A couple running an online luxury goods business in Singapore was fined a combined S$849,000 for evading nearly S$68,000 in GST through false invoices and omitted shipping costs.
KEY POINTS
IN SIMPLE TERMS
Two people who sold fancy imported goods online tried to cheat by making fake invoices and hiding shipping costs so they would pay less tax. Customs officers caught them, and now they have to pay very large fines.
WHY IT MATTERS
WHERE DO YOU STAND?
Should fines for GST evasion be set at an even higher multiple of the evaded amount to deter similar schemes?
👍 👎 Vote ↓A Singaporean couple’s attempt to dodge taxes on luxury goods backfired, resulting in hefty fines.
According to Singapore Customs, a couple running an online luxury goods business has been caught trying to cheat the system.
Wang Siew Ching, 34, and Rayson Loo Sian Hao, 33, were found guilty of avoiding GST payments on imported branded goods.
The couple runs a company called Vanity Closet SG Private Limited.
They bought expensive items abroad and sold them through live streaming on Facebook.
| Person | Role | Fine |
|---|---|---|
| Wang Siew Ching (黄小箐), 34 | Director | S$396,000 |
| Rayson Loo Sian Hao (吕先豪), 33 | Manager | S$453,000 |
The couple used a clever but illegal trick to pay less tax.
Loo made fake invoices showing much lower prices for the goods they bought.
They also didn’t include the cost of shipping in their declarations to customs.
This way, they paid less GST than they should have.
Singapore Customs said, “Any person who is in any way concerned in fraudulent evasion of, or attempt to fraudulently evade, any duty or GST shall be guilty of an offence.”
The couple’s scheme was not small.
Between August 2021 and January 2023, they imported 49 shipments of goods.
Out of these, 24 shipments had wrong information.
The total amount of GST they didn’t pay was S$67,810.
The couple faced serious charges for their actions.
The fines they received were much higher than the tax they tried to avoid.
This sends a clear message about the risks of tax evasion.
This case highlights important points for shoppers buying goods from overseas.
GST applies to most items brought into Singapore.
However, there is some relief for smaller purchases.
Singapore Customs states, “GST relief is applicable for goods imported by post or air valued at S$400 or less, excluding certain items like intoxicating liquors and tobacco.”
This relief doesn’t apply to all items, so it’s important to check the rules.
This case serves as a warning to other businesses, especially those in online retail.
Trying to avoid taxes can lead to severe penalties.
The maximum penalty for GST evasion is a fine of up to 20 times the amount evaded and/or up to two years in jail.
Businesses must be honest in their customs declarations.
This includes declaring the correct value of goods and all related costs like shipping.
Singapore Customs found the problem during routine checks.
In January 2022, they looked at shipments Vanity Closet imported in 2021.
They noticed differences between the declared values and the actual prices.
This led to a deeper investigation that uncovered the full extent of the fraud.
Do you think the penalties for GST evasion in Singapore are tough enough to deter others from attempting similar schemes?
Should fines for GST evasion be set at an even higher multiple of the evaded amount to deter similar schemes?
Be the first to weigh in.
