Man jailed for instigating son to evade luxury watch firm’s taxes

Tax prosecutors Ian Yang and Nicholas Toh said the son was the sole proprietor of K.B. Luxury Watch and Jewellery in Jurong.

It was not mentioned in court documents what role the father had in his son’s business.

For the years of assessment of 2018 to 2020, Pang Chuan Wah instigated his son to make false entries in the younger man’s individual income tax returns.

He had provided his son with understated income figures of the business, which were submitted in the tax forms.

Because of this, the income tax undercharged during that period amounted to $351,787.20.

Separately, in April 2018, Pang Chuan Wah also instructed his son to state in his individual income tax return that the sales from his business were $919,998, when they were in fact $10,475,437.

The prosecutors said the father knew the business had exceeded $1 million in sales and that his son, its sole proprietor, was liable to be registered for GST.

His actions would have resulted in GST of $108,619 to be undercharged had the offence been left undetected, added the prosecutors.

It was not stated in court documents how the offences came to light.

Those who evade taxes can face a penalty of up to three times the amount of taxes evaded, and can be jailed and fined.