Manager to pay over $200,000 in fines and penalties for omitting his bonus income

13 Nov 2020

Chong Teck Choy ("Chong"), a 55-year-old senior manager of two  exhibition printing businesses Wah Ye Advertising ("Wah Ye") and Little Box Event and Exhibition Printing ("Little Box"), was ordered by the Court to pay a total of $207,806 in fines and penalties after being convicted for making incorrect Income Tax returns without reasonable excuse. Chong faced a total of four charges of making incorrect tax returns by failing to declare a total of $900,000 in bonus income earned from his employment with Wah Ye in his personal Income Tax returns for Year of Assessment ("YA") between 2014 and 2017, resulting in $133,022 in tax undercharged. 

Court Sentences

Chong pleaded guilty to two proceeded charges for making incorrect returns without reasonable excuse under section 95(2)(a) of the Income Tax Act. The Court ordered him to pay a fine of $6,000 and a penalty of $201,806, which is two times the amount of tax undercharged. The remaining two charges were taken into consideration for the purpose of sentencing. 

Penalties for Non-Compliance - Giving Incorrect Information in Income Tax Returns

Any person who gives incorrect information in their Income Tax Returns without reasonable excuse or negligently will be liable to a penalty that is twice the amount of tax undercharged. A fine and/or a jail term may also be imposed.     

Reporting or Disclosure 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, reveal evaded taxes, or report malpractices that might indicate tax evasion, 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, 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 would ensure that the identities of informants are kept strictly confidential.

   

 Inland Revenue Authority of Singapore