Following thorough investigations by the Commercial Affairs Department (CAD) and the Inland Revenue Authority of Singapore (IRAS), two men aged 40 and 73 are set to face court on 5 August 2025. They are accused of orchestrating a Goods and Services Tax (GST) Missing Trader Fraud involving about S$181 million in fictitious sales.
The Alleged Scheme and Charges
Between November 2017 and April 2018, the suspects allegedly established four shell companies to carry out sham business transactions. The men purportedly sold goods between these companies at inflated prices, creating fake sales records amounting to approximately S$181 million. These transactions were reportedly designed to enable false GST claims from IRAS.
Each man faces four counts of fraudulent trading under Section 340(5) read with Section 340(1) of the Companies Act.
The 40-year-old suspect is further charged with additional offences. He allegedly submitted three fraudulent GST refund claims totalling around S$11.8 million to IRAS. He also purportedly forged a supplier’s invoice to aid the GST registration of one of the shell companies and made three fraudulent refund claims under the Electronic Tourist Refund Scheme (eTRS), deceiving IRAS into issuing over S$140,000 in cash refunds for purchases that never occurred.
For these actions, the younger suspect faces:
- Three counts of attempted cheating under Section 420 read with Section 511 of the Penal Code;
- One count of forgery for cheating under Section 468 of the Penal Code; and
- Three counts of cheating under Section 420 of the Penal Code.
Potential Penalties and Enforcement
If convicted, both men face serious penalties. Fraudulent trading under the Companies Act carries a maximum imprisonment of seven years, a fine, or both. Forgery charges can lead to imprisonment up to ten years plus fines. Cheating and attempted cheating offences similarly carry up to ten years’ imprisonment and fines.
The Singapore Police Force and IRAS maintain a zero-tolerance policy against tax fraud. Stringent enforcement actions will be pursued against those engaging in such deceptive schemes.
Advisory for Businesses
Since 1 January 2021, GST-registered businesses claiming input tax on supplies involved in Missing Trader Fraud schemes risk denial of input tax claims and a 10% surcharge on the denied amounts. Businesses are urged to conduct diligent checks to avoid participation in fraudulent transactions.
From 1 January 2023, under the Goods and Services Tax Act, anyone knowingly participating in fraudulent arrangements may face fines up to S$500,000, imprisonment for up to 10 years, or both.
This case highlights the ongoing efforts to uphold Singapore’s tax compliance and financial integrity.