Committing GST evasion: what are the consequences?
The penalties and sentences for GST evaders in Singapore are serious.
Recently, the sole-proprietor of Sin Metal Industries, Khoo Chin Huat, was sentenced to 54 weeks of imprisonment and was ordered to pay fines and penalties of $1,784,451, after being convicted for Goods and Services Tax (“GST”) evasion and other offences.
GST is a broad-based consumption tax levied on the import of goods and almost all supplies of locally consumed goods and services in Singapore. If your taxable turnover at the end of the calendar quarter and the past 3 quarters is more than $1 million, you would need to register for GST. That means you collect GST on behalf of the government.
People who commit GST evasion are known to intentionally omit information in their tax filings, use false information or under declare their taxes so they can pay less GST. One example is where a GST-registered business under-declares the amount of GST collected so that it can pocket the difference.
While it may seem tempting to reduce your GST liability, the consequences that lie ahead are severe. GST evasion could also happen if you are not careful in the filing of your GST and can be avoided.
Read our new article to learn more about:
- What is GST evasion
- The penalties for GST evasion and how GST evaders are sentenced in Singapore
- Practical steps to take to ensure they do not commit GST evasion
|Learn about Laws and Penalties |
for GST Evasion in Singapore
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