Sole proprietor of funeral business to pay penalty of more than $250,000 for making false entries in GST registration form and income tax return

Case and status

Union Casket proprietor William Quek Soo Chek received S$256,976 fines and penalties and had to pay S$132,382 back taxes. IRAS described this as its first prosecution in the funeral industry.

Facts, amounts and outcome

Quek’s February 2006 GST application incorrectly stated turnover first exceeded S$1 million in December 2005; it had actually crossed the threshold in December 2002. That charge attracted S$246,707 penalties and a S$3,000 fine. An incorrect YA 2011 return deducted private-car expenses, attracting S$6,268 penalties and a S$1,000 fine. The official rounded total is preserved. Registration forms require accurate liability dates, and private-car costs are not deductible simply because claimed through a business.

GST registration discussed in this release

This historical release discusses the S$1 million GST-registration threshold and the retrospective four-quarter turnover test. Taxable turnover is not the same as net profit. Failure to register can still leave GST payable from the liability date even if customers were not charged. The cited consequences include a 10% tax penalty and a possible fine up to S$10,000. Registration dates and procedures should be read in the context of the release year and the official guidance.

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.

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