Ang Ngoh Tee (“William”), 71, and Ang Chai Heng (“Winston”), 63, directors and shareholders of William’s Auto Pte Ltd (“the company”), have been convicted of offences relating to Income Tax and Goods and Services Tax (“GST”) evasion, and money laundering. The company is in the automotive industry and deals in the sale and purchase of new and used cars. 

William and Winston were each sentenced to around five to six months’ imprisonment. Each was also ordered to pay a penalty of $812,795. 

Case Highlights

Investigations revealed that despite being GST-registered, the company issued cash sales invoices for various services without charging GST. Between 2013 and 2019, cash payments received from these sales were deposited into a separate, non-corporate bank account (“designated bank account”) to evade taxes payable by the company. The funds in this account were then distributed among the directors broadly in proportion to their shareholdings in the company. Over the years, William received at least $2 million and Winston received at least $1 million from this account. 

With wilful intent to evade tax, the company understated its net profits in its Income Tax returns for Years of Assessment (YAs) 2015 and 2016, resulting in $219,978 of tax being undercharged. Between 2013 and 2017, the company’s output tax – the GST that businesses charge and collect – was also understated in its GST returns, resulting in $50,953 in GST being undercharged.

In February 2018, Winston received a cash cheque of $20,000 issued from the designated bank account, which was deposited into his personal bank account in June 2018. He subsequently issued three cheques totalling $143,845 from his personal bank account as partial payment for a car. Winston admitted that these cheques issued from his personal bank account were partially funded by his share of the undeclared cash sales of the company.

In May 2018, William similarly received a cash cheque of $20,000 issued from the designated bank account, which he deposited into his personal bank account on the same day. A few days later, William issued a cheque of $84,322 from his personal bank account as partial payment for a car. William admitted that the cheque issued from his personal bank account was partially funded by his share of the undeclared cash sales of the company.

Both Winston and William admitted that the payments made towards their respective cars were partially funded by their shares of the company's undeclared cash sales. By using these proceeds to purchase their cars, both men had in their possession assets that were partly funded by their benefits from wilful income tax evasion, thereby constituting money laundering.

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.

Penalties for Money Laundering

Under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992, it is an offence for any person to conceal, disguise, convert, transfer, remove from jurisdiction, acquire, possess, or use benefits derived from criminal conduct. Upon conviction, offenders are liable to be punished with a fine not exceeding $500,000, or an imprisonment term not exceeding 10 years, or both.

Reporting of Tax Malpractices

Businesses or individuals are encouraged to immediately disclose any past tax mistakes. IRAS will treat such disclosures as mitigating factors when considering actions to be taken. Please refer to the IRAS website for more information on how to disclose past mistakes. Those who wish to report malpractices may make their submissions via this form.

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
Singapore Police Force