知法犯法 - Certified pubic accountant pays big fine for under declaring income

[Rogue Trader]

Certified public accountant fined for under reporting income

Posted: 13 April 2012 1235 hrs​

SINGAPORE: A certified public accountant has to pay a total of about S$55,760 in penalties and fines for under-reporting his income.

66-year-old Freddie Chin Kek Khiong was in the business of book-keeping, auditing and tax services.

In his income tax returns for Years of Assessment 2006 and 2007, he had without reasonable excuse under-reported income to the tune of S$100,600 and S$54,972 respectively.

For the two charges of under-reporting his income, Chin has to pay a penalty of S$51,760, which is two times the tax undercharged of S$25,880.

Chin is also ordered to pay a fine of S$4,000 on the two charges.

The Inland Revenue Authority of Singapore (IRAS) assesses businesses that pose compliance risks using its computerised analysis programmes and selects such businesses for audit.

Chin's under-reporting was discovered through one of IRAS' regular audit programmes that target a cross-section of industries and professional groups.

IRAS takes a serious view of such offences by tax or accounting professionals.

Tax or accounting professionals are expected to understand the importance of proper record keeping, preparing financial statements and filing accurate and timely income tax returns to IRAS.

IRAS said it would not hesitate to take action against those who do not comply with such requirements without a reasonable excuse.

- CNA/wm

 

[Raiders]

He is not the only one I think. Just the tip of the iceberg. If want to catch, I think will queue from Jurong to Pasir Ris.

 

[Rogue Trader]

He is not the only one I think. Just the tip of the iceberg. If want to catch, I think will queue from Jurong to Pasir Ris.

Income under declaration is one of the oldest tricks and it is one of the hardest to catch. All SMEs and family businesses will keep some "special reserve" in their books. IRAS usually close one eye because the cost of catching these guys will be bigger than the tax amount recoverable.

IRAS must have been bio-ing this accountant for a long time liao. Maybe he has been advising his own clients to post "special reserves" for a while.... and made IRAS toolan.

 

[Raiders]

Income under declaration is one of the oldest tricks and it is one of the hardest to catch. .

Reminds me of tip top curry pok boss. I hope kay lee's lao kway bu also get investigate soon.

 

[yinyang]

Income under declaration is one of the oldest tricks and it is one of the hardest to catch.

Maybe old trick, but not that hard to catch: An idiot proof, simple comparison with previous year's return with BIG drop in chargeable income is cause for anybody's concern (never mind taxman).

Also, think taxman got 6 years (statute of limitations) to close in on you:p

 

[LeMans2011]

The biggest culprits in tax evasion are the doctors.
I know of some clinics who collect ONLY CASH because that is the only way of under-declaring income and making it harder to catch.

IRAS will publicise a few examples every year around the tax filing times to warn people.

For an accountant like Freddie to be caught it is a big shame. They are supposed to be knowledgeable in hiding the traces.

 

[Rogue Trader]

An idiot proof, simple comparison with previous year's return with BIG drop in chargeable income is cause for anybody's concern (never mind taxman).

Trend analysis won't work if the fella understates taxable income from year one... And that's also assuming his business doesn't grow at all over the years.

 

[Rogue Trader]

For an accountant like Freddie to be caught it is a big shame. They are supposed to be knowledgeable in hiding the traces.

Bo pian... for his kind of business, he must also keep detailed records of his services. If IRAS check him, all there in black and white.

I think the really undetectable businesses are the hawkers!

 

[yinyang]

Trend analysis won't work if the fella understates taxable income from year one...s.

But of course, if he hid his money in pillow from day 1. My earlier post specifically referred to his YA 2006/7 with -50% drop income. And check the call up within 6 years bar time.