SINGAPORE \u2013 A 56-year-old woman was arrested and 179 luxury watches worth more than $1 million were seized in islandwide raids conducted by the Inland Revenue Authority of Singapore (IRAS) on March 17.<\/p>\n
The woman allegedly created fictitious purchases, inflated transactions and used false tax invoices to support fraudulent goods and services tax (GST) refund claims. <\/p>\n
Seven other people from other cases are assisting with investigations, said IRAS in a statement on March 19. <\/p>\n
Accounting records, electronic devices and other evidence linked to the alleged offences were seized by IRAS.<\/p>\n
The raids were conducted by IRAS\u2019 tax investigators at more than 20 business premises and residential locations as part of investigations into several suspected GST refund fraud cases. <\/p>\n
Preliminary findings show that businesses across various industries, including logistics and wholesale trade, were identified in separate GST refund fraud cases, said IRAS. Some also involved the alleged use of shell companies to facilitate fraudulent GST refund claims. <\/p>\n
The operation forms part of IRAS\u2019 enhanced enforcement efforts to take firm action against businesses and individuals who deliberately attempt to defraud the Government through fictitious GST refund claims, said IRAS. <\/p>\n
More than 1,300 businesses making GST refund claims were audited in 2025 and IRAS uncovered \u201cvarious forms of non-compliance\u201d, including incorrect GST filings and unsupported refund claims. <\/p>\n
These audits resulted in the recovery of more than $100 million in taxes and penalties. While most non-compliance is due to poor internal controls or incorrect application of GST rules, IRAS\u2019 audits also uncover fraudulent GST refund claims. <\/p>\n
IRAS said it will take firm action against those who attempt to abuse the GST system. Those convicted may face a penalty of three times the amount of tax undercharged, in addition to a fine not exceeding $10,000 and\/or imprisonment for a term not exceeding seven years. <\/p>\n
Businesses involved in fraudulent schemes may also face additional regulatory and enforcement actions. <\/p>\n
Those that identify errors in their submissions are encouraged to make voluntary disclosures to correct these errors, as reduced penalties may apply. \u201cIRAS will treat such disclosures as mitigating factors when considering actions to be taken,\u201d the statement said. <\/p>\n
Businesses or individuals are also encouraged to report any suspected tax malpractices or disclose any past tax mistakes. <\/p>\n
A reward based on 15 per cent of the tax recovered, capped at $100,000, may be given to informants if the information and\/or documents provided lead to a recovery of tax that would otherwise have been lost. IRAS will keep the informants\u2019 identities confidential. <\/p>\n Among the items seized in the raids were 179 luxury watches worth more than $1 million and electronic devices.<\/p>\n PHOTOS: INLAND REVENUE AUTHORITY OF SINGAPORE<\/p>\n<\/figcaption><\/figure>\n<\/div>\n<\/picture><\/div>