Singapore GST – Accomplice of GST fraud mastermind put in jail


It was reported in IRAS’ website on 2 August 2018 that
Sng Kay Heng who is a sole proprietor of Strikey Trading was found guilty and convicted of making false entries in the GST returns of his business entity, resulting in GST refunds totaling $30,806.61.

Sng was the accomplice of Eric Chan, who was convicted in July 2014 for masterminding a complex GST scam by using multiple shell entities and colluding with Sng to defraud the Comptroller of GST of GST refunds.  Sng had voluntarily registered himself for GST in October 2005.

IRAS’ investigations revealed that Sng, who elected to file his GST returns on a monthly basis, made false entries in his GST returns for the accounting periods ended November 2005, December 2005 and January 2006.

Investigations further revealed that the suppliers whom Strikey Trading had purportedly made purchases from confirmed that they did not make any sales to Strikey Trading.

Sng had claimed trial to 3 GST charges of making false entries with wilful intent to evade tax in his GST returns.  The Court sentenced Sng to 6 weeks’ imprisonment and ordered him to pay a penalty of $92,000, which is 3X of the amount of tax undercharged.

What does this mean to you?

Under Singapore GST law, it is a serious offense to claim GST input tax on fictitious purchases or understate output tax on sales. Offenders face a penalty of up to 3 times the amount of tax undercharged, a fine not exceeding $10,000, and/or imprisonment of up to 7 years.

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