41 weeks' jail and $1.2 million penalty for person who assisted two pubs to evade taxes
8 Apr 2020
Ann
Phua Si Si (“Phua”), aged 53, has been convicted of assisting the following pub
establishments, Moonshine Roadhouse Pte Ltd (“Moonshine”) and Peyton Place Café
Lounge Pte Ltd (“Peyton”), to evade Income Tax and Goods and Services Tax (GST),
totalling $1.09 million, between 2009 and 2013. The Court sentenced Phua to a total of 41 weeks’ imprisonment and ordered to pay
a total penalty of $1,227,948, which is three times the taxes evaded.
Although Phua was not
listed as a shareholder or director of either Moonshine and Peyton,
investigations revealed that she was actually the decision-maker for the
businesses carried on by both companies. Phua orchestrated an arrangement to
omit cash sales, which were either made without the issuance of receipts or
made through drink promoters, from the Income Tax and GST returns of Moonshine
and Peyton.
Court Sentences
For the two proceeded charges
on income tax evasion, the Court sentenced Phua to 1 weeks’ imprisonment and ordered her to pay a penalty of $65,942, which is three times the amount of Income Taxes
evaded in the proceeded charges.
For the eight proceeded
charges on GST evasion, Phua was sentenced to 40 weeks’ imprisonment and ordered to pay a penalty of $1,162,006, three times the amount of GST evaded in the
proceeded charges.
IRAS’ Investigative Techniques and Analysis
To stay ahead of tax
fraud schemes in a changing tax crime environment, IRAS has enhanced its investigative
capabilities and techniques in dealing with tax criminals and combating tax
crimes. Through the use of forensics, IRAS is able to recover and analyse information
from various data sources to determine the extent of the crimes.
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.
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
Cash Rewards for Informants
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