Search

NEWS
FINANCIAL SERVICES | Staff Reporter, Singapore
Published: 09 Nov 11
1726 views


Busted!: IRAS sends Mr Tan Kim Teck to jail after defrauding GST Comptroller

Tan failed to evade punishment even after burning his business records to destroy evidence of fraud.

The Inland Revenue Authority of Singapore said:

Mr Tan Kim Teck thought he could shake IRAS off his trails by burning his business records to destroy evidence of fraud, but IRAS brought him to task for creating false GST claims to defraud the Comptroller of GST. Tan was sentenced to eight months and two weeks’ jail, as well as fined $413,880 in court.

No time-limit on fraud charges

Tan was charged in court with intent to evade tax via TKT Trading to defraud the Comptroller of GST of $219,596.42 in taxes over an eight-year period from 2000 to 2007. He had made fictitious entries in 29 GST returns and failed to keep proper records as required under the law.

IRAS can take to task tax evaders for periods beyond the seven-year statutory time-bar where fraud has been committed.

Tan began his business as the sole-proprietor of TKT in 1996. The principal business of TKT is wholesale of parts and accessories for vehicles. He registered for GST in 1998 and was responsible for submitting the GST declarations for TKT since registration.

Fictitious GST entries and destruction of evidence

GST-registered persons can offset the GST they pay on their purchases against the GST they charge on sales, and pay the net difference to IRAS. If a business incurs more GST on purchases than it collects from sales, it can claim a refund of the shortfall from IRAS. Refunds can arise in exports, because exports are zero-rated (i.e. the business need not collect GST on exports) but the GST is incurred on purchases.

Businesses can only claim input tax if they have indeed exported the goods, incurred the GST on purchases and also satisfied the essential conditions for making claims. Businesses may refer to www.iras.gov.sg for details.

IRAS’s investigations revealed that Tan had declared fictitious input tax claims in his GST returns from September 2000 to September 2007, by adding transhipments goods of TKT (these goods were transferred from importing vessels to the exporting vessels and therefore, did not enter Singapore) into the GST returns under the value of taxable purchases when in fact, no GST was incurred. Investigations further revealed that Tan had burned the physical copies of the records so as to impede IRAS’s investigations when he realised that IRAS requested records to assess the amount of tax undercharged.

Subsequently, Tan admitted that he had obtained fraudulent refunds from the Comptroller of GST due to greed.

Tan, the sole-proprietor of TKT, pleaded guilty to the 11 charges of creating false entries in his GST returns to evade tax, and 3 charges for destruction of supporting documents. 18 charges of creating false entries were taken into consideration for sentencing. He faced a penalty of $413,880, which is 3 times the amount of tax undercharged.



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: Tan Kim Teck sentenced to jail, IRAS case against Tan Kim Teck, Tan Kim Teck defrauds GST Comptroller

LATEST FINANCIAL SERVICES JOBS »
  • No jobs posted on this category.
PRINT ISSUE »

Subscribe Now
Survival of the fittest in Singapore’s franchising scene

24 views

Singapore’s IPO market falters as Hong Kong’s soars

11 views

Singapore’s “mid-life crisis”

56 views

MOST READ EXCLUSIVES

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

It boasts an automated sun-shading system.

by MARIANNE ESTIOCO
7 Jul 2015 | 14976 views
 

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

This small start-up has global dreams.

by MARIANNE ESTIOCO
8 Jul 2015 | 9696 views

Cocoa Colony to open 12 more outlets in Singapore by end-2015

Cocoa Colony to open 12 more outlets in Singapore by end-2015

The cafe chain seeks to target the masses.

by KRISANA GALLEZO-ESTAURA
21 Jul 2015 | 8928 views
 

10 smart ways to spend your GST Vouchers

10 smart ways to spend your GST Vouchers

Regardless of how much you spend, aim to spend it well.

by KRISANA GALLEZO-ESTAURA
8 Jul 2015 | 8603 views

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

Walls and windows function as a big canvas.

by MARIANNE ESTIOCO
15 Jul 2015 | 4739 views
 

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Meeting rooms are named after Asian tourist spots.

by MARIANNE ESTIOCO
5 Jun 2015 | 3829 views

Hootsuite boosts its APAC team opening a new office in Singapore

Hootsuite boosts its APAC team opening a new office in Singapore

Its VP talks about the importance of the company’s culture in line with opening the new space.

by LEE ANNE BABIERRA
18 Jun 2015 | 3341 views
 

Bye bye blurry video calls: Here’s a WebRTC startup that offers close to HD video quality using any device

Bye bye blurry video calls: Here’s a WebRTC startup that offers close to HD video quality using any device

Find out how they are building the next generation of web communications.

by LEE ANNE BABIERRA
2 Jun 2015 | 2710 views

Singapore’s first dedicated F&B development to open in East Coast Road

Singapore’s first dedicated F&B development to open in East Coast Road

Katong Square plans to open at the end of the year.

by STAFF REPORTER
31 Jul 2015 | 2625 views
 

Experience a different form of Thai casual dining at Gin Khao

Experience a different form of Thai casual dining at Gin Khao

The man behind the Jus Delish Group opens its flagship outlet at East Coast Parkway.

by STAFF REPORTER
19 Aug 2015 | 2561 views

CtrlShift’s new office exudes a ‘wow-effect’ without being too grand

CtrlShift’s new office exudes a ‘wow-effect’ without being too grand

Paying attention to small details paid off.

by LEE ANNE BABIERRA
29 Jul 2015 | 2270 views
 

Former college dropout built his own company and made $2million in just 2 years

Former college dropout built his own company and made $2million in just 2 years

He developed a hiring software for jobless women and youth.

by KRISANA GALLEZO-ESTAURA
20 Aug 2015 | 1868 views

Grant Thornton aims to grow staff to 200-300 people in Singapore

Grant Thornton aims to grow staff to 200-300 people in Singapore

Here’s what it will do differently compared to the Big Four.

by KRISANA GALLEZO-ESTAURA
29 Jul 2015 | 1620 views
 

This handy app lets you book nearly any service under the sun

This handy app lets you book nearly any service under the sun

Find technicians, babysitters and more with Page Advisor.

by MARIANNE ESTIOCO
8 Jun 2015 | 1601 views

Could this site be your new financial buddy?

Could this site be your new financial buddy?

It allows users to look for financial services based on their pre-calculated profile.

by LEE ANNE BABIERRA
30 Jul 2015 | 1524 views
 

The wait is over: American Eagle Outfitters opens flagship store in VivoCity

The wait is over: American Eagle Outfitters opens flagship store in VivoCity

Shop until you drop with its wide selection of denim washed jeans.

by STAFF REPORTER
19 Aug 2015 | 1514 views

This app is out to prove that Singapore is anything but boring

This app is out to prove that Singapore is anything but boring

And Sugar helps SMEs in the process too.

by MARIANNE ESTIOCO
2 Jun 2015 | 1486 views
 

PwC Singapore launches its first Investment Fund Centre in Asia

PwC Singapore launches its first Investment Fund Centre in Asia

Expanding its presence in the asset management sector across Asian region.

by LEE ANNE BABIERRA
29 Jun 2015 | 1383 views

Hey, boss: This startup wants to be your all-around sidekick

Hey, boss: This startup wants to be your all-around sidekick

Alpha7 wants SMEs to join the Cloud.

by STAFF REPORTER
16 Jun 2015 | 1362 views
 

How do you like getting cash rebates when shopping online?

How do you like getting cash rebates when shopping online?

ShopBack introduces this concept in Southeast Asia.

by STAFF REPORTER
21 Jul 2015 | 1354 views

Get your head in the game: Testing challenges await the Internet of Things

Get your head in the game: Testing challenges await the Internet of Things

Industry experts share their concerns over security and testing standards.

by LEE ANNE BABIERRA
4 Jun 2015 | 1263 views
 

Out with the old, in with the new: Arcc Offices refurbished its first serviced office in Singapore

Out with the old, in with the new: Arcc Offices refurbished its first serviced office in Singapore

It is designed with break out spaces that are ideal for a collaborative working environment.

by LEE ANNE BABIERRA
17 Aug 2015 | 1257 views

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Book a reliable cleaner in seconds with Helpling.

by MARIANNE ESTIOCO
22 Jun 2015 | 1074 views
 

WeInvest.net simplifies exploration of available investment opportunities

WeInvest.net simplifies exploration of available investment opportunities

It claims to be the world’s first platform allowing investors to take a peek into the restricted funds.

by LEE ANNE BABIERRA
7 Aug 2015 | 1073 views

Almac Group boosts APAC foothold, unveils first clinical packaging facility

Almac Group boosts APAC foothold, unveils first clinical packaging facility

It’s the first to complete the Health Sciences Authority inspection.

by LEE ANNE BABIERRA
5 Aug 2015 | 1042 views
 

Why you should never miss premium freebies from Grabz

Why you should never miss premium freebies from Grabz

This app also helps SMEs get noticed in the market.

by KRISANA GALLEZO-ESTAURA
21 Aug 2015 | 728 views

Asian corporates face tough balancing act as sustainability issues mount

Asian corporates face tough balancing act as sustainability issues mount

Discover the changing face of Asian CSR.

by MARIANNE ESTIOCO
1 Jul 2015 | 663 views
 
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter