Nightclub partner jailed, ordered to pay $340k penalty for hiding flower garland sales from Iras

SINGAPORE - A business partner of Century 21st Night Club in Rochor was sentenced to jail for three weeks, fined $8,500 and told to pay a penalty of almost $340,000 on Friday (July 16).

Goh Kim Teck, 58, pleaded guilty to one charge of tax evasion and six charges of omitting goods and services tax (GST) collected.

Another nine similar charges were taken into consideration.

Goh supervised the club's daily operations and bookkeeping.

A substantial source of income came from flower garlands which were bought by customers and presented to performers at the club as a show of appreciation.

Payment was by cash or credit card.

However, from 2011 to 2014, Goh instructed his staff not to use the cash register for garlands bought with cash .

When it was time for the bookkeepers to file GST for the club, Goh would again hide the actual sales from them.

He also reported his own income tax returns for 2013 as a loss of more than $50,000, when it should have been a profit of more than $120,000.

On Friday, he was ordered to pay the penalties by Aug 27.

If he fails to do so, he will be jailed for another four weeks and 138 days.

He was granted a deferment of the sentence, and is expected to begin serving his jail term from Aug 27.

Goh is currently out on $80,000 bail.

In a release, the Inland Revenue Authority of Singapore (Iras) said it takes a serious view of non-compliance and tax evasion.

"There will be severe penalties for those who wilfully evade tax," it added, noting that it will not hesitate to take offenders to court.

Those who wish to report tax malpractices can e-mail details to ifd@iras.gov.sg

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