Understanding the Singapore Green Plan 2030

The Singapore Green Plan 2030 is a comprehensive national strategy aimed at advancing the country’s sustainable development agenda. Launched in February 2021, the plan is structured around five key pillars:

• City in Nature: Expanding green spaces and promoting urban biodiversity by planting 1 million trees and increasing nature parkland area by over 50%. Every household will be within a 10-minute walk from a park by 2030.
• Sustainable Living: Reducing waste, promoting cleaner energy vehicles, and creating eco-friendly towns. Targets include a 30% reduction in waste sent to landfills and requiring all new car and taxi registrations to be cleaner-energy models from 2030.
• Energy Reset: Transitioning to cleaner energy sources by quadrupling solar energy deployment by 2025 and ensuring 80% of new buildings meet Super Low Energy standards from 2030.
• Green Economy: Developing new green jobs, transforming industries, and positioning Singapore as a leader in sustainability, including turning Jurong Island into a sustainable energy and chemicals hub.
• Resilient Future: Enhancing Singapore’s climate resilience and food security through research, innovation, and sustainable solutions.

These pillars aim to address critical environmental challenges, positioning Singapore as a leader in sustainability while ensuring long-term economic growth.

How SMEs Can Contribute to the Green Plan

As small and medium-sized enterprises (SMEs) form the backbone of Singapore’s economy, their participation is crucial in achieving the plan’s goals. By integrating sustainability into their business operations, SMEs can contribute to this green vision while ensuring long-term resilience and competitiveness.

1. Adopt Sustainable Practices

SMEs can take meaningful steps toward sustainability by implementing the following measures:

• Energy Efficiency: Switch to LED lighting, use energy-efficient appliances, and optimize HVAC systems to reduce energy consumption. Implement smart energy management systems to monitor and reduce electricity use.
• Waste Reduction: Set targets to minimize waste sent to landfills, aiming for a 20% reduction by 2026. Implement recycling programs, reduce single-use plastics, and explore sustainable packaging solutions.
• Green Transportation: Transition to electric vehicles for company transport, supporting Singapore’s goal of having all new car registrations be cleaner-energy models by 2030. Encourage employees to use public transport or carpooling to further reduce carbon footprints.

2. Leverage Government Support

The Singapore government has implemented several initiatives to support SMEs in their sustainability journey:

Enterprise Sustainability Programme (ESP)

The ESP, launched by Enterprise Singapore (ESG), aims to help local companies, especially SMEs, develop capabilities and capture opportunities in the green economy. Key features include:

• A budget of up to S$180 million to support various sustainability initiatives.
• Assistance for at least 6,000 enterprises over four years.
• Support for training workshops, capability, and product development projects, and key enablers such as certification and financing.
• A series of sustainability courses in partnership with organizations like Global Compact Network Singapore, PwC Singapore, and Singapore Environment Council.
• These courses help business leaders build awareness, assess sustainability readiness, and develop clear sustainability plans.

Energy Efficiency Fund (E2F)

The E2F is designed to help manufacturing companies improve their energy efficiency:

• It supports companies with an annual group sales turnover of less than S$500 million.
• The fund covers up to 70% of qualifying costs for energy-efficient equipment and technologies.
• Eligible equipment includes LED lighting, air-conditioners, motors, chilled water systems, refrigeration systems, compressed air systems, boiler systems, furnaces, ovens, and heat recovery systems.
• Grant amounts may exceed S$30,000, with support levels varying based on carbon abatement achieved.

Enterprise Financing Scheme – Green (EFS-Green)

EFS-Green is a government financing scheme to help local companies develop capabilities and capture growth opportunities in the green economy. Key features include:

• Open for applications until March 31, 2026.
• Offers various loan types, including developmental capital, fixed assets, trade loans, project loans, venture debt, and mergers & acquisition loans.
• Maximum loan quantum ranges from S$3 million to S$50 million, depending on the loan type.
• Repayment periods vary from 1 to 20 years, based on the loan type.
• Eligibility criteria include having at least 30% local equity and an annual group sales turnover not exceeding S$500 million.

These initiatives demonstrate the Singapore government’s commitment to supporting SMEs in their transition towards sustainability, providing financial assistance, training, and resources to help businesses adapt to the growing green economy.

3. Invest in Green Innovation

SMEs can contribute to Singapore’s green economy by:

• Developing Sustainable Products: Creating innovative, eco-friendly products or services that address environmental challenges, such as biodegradable packaging or energy-efficient appliances.
• Adopting Green Technologies: Investing in clean technologies, such as solar panels, water-saving systems, and AI-driven efficiency solutions, to reduce carbon emissions and improve resource efficiency.
• Pursuing Green Certifications: Obtaining sustainability certifications, such as the Singapore Green Labelling Scheme (SGLS) or B Corp certification, to enhance credibility and access new markets.

4. Engage in the Circular Economy

SMEs can integrate circular economy principles into their business models by:

• Resource Optimization: Designing products for longevity, reusability, and recyclability. Implementing eco-friendly materials and sustainable manufacturing processes.
• Waste as Resource: Exploring ways to turn waste into valuable resources, such as repurposing manufacturing by-products or partnering with recycling companies to close the production loop.

5. Collaborate and Build Partnerships

SMEs can amplify their sustainability impact by:

• Supply Chain Sustainability: Working with suppliers and partners to green the entire value chain, such as sourcing from eco-friendly vendors and adopting sustainable procurement policies.
• Knowledge Sharing: Participating in industry forums, sustainability networks, and government initiatives to exchange best practices and learn from other businesses.
• Community Engagement: Involving employees and local communities in sustainability initiatives, such as corporate social responsibility (CSR) programs, clean-up drives, and sustainability education campaigns.
• Leverage OCBC SME Start-ESG Programme: Participate in programs like the OCBC SME Start-ESG Programme, in partnership with Enterprise Singapore, to establish a baseline measurement of sustainability metrics, receive expert guidance on sustainable practices, and gain access to sustainability-linked loans. This will enable SMEs to enhance their competitiveness, improve their sustainability performance, and access financing for green initiatives.

6. Measure and Report Progress

To ensure accountability, SMEs should:

• Set Targets: Establish clear, measurable sustainability goals aligned with the Green Plan’s objectives. Define key performance indicators (KPIs) for energy use, waste reduction, and carbon footprint.
• Monitor Performance: Regularly assess and report on sustainability metrics such as carbon emissions, resource consumption, and overall environmental impact. Leverage digital tools to track progress and identify areas for improvement.
• Communicate Sustainability Efforts: Share sustainability achievements with stakeholders, customers, and employees through annual reports, social media, and marketing campaigns to build brand trust and transparency.

Conclusion

By integrating sustainability into their operations, SMEs can play a significant role in realizing the Singapore Green Plan 2030. These efforts not only contribute to national sustainability goals but also help businesses stay competitive in the evolving green economy. With government support and a proactive approach, SMEs can drive meaningful environmental change while securing long-term business success.

At Timcole, we are committed to helping SMEs navigate their sustainability journey. Whether you need guidance on grants, regulatory compliance, or financial planning for green investments, our expert team is here to support you. Contact Timcole today to learn how we can help your business embrace sustainability and thrive in Singapore’s green economy.

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Enforcement Actions for Non-Compliance

Companies that do not file their CIT Returns on time may incur fines of up to $5,000. Depending on the company’s compliance history, IRAS may opt for a compounded offense rather than prosecution. Companies receiving a letter of composition must pay the specified amount and file the overdue tax return; failure to do so may result in a Notice to Attend Court. Companies that neglect to file for two or more years could face court-ordered penalties amounting to double the assessed tax, in addition to the fine.

Accountability of Company Directors

In cases of non-filing, IRAS may issue notices to company directors to request financial information. Directors who fail to provide this information by the deadline may face penalties of up to $10,000 or court attendance. Non-compliance may lead to the issuance of a warrant of arrest for the director. In 2023, 1,690 court summonses were issued to directors who did not comply with such notices.

For further details regarding the penalties for late or non-filing of CIT Returns, please visit the IRAS webpage.

Preparation for Filing by November 30, 2024

Approximately 262,000 companies are expected to file CIT Returns this year. IRAS reminds all companies, including those with no business activities or reporting losses, to file their Year of Assessment (YA) 2024 CIT Returns by the deadline of November 30, 2024.

To avoid a last-minute rush, companies are encouraged to prepare their financial statements, tax computations, and supporting documents in advance. Timely preparation and filing not only help avoid unnecessary fines but also allow for thorough review, minimizing errors.

IRAS Support for Tax Filing

IRAS is committed to simplifying the annual tax filing process:

• The Basic Corporate Income Tax Calculator provides guidance through tax computations and checks for common errors.
• Companies using software, like Xero Accounting Software, with seamless filing capabilities can save up to 95% of filing time, ensuring improved compliance as their tax computations and returns are generated and filed automatically. They may also receive an automatic extension of the CIT filing due date by 15 days to December 15, 2024.
• Eligible companies with annual revenue of $200,000 or less can file Form C-S (Lite), which requires only six essential fields—two-thirds fewer than Form C-S.

For assistance with the YA 2024 tax filing, companies can visit the IRAS website or explore a range of e-learning videos. They can also chat with IRAS officers via live chat, call the helpline at 1800 356 8622, or contact IRAS through myTax Mail for additional support. Companies that identify errors in past CIT Returns should proactively disclose them to IRAS to avoid substantial penalties.

Source: IRAS

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Vijay’s Sentencing:

Failure to Notify the Comptroller of Ensoft’s Liability to Register for GST:

• A fine of $2,000 (or 5 days imprisonment in default)
• A penalty of $13,961 (or 10 days imprisonment in default)

Unauthorized Collection of GST:

• 7 weeks’ imprisonment
• A penalty of $83,300 (or 60 days imprisonment in default)

Case Highlights

Ensoft operates in employment, recruitment, and manpower outsourcing for the IT industry. By 31 December 2017, Ensoft’s taxable supplies exceeded $1 million, requiring GST registration notification to IRAS by 30 January 2018. Vijay, aware of GST requirements due to his directorship of another GST-registered company, did not comply. Despite Ensoft not being GST-registered, Vijay authorized his employees to collect GST from clients.

Penalties for Non-Compliance

Unauthorized Charging and Collection of GST:

Charging and collecting GST without being GST-registered is a serious offense. Offenders will pay a penalty of three times the amount collected or attempted to be collected and may face a fine of up to $10,000, imprisonment for up to 3 years, or both.

How to Check if a Business is GST-Registered:

The public can verify a business’s GST registration status on the IRAS website using the business name or registration number.

GST Registration:

Businesses must monitor their income yearly to determine if GST registration is necessary. If their 12-month taxable turnover exceeds $1 million, they must apply for GST registration by 30 January of the following year and will be registered by 1 March. If a business expects its taxable turnover to exceed $1 million within the next 12 months, it must register for GST within 30 days of this forecast, effective from the 31st day of the forecast date.

Failing to register for GST results in liability for GST on all past transactions from the date of required registration, even if not collected from customers. Additionally, failing to register is an offense, with penalties including 10% of the GST due and a fine of up to $10,000.

IRAS conducts audits to ensure compliance with GST laws, including proper charging and collection of GST by businesses.

Source: IRAS

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InvoiceNow Network and Services

Launched in 2019, InvoiceNow utilizes the international Peppol standard to facilitate the structured digital exchange of invoices between suppliers and buyers. This improves productivity in invoice processing, speeds up payment cycles, and reduces paper usage. Currently, over 60,000 businesses are part of the InvoiceNow network, using a variety of services ranging from free e-invoicing portals to comprehensive accounting solutions and customized systems.

Implementing the InvoiceNow Requirement for GST-Registered Businesses

GST-registered businesses will be required to use InvoiceNow solutions to transmit invoice data directly to IRAS, starting with a voluntary early adoption phase in May 2025. Data transmission will be facilitated through Access Point (AP) providers using Application Programming Interface (API) technology.

The GST InvoiceNow Requirement will be rolled out as follows:

• From 1 May 2025: Voluntary early adoption by GST-registered businesses.
• From 1 November 2025: Mandatory for newly incorporated companies that voluntarily register for GST.
• From 1 April 2026: Mandatory for all new voluntary GST registrants.

Adopting InvoiceNow will aid businesses in fulfilling their GST responsibilities by streamlining record-keeping, billing, and payment processes. It particularly benefits new GST-registered businesses by establishing proper practices from the start.

By using InvoiceNow, businesses can streamline compliance, reduce data preparation efforts for IRAS submissions, and receive faster GST refunds. Additionally, features within InvoiceNow solutions can alert businesses to incorrect GST charges from non-GST registered suppliers.

This phased implementation follows a pilot program conducted from September 2020 to June 2023, involving businesses like Sheng Siong Group Ltd and Evergreen Group Pte Ltd. IRAS will continue consulting industry partners and reviewing feedback before detailing requirements for all GST-registered businesses. For further information, businesses can refer to the IRAS webpage or seek support from IRAS or IMDA.

Free InvoiceNow Services for Newly Incorporated Businesses

To support newly incorporated businesses in their digitalization efforts, IMDA has collaborated with service providers to offer one year of free InvoiceNow services under the InvoiceNow Accelerate program. Starting in April 2024, eligible businesses can choose their preferred service provider after claiming their CorpPass.

IMDA is continuously enhancing the InvoiceNow network with additional services. These include new business document types like electronic Purchase Orders and Invoice Responses, further digitalizing the procure-to-pay process. To facilitate seamless cross-border transactions, IMDA has introduced Peppol International (PINT) specifications, allowing businesses to send e-invoices without adapting them to the recipient’s domestic standards, benefiting those engaged in international trade.

Source: IRAS

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As an insurance introducer, Chew was responsible for introducing potential customers to insurance agents for insurance investment policies. Investigations revealed that Chew had assisted three insurance agents – Yvonne Quah, Lim Zhan Yi, and Sherlin Chia Hee Ping – to prepare and file their Personal Income Tax returns. Chew was assisted by another individual, You Yiying (“Kyra”).

Chew, without reasonable excuse, gave incorrect information in the personal tax returns of these three insurance agents to claim false expenses under the guise of “general expenses” and “commission paid to introducers”. The total amount of false expenses amounted to $542,091, which resulted in $93,408 in taxes undercharged.

Investigations revealed that Chew prepared and filed the three agents’ Income Tax returns using the false expense figures which the agents had provided to him, through Kyra, with the intention of reducing their chargeable income and evading tax. To substantiate the agents’ false expense claims, Chew created sham “introducer acknowledgement forms”, which claimed that various individuals had received substantial amounts of “introducer fees” from the agents. Chew proactively recruited individuals who were willing to sign the sham “introducer acknowledgement forms” and provide their NRICs in exchange for token sums of between $50 and $200.

Kyra was sentenced in June 2022 for her role in the scheme, and the three insurance agents involved were convicted of falsifying expense claims in their Income Tax returns in September 2022.

IRAS Warns Against Tax Evasion

IRAS takes a serious view of non-compliance and tax evasion. There will be severe penalties for those who wilfully evade tax. The authority will not hesitate to bring offenders to court. Offenders may face a penalty of up to four times the amount of tax evaded. Jail terms may also be imposed.

Source: IRAS

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The Court imposed the following sentences on Lee for the offences committed between 2014 and 2017:

• For 31 counts of making false entries in the GST returns of three companies – Everasia T&W, Hup Heng and Sante – resulting in $2.97 million of taxes undercharged, Lee was sentenced to between 16 and 20 months’ imprisonment for each offence and a total penalty of $8.91 million which is three times the amount of tax undercharged in these 31 charges;
• For one count of abetting Nourriture in making incorrect GST returns without reasonable excuse resulting in $58,456 of taxes undercharged, Lee was ordered to pay a fine of $5,000 and a penalty of $116,912 which is twice the amount of tax undercharged;
• For one count of submitting a false PIC claim to obtain a payout of $60,000, Lee was sentenced to 8 weeks’ imprisonment and a penalty of $240,000 which is four times the amount of PIC cash payout fraudulently claimed;
• For four counts of money laundering activities involving using illegally obtained GST refunds and PIC cash payouts for various business purposes, including legal expenses and supplier payments totalling $1,652,030, Lee was sentenced to between 10 months’ imprisonment and 27 months’ imprisonment for each offence;
• For three counts of money laundering activities involving transferring illegally obtained GST refunds to multiple persons and entities for various business purposes, including employees’ salary and rental payments totalling $2,091,482, Lee was sentenced to between 9 months’ imprisonment and 43 months’ imprisonment for each offence; and
• For one count of directly taking part in the management of Hup Heng, whilst an undischarged bankrupt and without the leave of the Court or the written permission of the Official Assignee, Lee was sentenced to 3 months’ imprisonment.

Related matters

Lee, who was adjudged a bankrupt in April 2016 and could no longer be registered as a director of his companies without the leave of the Court or the written permission of the Official Assignee, had requested 42-year-old Andy Siew Hui Hock (“Siew”) to be a director of the companies in name. After being appointed as director, Siew was entirely uninvolved in the business and operations of the companies and did not take any steps to find out about their ongoing business activities.

Siew was convicted on 27 January 2022 of two counts of an offence punishable under Section 157(3)(b) of the Companies Act for failing to exercise reasonable diligence in the discharge of his duties as a director of Hup Heng and Sante. Another three counts of the same offence were taken into consideration for the purpose of sentencing. Siew was sentenced to a fine of $5,000 (in default 10 days’ imprisonment) for each offence and disqualified from acting as a director or taking part, whether directly or indirectly, in the management of a company for a period of three years.

Penalties for Non-Compliance

Fraudulent GST Claims

It is a serious offence to wilfully evade tax by submitting false GST returns, such as by understating any output tax, overstating any input tax, excluding taxable supplies or including fictitious transactions. Upon conviction, offenders are liable to pay a penalty of three times the amount of tax undercharged and are liable to be punished with a fine not exceeding $10,000, and/or to imprisonment of up to seven years.

With the enhanced sentencing framework for GST evasion, offenders will face a stiffer imprisonment sentence which takes into account the harm caused by the offender and his or her culpability, such as the quantum of tax evaded, the degree of planning and premeditation and sustained period of offending. The imprisonment term imposed for GST evasion under Section 62 of the GST Act may span the full range of up to seven years.

Money Laundering

It is an offence under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act for any person to acquire, possess, use, conceal or transfer benefits derived from criminal conduct. Upon conviction, offenders are liable to be punished with a fine not exceeding $500,000, or an imprisonment term not exceeding 10 years, or both.

Singapore takes a serious view on fraudulent GST refund claims and related money laundering activities and will not hesitate to take stern enforcement actions against any individuals who commit these offences and persons who facilitate them.

Managing a Company whilst an Undischarged Bankrupt

It is an offence under Section 148(1) of the Companies Act for any person, being an undischarged bankrupt (whether he was adjudged bankrupt by a Singapore Court or a foreign court having jurisdiction in bankruptcy), to directly or indirectly take part in or be concerned in the management of a company without the leave of the Court or the written permission of the Official Assignee. Upon conviction, offenders are liable to be punished with a fine not exceeding $10,000, or an imprisonment term not exceeding two years, or both.

Failing to Exercise Reasonable Diligence in the Discharge of their Duties as a Director

Any person who commits a breach of Section 157(1) of the Companies Act shall be guilty of an offence punishable under Section 157(3)(b) of the same Act and shall be liable on conviction to a fine not exceeding SGD 5,000 or to imprisonment for a term not exceeding 12 months.

The Police takes a serious view of the offence and will not relent in taking offenders to task. Individuals should not be a director of a company when they have limited or no oversight or control, as the company may be used for illegal purposes, such as the laundering of criminal proceeds. Company directors who fail to exercise reasonable diligence in the discharge of their duties run the risk of allowing their companies to facilitate the retention of benefits derived from criminal conduct.

Source: IRAS

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Increased Penalties for Late Filers

Non-Compliant Employers to Be Prosecuted

In the Tax Season last year, 9 in 10 qualifying employers on AIS had filed by the deadline of 1 March in 2022. Employers who failed to do so were subjected to penalties and/or prosecution. The penalties have been enhanced this year, with a maximum fine of $5,000, up from $1,000 previously. Key personnel of non-compliant businesses such as company directors or partners may also be subject to a fine of up to $10,000, and/or imprisonment for a term of up to 12 months.

Up to $5,000 Penalty for Individuals Who Do Not File Tax Returns by 18 April 2023

Most taxpayers file their taxes by 18 April — 19 in 20 taxpayers did so in 2022. Those who do not file on time are liable to a fine of up to $5,000.

Taxpayers are encouraged to file online from 1 March 2023 and avoid last-minute filing. IRAS will be sending taxpayers filing notifications (via SMS or letters) in late February/early March 2023. Those who do not receive these notifications may check their filing requirements via the filing checker on the IRAS website. Alternatively, they can log into myTax Portal to see if tax returns have been issued to them.

Update Your Contact Details to Be Notified When Your Tax Bill Is Ready

Most taxpayers will receive digital tax bills via myTax Portal this year. Taxpayers should ensure that their contact details and notification preferences in myTax Portal are up to date so that they can receive timely notifications when their tax bills are ready for viewing.

Source: IRAS

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• Automatic 15-day extension of filing due date; and
• Waiver of penalties for errors made in the return due to unfamiliarity with its use.

This is part of IRAS’ digitalisation blueprint to provide hassle-free tax filing experience for companies and tax agents by integrating tax into the systems that businesses use in their daily operations. Businesses will be able to enjoy up to 95% time-savings and improved compliance as their tax computations and returns will be automatically generated and filed from their software.

Two New Benefits for Companies & Tax Agents Adopting Seamless CIT Filing

IRAS has been actively engaging and partnering companies and tax agents to promote adoption of seamless filing from software. Most agreed that it would improve productivity. While some businesses are keen to try the software, they are concerned about needing time to be familiar with its use, and the possibility of making errors in their submission in doing so.

IRAS has considered the feedback and will be providing two new benefits between YA 2023 to YA 2025 to support companies and tax agents who are transiting and familiarising themselves with filing Form C-S seamlessly from software:

1. Automatic extension of filing due date by 15 days (i.e., from 30 Nov to 15 Dec) for YA 2023 to YA 2025 Form C-S filed seamlessly from software. Companies and tax agents do not need to separately request for the extension.
2. Waiver of penalties for errors made due to unfamiliarity with the use of the software for YA 2023 to YA 2025 Form C-S filed seamlessly from software by the filing due date. The waiver does not apply to errors made without reasonable excuse, through negligence, or with wilful intent to evade tax.

Other similar benefits will also be available for the adoption of seamless filing for Goods & Services Tax (GST) returns, Auto-Inclusion Scheme (AIS) submissions, and Tax Clearance for Foreign & Singapore Permanent Resident Employees (IR21) due from 1 Jan 2023 to 31 Dec 2025. For more information, please refer to the IRAS website and Annex A – Summary of Benefits for Adoption of Seamless Filing from Software.

Companies and tax agents that adopt software with seamless filing capability can prepare and file Form C-S within 15 minutes, achieving time savings of more than 95%. In addition, they can reduce potential transposition errors by eliminating the need for manual data entry in myTax Portal, and improve the accuracy of Form C-S with software features such as pre-filling of tax data. See Annex B – Illustrative Examples on Seamless Filing from Software for illustrative examples of how seamless filing from software can ease tax filing for companies and tax agents.

Companies and tax agents that are keen to adopt seamless filing from software can refer to IRAS’ Accounting Software Register Plus (ASR+) for the list of software that enables them to fulfil their tax filing obligations seamlessly. Businesses are encouraged to consider using Tier 3 software (see Annex C – Tier 3 Software in the Accounting Software Register Plus (ASR+) Listing for the list) in the ASR+ Listing that will enable seamless filing for both CIT and GST returns. Tax agents can also connect their in-house system with IRAS’ system to enable the seamless filing of Form C-S via Application Programming Interfaces (APIs).

Source: IRAS

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For their offences, they were sentenced by the Court to the following:

Source: IRAS

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For three counts of GST evasion under Section 62(1)(b) of the Goods and Services Tax Act, Chapter 117A (“GSTA”) read with Section 107(c) of the Penal Code, Chapter 224 (“PC”) and punishable under Section 62(1) of the GSTA read with Section 109 of the PC for evasion of Goods and Services Tax (“GST”), involving $210,287 of tax undercharged, Soon was sentenced to 34 weeks’ imprisonment, and ordered to pay a penalty of $630,861, which is three times the GST amount he evaded. Five other GST evasion charges were taken into consideration for this sentencing.

For three counts of money-laundering under Section 47(1)(a) of the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (Chapter 65A, 2000 Revised Edition) (“CDSA”), punishable under Section 47(6)(a) of the CDSA, involving the disguise of property amounting to $3,214,389, Soon was sentenced to six months imprisonment. Five other money-laundering charges were taken into consideration for this sentencing.

Investigations revealed that Soon had aided the Clubs to make false entries in their GST returns, with wilful intent to evade GST, by instructing the Clubs’ accountants (the “Accountants”) to omit reporting sales revenue of the Clubs (mainly from the sale of flower-garlands) and the output tax thereon in 2016.

Investigations also revealed that Soon had instructed his staff to divert the sales revenue of the Clubs (which were GST-registered) to two other entities (“Shell Entities”) using separate point-of-sale (“POS”) terminals linked to the Shell Entities. These Shell Entities were not GST-registered and had no actual business activities. The undeclared revenue from the sales of the flower garlands was recorded as proceeds from fictitious sales of souvenirs in the accounts of the Shell Entities. By doing so, Soon had thereby disguised monies which, in part, directly represented the benefits of his criminal conduct from GST evasion.

Please refer to Annex A (PDF, 118KB) for the summary of the modus operandi and Annex B (PDF, 198KB) for photos of the flower garlands.

Penalties for Non-Compliance

Penalties for Evading GST

It is a serious offence to wilfully submit false GST returns by overstating any input tax, understating any output tax or including fictitious transactions. Upon conviction, offenders may face a penalty of three times the amount of tax undercharged, a fine not exceeding $10,000, and/or imprisonment of up to seven years.

Penalties for Money Laundering

Under Section 47(6) of the CDSA, any person who acquires, possesses, uses, conceals or transfers benefits from criminal conduct shall be liable on conviction, if the person is an individual, to a fine not exceeding $500,000 or to imprisonment for a term not exceeding 10 years or to both.

Source: IRAS

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