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A 56-year-old woman was arrested on Tuesday (March 17) in a raid that was part of the Inland Revenue Authority of Singapore’s (IRAS) crackdown on Goods and Services Tax (GST) refund fraud.<\/p>\n
The IRAS said in a statement on Thursday that 179 luxury watches worth over $1 million were seized for investigation.<\/p>\n
The woman allegedly created fictitious purchases, inflated transactions and used false tax invoices to support fraudulent GST refund claims.<\/p>\n
Accounting records, electronic devices and other evidence linked to the alleged offences were also seized.<\/p>\n
In all, tax investigators from the IRAS conducted raids at over 20 business and residential premises island-wide on March 17. Another seven people from other cases are assisting with investigations.<\/p>\n
IRAS said that businesses across various industries, including logistics and wholesale trade, were identified in separate GST refund fraud cases.<\/p>\n
Some of them allegedly used shell companies to facilitate fraudulent GST refund claims.<\/p>\n
IRAS added that they conduct regular audits to detect anomalous GST refund claims and ensure claims comply with GST rules.<\/p>\n
In 2025, more than 1,300 businesses making GST refund claims were audited, uncovering various forms of non-compliance, including incorrect GST filings and unsupported refund claims.<\/p>\n
Over $100 million in taxes and penalties were recovered as a result, according to the authority.<\/p>\n
“While most non-compliance is due to poor internal controls or incorrect application of GST rules, IRAS’ audits also uncover fraudulent GST refund claims,” they said.<\/p>\n
Those convicted of deliberate GST fraud may face a penalty of three times the amount of tax undercharged, in addition to a fine of up to $10,000 and\/or a jail term of up to seven years.<\/p>\n
Businesses are encouraged to make voluntary disclosures if they identify errors in their GST refund claim submissions, in order to correct them, as reduced penalties may apply.<\/p>\n
“IRAS will treat such disclosures as mitigating factors when considering actions to be taken,” they added.<\/p>\n
[[nid:674226]]<\/p>\n
chingshijie@asiaone.com<\/p>\n<\/div>\n