It was reported in the IRAS’ website on 6 July 2017 that Robofusion Asia Pte Ltd (“Robofusion”), which is a company in the business of supplying robotic ice-cream kiosks, has been convicted of evading GST by overstating GST input tax on its GST return. Robert Taramelli (“Taramelli”), the company director, was also convicted for his role in assisting the company to evade GST.
IRAS’ investigations revealed that Taramelli assisted Robofusion to evade tax by maintaining a false record, i.e. by including a false invoice dated 10 Sep 2013 that he had created, purportedly from a supplier, showing GST amounting to $35,667.85, into Robofusion’s taxable purchases listing. He included the GST amount of $35,667.85 in the amount of input tax claimed in Robofusion’s GST return for the accounting period 1 Sep 2013 to 30 Sep 2013. The false invoice was for the supposed purchase of 10 units of a machine by Robofusion from the supplier for the total amount of $509,540.72. Investigations revealed that the actual tax invoice, which had the same invoice number, had already been claimed in Robofusion’s GST return for an earlier accounting period ended Jun 2013.
For his offense of willful intent to assist Robofusion to evade tax, Taramelli was sentenced to 6 weeks’ in jail and ordered to pay a penalty of $107,003.55, which is 3X of the GST input tax of $35,667.85.
Robofusion was sentenced to pay a penalty of $107,003.55, which is 3X the amount of GST undercharged, and a fine of $8,000.
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