A former property agent, Cheong Sai Chong (“Cheong”), was convicted for using a counterfeit stamp certificate in a property rental transaction and for issuing an invoice showing a Goods and Services Tax (GST) amount of $315 when he was not authorised to do so. He was sentenced to 5 weeks’ jail and ordered to pay a total penalty and fine of $2,145.

Facts of the Case

1. IRAS’ Review Exercise Discovered the Counterfeit Stamp Certificate
   
   

   Stamp duty is payable by the tenant on the lease or agreement for the lease of any immovable property. In Sept 2013, IRAS reviewed the compliance rate of stamp duty for tenancy agreements and found that the tenancy agreements for certain properties had not been stamped, and stamp duty had not been collected. 

   Investigations revealed that Cheong, whose real estate licence had expired on 1 July 2012, had collected money from the tenant of a rental property to pay for the stamp duty. He then created a counterfeit stamped certificate and handed it to the tenant.
   

2. Unlawful Collection of GST
   
   Cheong was also paid an agent’s commission by the landlord for arranging the tenancy agreement for the said property. Although he was not authorised to collect GST, he charged GST and provided an invoice showing the GST amount on his commission fee. Cheong admitted that the invoice he created was a counterfeit of the invoice from Dennis Wee Realty Pte Ltd (of the Dennis Wee Group), which was authorised to collect GST. 
   

Court Sentences

Cheong pleaded guilty to one charge of using counterfeit stamped certificate in a property rental transaction that he had arranged. He also pleaded guilty to one charge of unlawful GST collection. The court sentenced Cheong to 5 weeks’ jail   and was ordered to pay a penalty of $945, three times the amount of GST unlawfully collected, and a fine of $1,200.

Severe Penalties for Unlawful Collection of GST

It is a serious offence for businesses that are not GST-registered to charge and collect GST from their customers. Offenders face a penalty of 3 times the amount of tax unlawfully collected, and a fine of up to $10,000 for each offence. 

Crime to Use Counterfeit Stamp Certificates

Stamp duty is paid on documents or agreements relating to properties. These include tenancy or lease agreements, options to purchase, and sale and purchase agreements. A stamp certificate is issued to certify that a certain amount of stamp duty relating to the document or agreement has been paid.

IRAS takes a very serious view of any individual or business that deliberately forges stamp certificates and knowingly misrepresents counterfeit "certificates" as genuine. They may face fines of up to $10,000 and/or up to three years' imprisonment. Penalties of up to four times the stamp duty payable may also be imposed for late or non-stamping of documents.

Online Check on Stamp Certificate Authenticity

IRAS reminds potential tenants and property buyers to check the authenticity of the stamp certificates in their possession by visiting the e-Stamping website, https://estamping.iras.gov.sg (Stamp Duty Resource > Check Stamp Certificate Authenticity). An authentic stamp certificate should bear the full details of the stamp duty payment, description of the document, address of the property, stamp duty amount, and date of document. All these details should also match the information shown on the e-Stamping website. 

If the stamp certificate appears dubious or incomplete, please contact IRAS to verify the authenticity of the stamp certificate.

Reporting of Suspicious Stamp Certificates

If you suspect that you have been presented with a counterfeit stamp certificate, or know of any wrongdoing associated with stamp certificates, please contact IRAS immediately at the following:

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 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 would ensure that the identities of informants are kept strictly confidential.

Inland Revenue Authority of Singapore