Director of two real estate agencies gets 4 weeks’ jail for under-declaring more than $730,000 in income

29 Jun 2020

Gan Giap Huat (“Gan”), a 63-year-old director of two real estate agencies, WGR Global Property Consultants Pte Ltd (previously known as “William Gan Realty Pte Ltd”) and Kairos International Property Consultant Pte Ltd, was convicted in Court today for wilful intent to evade tax by making false entries in his Income Tax returns for Years of Assessment (“YAs”) 2011 and 2012.

Gan’s main source of income was the commission income received for brokering the sale and purchase transactions of real estate properties. He also earned rental income from his three properties at East Coast Road during the period of offence.

Gan had under-reported $737,112 in income, resulting in a total amount of $147,422 in tax evaded.
 

Court Sentences

For the two proceeded charges on income tax evasion, Gan was sentenced to 4 weeks’ imprisonment and ordered to pay a penalty of $442,266, which is three times the amount of income taxes evaded (in-default 7 months’ imprisonment term if he is unable to pay the amount).

Penalties for Non-Compliance

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.

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