SINGAPORE – A 47-year-old man was fined $3.6 million on Jan 2 for evading Customs duty and the goods and services tax (GST) on 983 motor vehicles he imported into the Republic between November 2018 and October 2020.
Tan Lye Khim, the sole proprietor of Smartcar Auto, was also sentenced to seven weeks’ imprisonment for underpaying the additional registration fees (ARF) on the vehicles by $5,190,893, said Singapore Customs and the Land Transport Authority (LTA) in a joint statement on Jan 2.
The Singaporean failed to pay the fine and will instead serve an additional 43 months in jail.
The authorities said Tan had pleaded guilty to an offence under the Customs Act and another offence under the Road Traffic Act for giving incorrect information related to vehicle tax.
Four Customs-related charges and two charges related to the Road Traffic Act were taken into consideration during sentencing.
Singapore Customs began investigating Smartcar Auto after it suspected that the values of motor vehicles submitted for the assessment of duty and GST payable were intentionally understated.
Its investigations revealed that the firm acted as a front, with Tan allegedly engaged by a 43-year-old Singaporean man and a 48-year-old Singapore permanent resident in 2016 to set it up.
Drawing a monthly salary of $5,000, as well as an annual lump sum payment ranging between $100,000 and $225,000, Tan was aware that Smartcar Auto was set up to import motor vehicles with suppressed values, said the joint statement.
A 31-year-old woman was employed to assist him in placing orders and liaising with overseas suppliers.
The employee – a Singapore permanent resident – also made payments to suppliers, as well as prepared and submitted the values of the motor vehicles Smartcar Auto imported to Singapore Customs for assessment.
Court proceedings against Tan’s employee and the Singaporean man who first approached him to set up the firm are ongoing.
Meanwhile, the 48-year-old man is still under investigation.
Those who are involved in any fraudulent evasion of, or attempt to fraudulently evade, any duty or GST on imported goods may be fined up to 20 times the amount of duty and GST evaded, jailed for up to two years, or both.
For giving incorrect information related to vehicle tax, those convicted can be fined up to $10,000 or be jailed for up to six months. They will also have to pay LTA the amount of the additional registration fee that was undercharged.
Individuals with information on smuggling activities or the evasion of duty or GST can report such offences at go.gov.sg/reportcustomsoffence
