Singaporeans fined over S$2.6 million for evading duty and GST on imported vehicles
Two Singaporean men have been fined a total of more than S$2.6 million for under-declaring the value of imported motor vehicles, resulting in the evasion of duty and Goods and Services Tax (GST).
In a joint statement on Monday (20 April), the Land Transport Authority (LTA) and Singapore Customs said the scheme involved falsified documents that made the vehicles appear less valuable than they actually were.
Both men pleaded guilty and were sentenced to fines, with jail terms imposed after they failed to pay.
Scheme involved using company front to avoid detection
Investigations revealed that in 2020, 51-year-old Phang Boon Wee Desmond sought to take control of Metalox Autos to import vehicles at “suppressed values”.
Source: Dar ius on Canva, for illustration purposes only
To reduce his exposure to legal liability, he arranged for 45-year-old Loke Chern Meng to be listed as the company’s director and sole shareholder.
In return, Loke was paid S$200 for each vehicle imported and allowed Phang to run the company’s operations, including access to its corporate accounts.
Phang sourced buyers and worked with overseas suppliers to obtain invoices reflecting lower prices.
