Aug 27, 2010
Jail, penalty for tax evasion
<!-- by line --> By Elena Chong
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AN AUTOMATIVE spare parts trader was jailed for one month and two weeks and ordered to pay a penalty totalling $183,089 on Friday for evading Goods and Services Tax (GST) and income tax. Danny Lee Chin Beng, 43, was convicted of two counts of omitting $152,516 earned from his income tax return for the year of assessment 2007, and another $142,141 the following year.
He also admitted to two charges of understating output tax in his GST returns in 2005 and 2006. Lee, owner of Sourcing and Procurement Asia-Pacific, had 13 other charges considered during his sentencing. In all, he faced 13 charges of failing to account for GST of $111,455 collected from customers between April 2003 and September 2006.
He was also charged with under-reporting income of $900,782 from S&P and evaded $150,266 in income tax from 2004 to 2007. The penalties imposed on the income tax and GST offences is three times the amount of tax undercharged. In a statement, Inland Revenue Authority reminded all business to keep proper records and accounts of all their transactions.
The court imposes severe penalties for tax evasion and tax fraud offences. 'Businesses and individuals should disclose any past tax evasion immediately. IRAS will treat such disclosure as a mitigating factor when considering the penal charges,'' said the IRAs.
