Tax agent to pay more than $80,000 in fines and penalties for assisting client in avoiding GST registration

Case and status

Tax agent Yeo Tiam Chye was convicted on two charges of helping renovation businessman Lim Long Huat underreport turnover below the GST-registration threshold. Yeo received a S$7,000 fine and S$76,177 penalty.

Facts, amounts and outcome

Lim received S$17,000 fines and S$741,344 penalties for incorrect income-tax information and non-registration, plus S$1,136,105 in back taxes. Yeo arbitrarily reduced revenue across Lim’s sole-proprietorship and partnership filings under a standing arrangement. The release stresses professional responsibility and explains the change from quarterly to calendar-year retrospective turnover monitoring from 2019. Engaging an agent does not absolve the taxpayer of responsibility for accurate figures.

GST registration discussed in this release

The release discusses monitoring taxable turnover on a calendar-year basis, with registration required after annual taxable turnover exceeds S$1 million. It also refers to the forward-looking test where applicable. 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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