30 Sep 2022

Tay Hai Choon (“Roland Tay”), a 75-year-old undertaker was charged in Court for 3 counts of Personal Income Tax evasion and 1 count of failing to register for Goods and Services Tax (GST) for his businesses.

Investigations revealed that Roland Tay allegedly understated his business income in his Personal Income Tax returns for Years of Assessment 2011, 2012 and 2013, with the wilful intent to evade tax. This purportedly resulted in tax undercharged totalling $427,427.  

Investigations also revealed that Roland Tay allegedly failed to register for GST when the total value of his taxable supplies exceeded $1 million for 4 consecutive quarters. As a result, he had allegedly failed to account for GST totalling $286,963 from the quarter ended 31 December 2010 to the quarter ended 30 September 2013.

IRAS' Audit Programme Uncovered the Offence  

IRAS runs regular audit programmes across various industries to ensure tax compliance by individuals and businesses. Using data analytics and advanced statistical tools, IRAS is able to verify tax reporting and detect anomalies. This case was uncovered through one such audit programme.

IRAS Warns Against Tax Evasion  

IRAS takes a serious view of non-compliance and tax evasion. There will be severe penalties for those who wilfully evade tax. The authority will not hesitate to bring offenders to court. Offenders may face a penalty of up to four times the amount of tax evaded or imprisonment for a term not exceeding 5 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 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