1. Quek Ban Tong Edmund, the precedent partner of Economics Café Learning Centre (ECLC), was sentenced to five weeks’ jail and ordered to pay penalties of $72,770.79 for evading $24,256.93 in Income Tax.
2. He under-reported the sales and net profits of ECLC in its Partnership Income Tax return (Form P) for Year of Assessment (YA) 2020 by omitting sales revenue from individual tuition and the sale of economic textbooks. His share of the ECLC partnership profits was also under-reported in his personal Income Tax returns for YA 2020 (Form B).
3. The total amount of trade income omitted by Quek was $150,867.00, resulting in $24,256.93 of Income Tax undercharged.
4. It is important for you to account for all income earned in Singapore and file your tax returns to IRAS by the due date.
5. Whether you are an employee, a self-employed persons, earning rental income, a company, resident or non-resident of Singapore, if your income is earned in or derived from Singapore, it is chargeable to tax unless it is exempted.
6. Under-declaring income and profits is very commonly practiced by many people out there. They used various methods to do this such as omitting sales revenue, inflating expenses using fictitious invoices or overstating wages by including phantom employees.
7. Many people think that they will never be caught if nobody tells. However, this group of people are clearly mistaken. IRAS conducts audits on taxpayers using various means. One such method is unexplained wealth.
8. As you can see, it is not worth your while to go to such extent to hide your wealth. Be open and report what you earned. Come and talk to us if you have any doubts. At PL Biz, we have the right people and expertise to help guide and explain to you on how to go about filing your tax returns.
