Singapore GST – Sole-proprietor Convicted for Declaring an Incorrect GST Return

It was published in IRAS’ website on 10 June 2016 that
Lim Yeo Beng (“Lim”), a sole proprietor of the electronics components business Golden Infra Enterprise, was ordered by the Court to pay a penalty of $49,000, which is 2X the amount of tax undercharged, and fine of $1,500. Lim declared an incorrect return by overstating his input tax claims, leading to a GST refund of $24,800 that he was not entitled to.

IRAS’ investigations revealed that the declaration of Lim’s GST return for the accounting period from 1 January to 31 Mar 2008 was incorrect.  Lim, who was the sole-proprietor, did not ensure the accuracy of his GST declarations by checking the supporting documents that were prepared by his employee.  As a GST-registered sole proprietor, Lim had the responsibility of ensuring accurate GST returns. The input tax claims was overstated for the amount of $28,400, which resulted in a GST refund of $24,800.

What does this mean to you?

It is a serious offence to submit incorrect GST returns by overstating any input tax. Offenders face a penalty that is double the amount of tax undercharged, and a fine not exceeding $5,000 or imprisonment of up to 3 years or both.

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