Director of construction firm charged for tax evasion

Don't bill for work NOT done! Make sure you can prove you have done actual work. And please NEVER EVER UNDER DECLARE your income!

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7 Apr 2008

VISA Engineering Pte Ltd and its director, Ong Kah Sut, were found to have under-reported about $900,000 in income, between the Year of Assessment 2001 and 2005, and evaded $195,048 in tax. For their wilful intent to evade tax, they were charged under Section 96 (1)(d) of the Income Tax Act.

Ong Kah Sut also committed other offences resulting in a total of $1.25 million in tax and penalties.

“Modus Operandi”

Ong Kah Sut, also a sole proprietor of VISA Contract Services (VCS), had prepared fraudulent invoices from VCS. The subcontract and installation works described in the fictitious invoices were in fact never performed for VISA Engineering. VISA Engineering Pte Ltd created the false records in the General Ledger to substantiate the false claim of expenses. Investigations revealed that the payments were in fact paid to Ong Kah Sut.

The Charges

VISA Engineering Pte Ltd, located in Bukit Batok Crescent, pleaded guilty to two charges of falsifying the company’s General Ledger in the year 2001 with a wilful intent to evade tax. Ong Kah Sut also pleaded guilty to two charges of wilfully with intent to evade tax, assisting the construction firm to evade $19,131.12 in tax in the year 2001. The company and its director had therefore committed offences under Section 96 (1)(d) of the Income Tax Act. The penalty is three times the tax evaded.

Under the Income Tax Act, anyone found guilty of assisting another person to evade tax will similarly be liable to a penalty of three times the tax evaded.