Singapore Company Pays Heavy Penalty for Tax Evasion

by CFO Innovation Asia Staff, 06 August 2012

0 comments

Facebook

Digg

Twitter

topics:
Accounting and Regulations Tax

tags:
tax tax evasion

Thumbnail:

Positive Engineering Pte Ltd., a company that specialises in fabricating and installing aluminium panels and fire-rated doors as well as non-building construction services, was convicted of tax evasion for Years of Assessment (YA) 2008 and 2009.

PEPL was ordered to pay a fine of S$12,000 (US$9,665.51) and a penalty of $250,990.92 (US$202,162.85 ), three times the total amount of tax evaded.

In the course of its business, PEPL sold scrap materials to a scrap dealer from 2007 to 2008. Investigations revealed that over these two years, PEPL had neither kept records nor issued sales invoices to the scrap dealer for these transactions.

Some of the sales proceeds were not deposited into PEPL’s bank account but either kept by Madam Ng Chan Kheng, one of the company directors, or deposited into her personal bank account held jointly with another director.

Subsequently, PEPL failed to report the income earned from the sale of the scrap materials in its audited accounts and Income Tax Returns for YA 2008 to 2009. This resulted in under-reporting of income totalling $464,798 (US$374,381.69) for PEPL and correspondingly, tax undercharged of $83,663.64 (US$67,388.70) for both YAs.

MORE ARTICLES ON TAX EVASION

Orignal Author:

CFO Innovation Asia Staff

Quote Image:

Comment on this article

Your name: *

E-mail: *

The content of this field is kept private and will not be shown publicly.

Homepage:

Comment: *

Web page addresses and e-mail addresses turn into links automatically.
Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <a> <p> <span> <div> <h1> <h2> <h3> <h4> <h5> <h6> <img> <img /> <map> <area> <hr> <br> <br /> <ul> <ol> <li> <dl> <dt> <dd> <table> <tr> <td> <em> <b> <u> <i> <strong> <font> <del> <ins> <sub> <sup> <quote> <blockquote> <pre> <address> <code> <cite> <embed> <object> <strike> <caption>
Lines and paragraphs break automatically.
Use  to create page breaks.

More information about formatting options

Verification Code

This question is for testing whether you are a human visitor and to prevent automated spam submissions.

What is the third word in the phrase "vuqazeh yulow atup ekegexu yajumut"?: *

Accounting and Regulations

CFO innovation Asia Accounting and Regulation the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Accounting Regulation, IFRS, US GAAP, Tax, investor relations, corporate governance, Corporate Law, Financial Regulators, Internal Audit, Audit, Corporate Law.

Auditing, Investor Relations, Law and Compliance, Tax

Finance and Banking

CFO innovation Asia, Finance and Banking the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Corporate Finance, trade finance, treasury and risk management, capital expenditure, Banking, mergers and acquisitions

Cash and Liquidity Management, Corporate Finance, Insurance, Treasury Management

Management

CFO innovation Asia the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Finance Management, Corporate Governance, Human Resource Management, Compensation and Benefits, Mergers and Acquisitions, Professional Development, Corporate Real Estate, Risk Management, Budgeting and Forecasting, Business Process Management, Business Process Reengineering, Outsourcing.

Budgeting and Planning, Business Expense Management, Human Capital Management, Outsourcing and Shared Services, Risk Management

Metrics

Corporates, Financial Services

Technology

CFO innovation Asia Technology the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Finance Systems, Business Intelligence, EPR, Accounting software, CRM, Cloud Computing, Telecommunications, Business Process Outsourcing, Business Process Management Software.

Business Intelligence, Enterprise Software and Systems, Financial Systems, Security