Research Fellow Convicted of GST Tourist Refund Fraud
9 Oct 2017
Engaged help of a tourist to
claim a GST refund on a diamond ring
A Research Fellow, Bai
Jiaming, aged 31, was convicted of two GST offences:
- Engaging
the help of a tourist to claim a GST refund of $1,543.93 for a $23,600 Tiffany
& Co. diamond ring (the “ring”) purchased by him; and
- Obtaining a Prada bag (the “handbag”) and the ring from the tourist after a GST refund of $1,791.87 had been claimed on the two items.
The court sentenced Bai Jiaming to a total fine of $7,000. If he defaults
on payment of the fine, he will have to serve four weeks’ imprisonment.
Facts of the Case
Investigations
revealed that Bai Jiaming colluded with his colleague, Zhang Baicheng and his
colleague’s father, Zhang Yaoqun (“co-accused persons”) to carry out the GST
refund fraud. Bai Jiaming, the purchaser of the ring did not qualify for a GST
refund under the Electronic Tourist Refund Scheme (“eTRS”) as he was not a
tourist and was in fact, working in Singapore. At Zhang Baicheng’s suggestion, Bai
Jiaming procured Zhang Yaoqun to obtain approval for a GST refund even though
Zhang Yaoqun was not entitled to the said GST refund as he was not the
purchaser of the ring.
On
11 Mar 2017, Bai Jiaming, with a one-way air ticket to Jakarta bought on 10
March 2017, went with Zhang Baicheng and Zhang Yaoqun to the Singapore Changi
International Airport. Zhang Baicheng and Zhang Yaoqun had return air tickets
for Bangkok. All three checked in at their respective ticket counters and
entered the transit area.
Thereafter,
Zhang Yaoqun made the GST refund claim for the handbag and the ring at the
transit area in Changi International Airport, Terminal 3. Zhang Yaoqun had the said
handbag and ring in his possession at the time that the GST refund was
approved.
After
obtaining approval for a GST refund, Zhang Yaoqun gave the handbag and ring to
Zhang Baicheng who in turn gave them to Bai Jiaming. Bai Jiaming knew that
Zhang Yaoqun had obtained approval for a GST refund of $1,791.87 under the eTRS
in respect of both the handbag and ring. Bai Jiaming then attempted to leave
the transit area with the handbag and ring and was stopped by an ICA officer for
suspected misuse of a boarding pass.
Both
Zhang Baicheng and Zhang Yaoqun were charged on 28 Jul 2017 for their offences
and their cases are still pending before the court.
Penalties for Tourist
Refund Fraud
The Inland Revenue Authority of Singapore (IRAS) takes a serious view of
anyone who makes false declarations to seek GST refunds under the tourist
refund scheme and abuses the scheme. IRAS works closely with the enforcement
authorities to uncover any attempt to defraud GST.
Under the GST Regulation, a person commits an offence for receiving
goods from a tourist, directly or indirectly, knowing that the tourist has
obtained approval for the refund. The person also commits an offence for engaging
another person to seek or obtain an approval for a refund under the tourist
refund scheme. Offenders shall be liable on conviction to a fine not exceeding
$5,000 and in default of payment to an imprisonment for a term not exceeding 6
months.
Inland Revenue Authority of Singapore
Annex - Illustration Depicting the GST Tourist Refund Fraud