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