Madeleine Foo Tiew Heng, the finance manager of Singapore's Alphalog, a supply chain management services firm, and Vida Enterprise, a telecommunications business, will serve two months in jail for tax evasion, reports the Straits Times.
As a new company in 2004, Vida enjoyed tax benefits, which meant it would not be taxed for the first $100,000 in profits for the first three years, notes the Times. Foo realised that tax paid by the two companies she was working for would decrease if some of Alphalog's profits were recorded as Vida's profits.
Alphalog's managing director Juan Hui also pleaded guilty to two charges of tax evasion. Both Foo and Aplhalog have to pay a penalty of $211,100 each, which is three times the amount of tax evaded.