It was reported on IRAS’ website on 29 August 2016 that Ha Wai Kay (“Ha”), the sole-proprietor of Kay Lee Roast Meat Joint (琪利珠江烧腊), was convicted of evading income taxes amounting to $55,000 for Years of Assessment (“YAs”) 2010 and 2011. Kong Kuee Chin (“Kong”), Ha’s wife, was also convicted of assisting Ha in evading taxes.
IRAS’ investigations revealed that for YA2010, Kong had knowingly provided their accountant with Kay Lee’s total sales income as $532,000 while the actual sales figure was almost $694,000. Similarly, for YA2011, Kong had knowingly provided Kay Lee’s total sales income as $665,000 while the actual sales figure was almost $830,000. Therefore, Ha had under-declared his income by $162,000 in YA2010 and $165,000 in YA2011. The income tax undercharged amounted to a total of $55,000 for these two YAs. Kong was also found to intentionally assist Ha in evading taxes.
Ha was found guilty and convicted of wilful intent to evade taxes. The Court sentenced Ha to 4 weeks’ jail and ordered him to pay a penalty of $165,000, 3X the amount of tax evaded. Kong was also found guilty and convicted of assisting Ha to evade taxes. The Court also sentenced Kong to 4 weeks’ jail and ordered her to pay a penalty of $165,000, 3X the amount of tax evaded, for assisting in tax evasion. The total amount of penalty ordered for both Ha and Kong is $330,000.
Two further charges of income tax evasion were taken into consideration for Ha and Kong respectively. Ha and Kong have pleaded guilty and made full payment of the income tax evaded.
What does this mean to you?
IRAS takes a serious view of non-compliance and tax evasion. There will be severe penalties for those who wilfully evade tax. Taxpayers are ultimately responsible for the information declared in their income tax returns. The authority will not hesitate to bring offenders to court. Penalties for tax evasion can be up to four times the amount of tax evaded. In certain situations, jail terms may also be imposed.
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