Benedict Lim (“Lim”), a 31-year-old director of Baseplate Holdings Pte Ltd (“BHPL”) and the company was allegedly in the business of selling and distributing computer related products. Lim has been convicted for being a director of BHPL when BHPL had, without reasonable excuse, incorrectly declared in its Goods and Services Tax (GST) returns in 2017 that there was in total $63,700 of net GST to be claimed from IRAS, when in fact there was no GST refunds due to BHPL.
Lim faced two charges under Section 59(2)(b) read with section 74(1) of the GST Act. Lim pleaded guilty to one charge proceeded on him and was ordered by the Court to pay a fine of $1,000 (in-default 1 day's imprisonment) and a penalty of $63,700 (in-default 42 days’ imprisonment), which is two times the amount of GST that would have been so undercharged if the GST return had been accepted as correct. The other charge was taken into consideration for the purpose of sentencing.
Giving Incorrect Information in GST Registration
Form or Return
Any business that gives incorrect information in its GST registration form or return without reasonable excuse may 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 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:
Revenue Authority of Singapore
Investigation & Forensics Division
55 Newton Road, Revenue House
Email: [email protected]
Cash Rewards for Informants
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 will ensure that the identities of informants are kept strictly confidential.
Inland Revenue Authority of Singapore