director, Chan Keng Chun (“Chan”), have been convicted of providing false information in RCPL’s Productivity and…

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#Income Tax #PIC #PIC cash payout #Tax Evasion

Singapore GST - Price Display Requirement Clarified

Singapore GST – Price Display Requirement Clarified

If you are registered GST and you have been quoting your price like this: $1,000 + GST, then you must read the following ASAP because you have already breached the price display requirement under our GST Act …

If you are registered for GST, you should be aware that under GST Act, you are required to show GST-inclusive prices on all price displays (e.g. price tags, price lists, advertisements,…

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#GST #Singapore GST

GST - Clarification of Unauthorised Collection of GST

GST – Clarification of Unauthorised Collection of GST

Under Singapore GST Act, only GST-registered businesses are allowed to charge GST on their sales. The IRAS has recently indicated that they are aware that some businesses have been wrongly advised that they can collect GST before their application for GST is approved because IRAS would backdate their GST registration to the date when GST was first charged on their sales.

The IRAS has clarified…

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#GST #Singapore GST

Income Tax - Project Manager used Shell Entity and Falsified Records

Income Tax – Project Manager used Shell Entity and Falsified Records

It was reported in IRAS’ website that a former project manager of Yongsheng Engineering Pte Ltd (“YEPL”), Tang Lai Seng, was sentenced to 7 months in jail for wilfully omitting $321,000 in his income tax returns for Years of Assessment (“YAs”) 2011 and 2012, and thereby evading income tax of some $41,000. He was also ordered to pay a penalty of $166,000 which is 4 times of the amount of tax…

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#Income Tax #Tax Evasion

Income Tax - Deductibility of expenses on transportation services such as Uber Singapore

Income Tax – Deductibility of expenses on transportation services such as Uber Singapore

No doubt Uber is getting more popular in Singapore. Basically, it’s an online ride-booking app that helps commuters book a taxi or private car to take them to their desired destination for a fee that could be more expensive or cheaper than booking a regular cab depending on the time and availability of cars to book.

One income tax issue arising from this new trend is whether expenses incurred…

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#Deductibility #Income Tax #Motor car expenses #Uber Singapore

Australian GST - Imposing "Netflix Tax" or "Amazon Tax" in Australia from 1 July 2017

Australian GST – Imposing “Netflix Tax” or “Amazon Tax” in Australia from 1 July 2017

The Australian Government has recently announced that amendment to the current GST legislation will be made such that from 1 July 2017, non-Australian suppliers would be required to remit GST for sales of goods to Australian customers if the annual value of their taxable supplies is at least A$75,000.

This means that all goods sold to Australian customers by overseas vendors could be subject to…

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#Australian GST #GST Proposal #GST Registration

Income Tax - Managing Partner Convicted of PIC Fraud

Income Tax – Managing Partner Convicted of PIC Fraud

It was reported in IRAS’ website that a managing partner, Mr. Neo Leong Kiat of Mailcarp LLP (MC) was charged for submitting false information in order to obtain a Productivity and Innovation Credit (PIC) cash payout of $6,000 for his business which deals in email marketing solutions and software consultancy.

Neo submitted an application for a PIC cash payout based on the purchase of an…

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#Income Tax #PIC Claim #Tax Evasion

GST - Can input tax incurred on termination expenses be directly attributable to past taxable supplies made?

GST – Can input tax incurred on termination expenses be directly attributable to past taxable supplies made?

Input tax incurred on termination expenses cannot be attributed to past supplies. However, as the termination of a business is regarded as made in the course or furtherance of that business under the GST Act, expenses incurred for winding up would be regarded as residual input tax subject to apportionment.

Where the business has ceased to make any taxable supplies and thus could not claim any…

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#GST #Input Tax Claim #Termination Expenses

Singapore GST - Construction firm and its manager fined for unlawful collection of GST

Singapore GST – Construction firm and its manager fined for unlawful collection of GST

It was reported on IRAS’ Website on 27 July 2015 that GG Construction Pte Ltd (“GG Construction”) and its 42-year-old manager, Lee Tai Leong (“Lee”), have to pay a penalty totalling $227,000 and a court fine of $2,400 for unlawfully collecting a GST amount of approximately $38,000 when the company was not registered to collect GST.

IRAS’ GST audit reveals that GG Construction and Lee, were both…

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#GST #Penalty #Tx Crime

Income Tax - Revised e-Tax Guide on PIC

IRAS issued the Revised e-Tax Guide on PIC on 19 Sep 2014. Check our latest blog post on the latest amendment to the e-Tax Guide.

The e-Tax Guide on the Productivity & Innovation Credit (“PIC”) has been amended on 19 September 2014 to reflect the following changes:

1. To reflect the extension of PIC for another 3 years and the introduction of the PIC+ Scheme for qualifying SMEs as per Budget 2014.

2. Clarifying the conditions for the cash-payout option – the period for determining the 3-employee condition will be…

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#Income Tax #PIC

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