Ong Chee Keong ("Ong”), 51, the sole proprietor of Hup Seng Lee Metal  and Glamorzon Hair & Beauty Salon, has been convicted for reporting incorrect net Goods and Services Tax (GST) payable in his GST returns between 2010 and 2015 and making incorrect Income Tax returns for Year of Assessment (YA) 2013. The Court has ordered Ong to pay a total of $991,398 in penalties and fines for these tax offences.

The Inland Revenue Authority of Singapore (IRAS) uncovered the case through its audits, using data and statistical tools to cross-check and detect anomalies in the tax returns declared by taxpayers. IRAS investigations revealed that Ong had omitted certain sales and purchases in his GST F5/ F7 returns for 21 quarters ending between Mar 2010 and Dec 2015, resulting in $272,948 in GST undercharged. Ong had also omitted a total of over $4 million of income in his personal Income Tax returns for YAs 2011 to 2015. The under-declarations had resulted in $769,410 in taxes undercharged.

Court Sentences
The Court ordered Ong to pay a fine of $10,500 and a penalty of $387,720, which is two times the amount of tax undercharged, for the 7 proceeded charges under Section 59(2)(b) of the Goods and Services Tax Act of giving the incorrect information in his GST returns through negligence. The remaining 14 charges were taken into consideration for the purpose of sentencing.  

Ong was also ordered to pay a fine of $3,000 and a penalty of $590,178 which is two times the amount of tax undercharged, for the 1 proceeded charge under Section 95(2)(a) of the Income Tax Act of making incorrect returns in his personal Income Tax returns through negligence. The remaining 4 charges were taken into consideration for the purpose of sentencing.  

Penalties for Non-Compliance
Giving Incorrect Information in GST Registration Form or Return Affecting Liability to Tax
Any business which without reasonable excuse or through negligence, gives any incorrect information in relation to any matter affecting his own liability to tax, or the liability of any other person or of a partnership, will be liable to a penalty that is twice the amount of tax undercharged. A fine and/ or a jail term may also be imposed.

Incorrect Information in Income Tax Returns
Any person who gives incorrect information in their Income Tax returns without reasonable excuse or through negligence will 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:

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 $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