- Vanity Closet couple in Singapore was convicted for fraudulent GST evasion on imported branded goods.
- Wang Siew Ching and Rayson Loo Sian Hao were fined S$396,000 and S$453,000 respectively.
- The couple evaded S$67,810 in GST through false declarations and omitted $4,172 in freight charges.
A Singaporean couple’s attempt to dodge taxes on luxury goods backfired, resulting in hefty fines.
Couple Caught in GST Evasion Scheme
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 |
How They Tried to Cheat
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 Scale of the Fraud
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.
Consequences of Their Actions
The couple faced serious charges for their actions.
- 11 charges of fraudulent evasion of GST
- 25 charges of causing incorrect declarations
- Additional charges considered during sentencing
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.
What Shoppers Should Know
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.
Lessons for Businesses
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.
How Singapore Customs Caught the Fraud
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?
