Sole-proprietor under-reported $1.28 million trade income - sentenced to 6 months’ jail and $740,978 in penalties

23 Dec 2019

Ng Wee Kheng (“Ng”), a sole proprietor of SME Grant Assist ("SGA") who provides consultancy services for customers to make Productivity and Innovation Credit (PIC) claims, has been found guilty in Court for making false entries in his Income Tax returns by under-reporting $1.28 million in trade income, resulting in a total amount of $246,992 in tax evaded for the Years of Assessment (“YAs”) 2015 to 2016.

Ng pleaded guilty to two proceeded charges of making false entries with the wilful intent to evade tax in his Income Tax returns. The Court sentenced Ng to a jail term of 6 months, and ordered to pay a penalty 3 times the amount of tax evaded totalling $740,978.


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. The authority will not hesitate to bring offenders to court. Offenders may face a penalty of up to four times the amount of tax evaded. Jail terms may also be imposed.

 

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.

 

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: ifd@iras.gov.sg

 

Inland Revenue Authority of Singapore