Case and status
Classic Furniture Design and Renovation Works proprietor Lim Hong Hee was convicted of incorrect returns for YAs 2006–2009 and 2011. He reported salary paid to himself rather than full trade income, omitting S$1,772,704 and causing S$293,977 of tax undercharged.
Facts, amounts and outcome
Two of five charges proceeded, involving S$210,673 undercharged. Lim received a S$10,000 fine and S$421,347 penalty; three charges were considered. Business receipts funded household costs, property and share investments, including S$845,000 in shares during 2009–2011. A sole proprietor’s self-labelled salary does not replace the taxable profits of the business.
Disclosure, reporting and rewards
IRAS encourages taxpayers to correct past errors and report suspected tax malpractices. The release says disclosure may be considered when deciding enforcement action; it is not a blanket promise of immunity. Where the release describes informant rewards, qualifying information leading to otherwise lost tax recovery may attract 15% of recovered tax, capped at S$100,000, at IRAS’ discretion. Informant identities are kept confidential. Use the official release links for its reporting and disclosure channels.
Official source
This report is independently written from the IRAS release dated above. Case status, policy announcements and historical figures refer to that release.
Read the complete IRAS release ↗