13 Feb 2026

Ng Kim Kia, Gary, a 36-year-old product sales distributor, has been charged in Court on 13 Feb 2026 for making false entries in his Individual Income Tax returns for Years of Assessment (“YA”) 2016 to 2019, resulting in tax undercharged amounting to $323,631.

This case was uncovered in connection with Chong Jia Ling, Genevieve’s case, also a product sales distributor who had been charged in Oct 2025. 

IRAS’ Audits on Commission Agents 

IRAS runs regular audit programmes across various industries to ensure that individuals, businesses and the self-employed comply with their tax obligations. IRAS leverages data analytics and advanced statistical tools to detect irregularities and potential non-compliances.

Between 2020 and 2025, IRAS audited and investigated some 32 multi-level marketing (“MLM”) agents for anomalies in their tax reporting. By 2025, IRAS completed the review of 16 such cases and recovered $1.66 million in taxes and penalties.

All income earned or derived from Singapore, including income earned from one’s trade, profession, or vocation, is subject to income tax. IRAS reminds all commission agents, including MLM agents, to accurately report their full gross commission as revenue. Any remuneration received from related companies must reflect market value for the service performed and be supported by proper documentation. Agents who incorporate multiple companies or entities without genuine commercial purposes, for the primary purpose of splitting or shifting income should note that such arrangements would be disregarded, with all commission income assessed directly on the agent.

Commission agents must only claim legitimate business expenses that are directly incurred in generating income and supported by proper documentation. Personal expenses, purchases for own consumption, and bulk purchases made solely to qualify for higher sales tiers or status within a sales scheme are not deductible. Claims without justification or supporting documents will be disallowed. 

IRAS Warns Against Tax Evasion 

IRAS takes a serious view of non-compliance and tax evasion. The authority will not hesitate to prosecute offenders in court. For those who wilfully evade tax, offenders may face a penalty of up to four times the amount of tax evaded, a fine of up to $50,000 and/or imprisonment of up to five years.

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 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 Reward 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