FOUR beauty treatment salons were hauled to court on Friday for tax evasion by omitting income of about $3 million for three years.
Modern Beauty Salon Co, Modern Beauty Salon (South Bridge), Modern Fitness (T.P.) Co and Modern Elite Salon Co face a total of seven charges of keeping falsified records between 1998 and 2001.
They are linked to the listed company in Hongkong, Modern Beauty Salon Holdings.
Similar charges were filed against the founder , Joyce Tsang Yue, 47, for allegedly assisting the four companies to wilfully evade tax.
The chairperson and chief executive officer of the Hongkong listed company stepped down late last year.
Tsang, who has 11 salons in Singapore including Tampines, Orchard, Raffles Place and Ang Mo Kio, was not in court as her lawyer, Mr Gurbachan Singh, told the court that his client was on medical leave in Hongkong. She is a permanent resident in Singapore.
But Inland Revenue Authority of Singapore prosecutor Patrick Nai asked for a warrant of arrest.
He said the medical certificate was not endorsed by any doctor in Singapore.
Tsang, he added, said, had been served with the summons a year ago, and had sold all her properties in Singapore between October last year and January 2008.
Mr Nai also said the tax and penalties the companies and Tsang would have to pay amounted to $5.3 million.
District Judge Shaiffudin Saruwan adjourned the matter to Jan 13.
He said a warrant would be issued 'without fail' if Tsang failed to turn up at the next mention date.