SINGAPORE - A company director has been fined $5,000 and ordered to pay a penalty of more than $1 million for helping his company, used-car dealer BW Automobiles, understate income tax.
Low Soon Leong, 50, was sentenced in court on Friday (July 17).
He was charged with abetting his company to understate over $6 million in income tax returns between 2011 and 2013.
The company had only declared a total of $1.24 million of income in its tax returns within the same period.
The understatement of income resulted in tax undercharged by over $1 million.
Of the three charges Low initially faced, only one charge- for which tax undercharged amounted to half a million- proceeded to court .
In a statement issued on Friday (July 17), the Inland Revenue Authority of Singapore (Iras) reminded members of the public that it takes a serious view of non-compliance and tax evasion.
The authority added that there will be severe penalties for those who wilfully evade tax. Those who flout the rules may face a penalty of up to four times the amount of tax evaded and jail.
Those who help the authorities bring errant businesses and individuals to task will be rewarded with 15 per cent of the tax recovered, capped at $100,000.
All payments are at the discretion of the Comptroller and Iras will ensure that the identities of informants are kept strictly confidential.