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Trader faked claims for $42k in tax rebates
Sat, Feb 16, 2008 The Straits Times
A TRADER who faked financial statements to claim almost $42,000 in tax rebates yesterday became the first person in 14 years to be convicted of not keeping proper business records. Png Yeow Leng, 35, pleaded guilty to six charges under the Goods and Services Tax (GST) Act stemming from a scam he ran between July 2004 and March 2005. A magistrate's court heard Png, who ran Dlog Electronics Trading, plucked figures for business purchases out of thin air. The firm, which sold electronic components, office machines and equipment, has ceased operations. Inland Revenue Authority of Singapore (Iras) principal legal officer Ong Ken Loon said Png inflated the value of goods he sold in Singapore and overseas, along with the value of his supplies.

He put off a visit by Iras officers and eventually closed shop in June 2006.

Investigation showed that he destroyed the physical copies of all records, and sold his computer to a karung guni man.

Under the law, Png was supposed to keep his records for at least seven years.

The prosecution yesterday pressed for a jail sentence.

District Judge Shaiffudin Saruwan is scheduled to sentence Pngnext Friday.

Png can be fined up to $10,000 and jailed for up to seven years for each of the tax offences. He also faces an automatic penalty of almost $95,000.

For failing to keep and preserve records, he can be fined up to $5,000 and jailed for up to six months on each charge.