A Singaporean sole proprietor was sentenced to jail and fined for more than $500,000 recently after being convicted by the court for failing to declare his business income to IRAS.
The amount of business income omitted was more than $1 million dollars over three years of assessments. Accordingly, this resulted in an undercharged income tax of over $188,000.
In recent years, IRAS has increasingly adopted data analytics as part of its arsenal to combat tax evasion. This is on top of regular audit checks and tip offs from informants.
Therefore, make sure your tax matters are in correct order before the taxman comes after you!