Two landlords fined for failing to declare rental income

19 Dec 2018

Two individuals, Lim Moy Hai (“Lim”), 70, and Chua Kok Khoon (“Chua”), 48, were convicted of filing incorrect returns of income tax by omitting from their returns rental income amounting to $352,205 and $299,769 for the Years of Assessment (YAs) 2011 to 2013 and YAs 2012 to 2014 respectively.

The court imposed fines on Lim and Chua of $9000 and $7500 respectively and a penalty of two times the amount of taxes undercharged of $112,911 and $105,709 on Lim and Chua respectively. 

 

Failure to Declare Rental Income in Tax Returns

Lim and Chua co-owned 11 commercial and residential properties and rented out these properties to various tenants. In addition to the 11 properties that Lim co-owned with Chua, Lim also owned or co-owned 5 other residential and commercial properties with other individuals.

Investigations revealed that Lim had failed to declare a total rental income of $352,205 for YAs 2011 to 2013 in respect of the 16 properties which were owned or co-owned by him.

Investigations revealed that Chua had failed to declare a total rental income of $299,769 for YAs 2012 to 2014 derived by him from the 11 properties co-owned by him and Lim.  

 

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 ultimately 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. Jail terms may also be imposed.

 

Lower Penalties for Prompt and Full Voluntary Disclosure
IRAS imposes lower penalties for taxpayers who promptly come forward with full disclosure of the mistakes they uncovered from self-reviews. Taxpayers 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: ifd@iras.gov.sg

 

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