It was reported in the IRAS’ website on 19 Sep 2014 that Wong Weng Hong, , manager of LJK Famco – a GST-registered sole-proprietorship set up under the name of Chan Shen Cheong and in the business of general wholesale trade – was sentenced to 6 weeks’ jail. Wong was also ordered by the Court to pay a penalty of $105,000 which is three times the amount of fraudulent GST refund claims made.
How this case was uncovered was that during one of IRAS’ regular audits, IRAS’ auditors came across suspicious quarterly GST returns submitted under Chan’s name. Further investigation revealed that Wong had used Chan’s name to set up LJK Famco in 2008.
Wong had obtained Chan’s SingPass to e-file the GST returns of Chan. Wong later admitted he was the person who had e-filed Chan’s GST returns with random figures, without having considered the genuine amount of purchases made by LJK. Information gathered from LJK’s suppliers also did not substantiate the input tax claims in LJK’s quarterly GST returns for accounting periods ended in Jan, Apr and Jul 2009.
Wong had wilfully with intent to fraudulently obtain GST refunds, declared fictitious figures in multiple GST returns to obtain GST refunds that he was not entitled to.
IRAS takes a serious view of tax criminals and will not hesitate to take stern action against those guilty of defrauding the State. It is a serious offence to claim input tax on fictitious purchases or to understate output tax on sales. Offenders face a penalty of three times the amount of tax undercharged, a fine of up to $10,000, and/or jail term of up to 7 years.
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