2 men charged for evading taxes on more than S$700,000 of rental income

2 men charged for evading taxes on more than S$700,000 of rental income

IRAS building
Inland Revenue Authority of Singapore building. (Photo: Gaya Chandramohan)

SINGAPORE: Two men were charged on Friday (Mar 16) in separate cases of evading taxes on rental income. The total rental income omitted from their tax returns amounted to more than S$700,000. 

It resulted in more than S$120,000 in undercharged tax, according to Inland Revenue Authority of Singapore (IRAS) in a media release.

The first man, 67-year-old Lim Moy Hai, was charged with four counts involving omitted rental income from 2010 to 2013. The rental income omitted amounted to more than S$411,000, and he was undercharged about S$69,000 in tax.

The second man, 47-year-old Chua Kok Khoon, was charged with three counts for omitted rental income from 2012 to 2014. The omitted amount was more than S$299,000, which resulted in him being undercharged nearly S$53,000 in tax.

Chua also faces another charge for not filing his income tax returns.

In addition, a third person - who was not named by IRAS - will face five charges on Apr 13 for submitting falsified invoices that amounted to more than S$284,000 to support claims made for rental expenses between 2009 and 2013. 

This resulted in the person being undercharged about $56,500 in taxes, said IRAS.

In the past three years, the authority has recovered S$7.37 million in taxes and penalties following its audits on 1,500 taxpayers who were selected for audit on their rental income. 

"IRAS detects the omission or under-reporting of rental income through various means, such as reviewing tenancy and property ownership records," it said. "In addition, IRAS has developed capabilities, in areas such as data analytics, to detect non-compliance and evasion. Advanced statistical techniques are used to identify high-risk cases."

The authority added that the vast majority of taxpayers in Singapore pay their taxes, but there was a "small group of non-compliant individuals who impose an unfair tax burden on the majority".

Penalties for tax evasion can be up to four times the amount of tax evaded and a fine of up to S$50,000 and/or imprisonment of up to five years.

Source: CNA/nc