A 38-year-old Malaysian woman will be charged in court on 9 July 2025 for her suspected involvement in tax and money laundering offences.

The Inland Revenue Authority of Singapore (IRAS) commenced investigations into the woman in September 2024 for her suspected involvement in setting up multiple goods and services tax (GST) registered entities for the purpose of claiming fraudulent GST refunds from IRAS. IRAS investigations revealed that the GST registered entities had no substantial business activities and could not support their input tax claims. Between August 2017 and October 2024, more than $1.4 million of fraudulent GST input tax claims were suspected to have been filed by the woman and the entities set up by her.

As there were indications of money laundering offences committed, IRAS worked closely with the Commercial Affairs Department (CAD) to promptly commence money laundering investigations on the woman. Based on CAD’s investigations, the woman had allegedly transferred $213,000 between December 2019 and May 2024, which represented her suspected benefits of criminal conduct, for the purpose of removing the money from jurisdiction.

The woman will be charged in court with the following offences:

Tax offences

• 87 counts of making false entries in GST returns under Section 62(1)(b) of the Goods and Services Tax Act (Cap 117A, 2005 Rev Ed) / Goods and Services Tax Act 1993 (“GSTA”);
• Four counts of hindering IRAS officers in carrying out their duties under Section 66 of the GSTA.
  

Money laundering offences

• Three counts of transferring property representing her benefits of criminal conduct under Section 47(1)(b) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Cap 65A, 2000 Rev Ed);
• Three counts of transferring property representing her benefits of criminal conduct under Section 54(1)(b) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992.
  

Penalties for fraudulent GST Claims

It is a serious offence to wilfully evade tax by submitting false GST returns that understate any output tax, overstate any input tax, exclude taxable supplies or include fictitious transactions. Upon conviction, offenders may face a penalty of three times the amount of tax undercharged, a fine not exceeding SGD 10,000 or an imprisonment term not exceeding 7 years or both.

Penalties for Money Laundering

Under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, 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.

Singapore takes a serious view on fraudulent GST refund claims and related money laundering activities and will not hesitate to take stern enforcement action against any individuals who commit these offences in accordance with the law.

Reporting of Malpractices

Businesses or individuals are encouraged to immediately report their own malpractices. IRAS will treat such reports as mitigating factors when considering the action to be taken. Those who wish to report malpractices can write to:

Inland Revenue Authority of Singapore

Investigation & Forensics Division

55 Newton Road, Revenue House

Singapore 307987

Email: [email protected]

Cash Rewards for Informants

A reward based on 15% of the tax recovered, capped at SGD 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.

SINGAPORE POLICE FORCE

INLAND REVENUE AUTHORITY OF SINGAPORE