SINGAPORE: The Inland Revenue Authority of Singapore (IRAS) said on Monday (Oct 27) that a 27-year-old woman was charged in court on Oct 24 with tax evasion offences.
IRAS’ media statement says that Chong Jia Ling, Genevieve, a businesswoman, distributed and sold products in 2020 and 2021.
Chong is charged with making false entries in her individual income tax returns for 2021 and 2022. This resulted in a tax undercharged amounting to $371,859. Aside from this, she also allegedly submitted false documents to the Comptroller of Income Tax to support fraudulent expense claims in the same years, $149,453 in 2021 and $45,190 in 2022.
IRAS reminded the public in its statement that it carries out regular audit programmes throughout various industries. This is done to ensure tax compliance among individuals, businesses, and those who are self-employed. The agency is able to cross-check data and detect anomalies through data analytics and advanced statistical tools.
While it is not mentioned whether or not Chong had been involved in multi-level marketing (MLM), the statement notes that the IRAS audited and investigated more than 30 MLM agents for anomalies in their tax reporting between 2020 and 2024.
“IRAS reminds all commission agents, including MLM agents, to accurately report their full gross commission as revenue. Any remuneration received from related companies must be reasonable, reflect market value for the service performed, and supported by proper documentation.
Agents who incorporate multiple companies or entities without genuine commercial purposes, for the primary purpose of splitting or shifting income, should note that such arrangements may be disregarded, with all commission income assessed directly to the agent,” the agency said.
It also noted that only legitimate business expenses directly related to income generation and supported by proper documentation can be claimed by commission agents. Meanwhile, personal expenses, bulk purchases made for rank advancement, and those made for the agent’s own consumption, are not deductible. Moreover, claims made without justification or supporting documents will not be allowed.
Severe consequences for tax offences
“IRAS takes a serious view of non-compliance and tax evasion. The authority will not hesitate to prosecute offenders in court,” the statement reads.
Individuals who are convicted of tax evasion face a penalty of up to four times the amount of tax evaded, a fine of up to $50,000, and/or imprisonment for up to five years.
Those who provide false information verbally or in writing to IRAS to evade tax face a penalty of three times the amount of tax undercharged and are liable to a fine not exceeding $10,000 and/or imprisonment for up to three years.
Further information on tax evasion and other tax mistakes may be found on the IRAS website.
“A reward based on 15 per cent of the tax recovered, capped at $100,000, would be given to informants if the information and/or documents provided lead to a recovery of tax that would have otherwise been lost. All payments are at the discretion of the Comptroller. IRAS will ensure that the identities of informants are kept strictly confidential,” IRAS added. /TISG
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