In a move to clamp down on fraudulent Goods and Services Tax (GST) refund schemes, tax investigators from the Inland Revenue Authority of Singapore (IRAS) conducted island-wide raids at over 20 business premises and residential locations on 17 March 2026, as part of investigations into several suspected GST refund fraud cases.  

The operation led to the arrest of one female suspect, aged 56, for one of the cases, and the seizure of accounting records, electronic devices, and other evidence linked to the alleged offences (refer to photos in Annex (PDF, 225KB)). For this case, 179 luxury watches estimated to be worth more than $1 million were also seized in connection to the investigation. The suspect is believed to have created fictitious purchases, inflated transactions and used false tax invoices to support fraudulent GST refund claims. Another 7 individuals from the other cases are assisting IRAS with investigations. 

Preliminary findings indicate that businesses across various industries, including Logistics and Wholesale Trade, were identified in separate GST refund fraud cases, with some involving the alleged use of shell companies to facilitate fraudulent GST refund claims. The operation forms part of IRAS’ enhanced enforcement efforts to take firm action against businesses and individuals who deliberately attempt to defraud the Government through fictitious GST refund claims. 

IRAS’ Audits on GST Refund Claims 

IRAS conducts regular audit programmes using a risk-based approach, supported by data analytics, to detect anomalous GST refund claims and ensure the claims comply with GST rules. A GST refund claim is made when a GST-registered business claims back GST it has paid on its purchases, provided that the GST paid exceeds the GST it has collected from its customers. 

In 2025, more than 1,300 businesses making GST refund claims were audited, uncovering various forms of non-compliance, including incorrect GST filings and unsupported refund claims. These audits resulted in a recovery of over $100 million in taxes and penalties. While most non-compliance is due to poor internal controls or incorrect application of GST rules, IRAS’ audits also uncover fraudulent GST refund claims. 

Severe Consequences for GST Fraud

Deliberate GST fraud is a serious offence, and IRAS will take firm action against those who attempt to abuse the GST system. Upon conviction, offenders may face a penalty of three times the amount of tax undercharged, in addition to a fine not exceeding $10,000 and/or imprisonment for a term not exceeding seven years. Businesses involved in fraudulent schemes may also face additional regulatory and enforcement actions. 

Businesses that identify errors in their submissions are encouraged to make voluntary disclosures to correct these errors, as reduced penalties may apply. IRAS will treat such disclosures as mitigating factors when considering actions to be taken. 

Reporting of Malpractices

Businesses or individuals are encouraged to report any suspected tax malpractices or disclose any past tax mistakes. Please refer to the IRAS website for more information on voluntary disclosure. Those who wish to report malpractices may make their submissions via this form.

Cash Reward for Informants