The sole-proprietor of Staffing Network, Tan Siew Hoon Pauline, was yesterday sentenced to pay a total of S$362,022 for evading tax by understating her income.

According to a statement by the Inland Revenue Authority of Singapore (IRAS), the 44 year-old pleaded guilty on 30 July 2018 to five charges of understating her income without reasonable excuse for Years of Assessment (YAs) 2009 to 2013.

The court yesterday (17 September 2018) sentenced her to pay a total of S$362,022. This includes a penalty of S$344,522 (two times the tax undercharged of S$172,261) and a fine of S$17, 500. One other charge of failing to notify the Comptroller of Goods and Services Tax of her liability to be registered for GST was taken into consideration for sentencing.

Case facts

Investigations by IRAS revealed Tan had only declared S$444,633 in her income tax returns for YA 2009 to 2013 when the net income earned was S$1,748,058. In addition, Tan did not notify the Comptroller of GST when the taxable turnover of Staffing Network had exceeded S$1m in Year 2009.

As the sole signatory of Staffing Network's bank account, she personally managed and prepared the accounts of Staffing Network. She also tracked the revenue payments from her customers, made payments for Staffing Network's operating expenses and banked in customers' cheques into Staffing Network's bank account.

IRAS noted that the penalties for tax evasion can be up to four times the amount of tax evaded. Jail terms may also be imposed.