A Guide to Tax Evasion in Singapore

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A guide to Tax Evasion in Singapore
Bestar Services Pte. Ltd
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A guide to Tax Evasion in Singapore
Tax Planning While Being In Singapore

• Many businesses avoid paying Taxes to keep more
  income with them or due to time-constraint. Tax
  Evasion is the most common illegal way of
  avoiding meeting tax obligations practiced
  worldwide. Singapore takes tax compliance very
  seriously, and they follow a strict stringent
  policy for individuals businesses to pay lawful
  taxes on time.
• Singapore aims to keep the country free from
  corruption and to ensure citizens businesses
  are paying taxes on time, Singapore follows a
  rigid set of penalties to be imposed on people
  businesses who avoid paying taxes.

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A guide to Tax Evasion in Singapore
Tax Planning While Being In Singapore
What is the difference between Tax Evasion Tax
Avoidance?

• Both Tax Evasion Tax Avoidance are used for
  similar purposes with the intention of paying
  lesser taxes. However, both concepts are
  different as tax avoidance methods are legal, and
  Tax Evasion methods are illegal.
• Tax Evasion involves using illegal methods to
  avoid paying taxes intentionally. Tax Evasion
  happens in the form of deliberately
  misrepresenting facts on the Tax return.
• Tax Avoidance involves using legal methods in the
  form of claims, deductions, exemptions, bills,
  and expenses that are entitled within the Income
  Tax Act of the country you reside or work in.

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A guide to Tax Evasion in Singapore
Tax Planning While Being In Singapore
What is Tax Evasion in Singapore?

• Singapore has one of the strict stringent
  criminal acts of tax evasion. Singapore takes
  severe actions for using unlawful methods to
  avoid tax obligations required by Singapore
  Income Tax Act.
• Some of the Tax Evasion unlawful methods include
  the following

• Misrepresentation of information for tax
  reporting
• Transferring profits amongst family members
  friends without appropriate reason
• Claiming false expenses bills in an excessive
  amount

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A guide to Tax Evasion in Singapore
Tax Planning While Being In Singapore
What is Tax Evasion in Singapore?

• The Inland Revenue Authority of Singapore (IRAS)
  must have the appropriate correct evidence to
  justify prove the intentions of the actions are
  part of the Act of Tax Evasion and has been used
  to avoid tax obligations.
• Suppose the Inland Revenue Authority of Singapore
  (IRAS) discovers that the business, company, or
  individual has not paid the taxes intentionally
  but due to negligence. In that case, it is
  considered negligence, not Tax Evasion.

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A guide to Tax Evasion in Singapore
Tax Planning While Being In Singapore
Penalties for not paying Tax in Singapore

• Singapore follows a zero-tolerance policy in the
  event of Tax Evasion and imposes an extreme
  penalty. Those who are found culprit under the
  Tax Evasion Act may be subject to the following
  penalties

• If charged under GST Evasion, then the penalty of
  3 times the amount of tax undercharged and a fine
  of up to 10,000 or up to 7 years of imprisonment
• If charged under Tax Evasion, then the penalty of
  3 times the amount of tax undercharged and a fine
  of up to 10,000 or up to 3 years of imprisonment

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A guide to Tax Evasion in Singapore
Tax Planning While Being In Singapore

• If charged under Fraudulent Tax Evasion
  (Misrepresenting or falsifying documents), then
  the penalty of 4 times the amount of tax
  undercharged and a fine of up to 50,000 or up to
  5 years of imprisonment
• If charged under providing false information on
  tax liability (improper tax return), then the
  penalty of 2 times the amount of tax undercharged
  and a fine of up to 5,000 or up to 3 years of
  imprisonment
• Companies may be subjected to a fine of up to
  10,000. Guilty (Culprits) individuals or parties
  may be subjected to up to seven years of
  imprisonment.

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A guide to Tax Evasion in Singapore
Tax Planning While Being In Singapore
How can Individuals Prevent Tax Evasion?

• Individual Taxpayers in Singapore must submit
  correct documents information regarding Income
  Tax returns account books on time to avoid
  penalties from Singapore Income Tax Act.
• We recommend you hire a service provider in
  Singapore for Tax Accounting services who will
  ensure that you have submitted correct accurate
  information documents on time for your Income
  Tax Return.
• At Bestar Services, we provide the best
  accounting services in Singapore the best tax
  compliance services in Singapore. We have a team
  of highly qualified experts who have assisted
  thousands of clients in accounting services
  meeting 100 tax compliance by ensuring that all
  the information in accounting books is correctly
  presented and essential documents are valid
  accurate.

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A guide to Tax Evasion in Singapore
Tax Planning While Being In Singapore
How can businesses companies Prevent Tax
Evasion?

• Businesses Companies must ensure that the
  accounting team keeps valid correct information
  documents ready to submit for Income Tax
  returns on time. The accounting team must be
  educated about the consequences of
  misrepresenting information or fact in the books
  of accounts which can lead to the Act of Tax
  Evasion.
• Businesses must ensure a risk assessment of
  third-party business collaborations
  corporations that will help safeguard their
  businesses from Tax Evasion.

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A guide to Tax Evasion in Singapore
Tax Planning While Being In Singapore

• Hiring an accounting services firm in Singapore
  is the ideal option. Bestar Services is one of
  the top 10 accounting services providers in
  Singapore top 10 tax compliance services
  providers in Singapore. We help all types of
  businesses companies with accounting services.
  Our team ensures that all the accounting books,
  information documents are valid, legal, and
  accurate to avoid Tax Evasion by adhering to 100
  tax compliance with the Singapore Income Tax Act.

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A guide to Tax Evasion in Singapore
Tax Planning While Being In Singapore
Looking to get assistance with accounting
services tax compliance?

• Bestar Services is one of the best accounting
  services providers in Singapore. Contact us today
  to get assistance from the highly qualified
  accounting services experts tax compliance
  experts in Singapore. You can reach out to us via
  call at 65 62994730 or email at
  admin_at_bestar.asia.

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