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$6.8m in penalties and taxes imposed on nightclubs that charge for flower garlands
IRAS said flower garland sales are taxable supplies, and that GST applies to the full value of garland sales, not just the portion retained by the nightclub.
PHOTO: SINGAPORE POLICE FORCE
Published Jul 22, 2026, 11:45 AM
Updated Jul 22, 2026, 01:10 PM
SINGAPORE – The Inland Revenue Authority of Singapore (IRAS) has imposed over $6.8 million in taxes and penalties on errant nightclubs for improper tax declarations of flower garland sales.
The authority told The Straits Times that it has taken action against eight such nightclubs since 2021.
IRAS had on July 3 published an article about the tax declarations for flower garland sales at nightclubs, as part of their efforts to help businesses understand their tax obligation.
These garlands are bought by customers and presented to performers at the club as a show of appreciation.
The performer usually receives a percentage of the amount received for each garland.
IRAS said flower garland sales are taxable supplies, and that GST applies to the full value of the flower garland sales, not just the portion retained by the nightclub.
It added that it conducts regular risk-based tax audits across all industries to ensure accurate tax filings.
At IRAS’ request, businesses have to submit their supporting documents to verify the completeness and accuracy of their tax reporting.
Those who fail to keep proper records or under-report their tax obligations can be subject to penalties and enforcement actions.
IRAS said in the article that some nightclubs have tried to get “creative” with how the income from garland sales are reported.
A nightclub operator was in 2021 jailed for three weeks and fined $8,500 for evading taxes and omitting goods and services tax (GST).
He also had to pay a penalty of almost $340,000.
Goh Kim Teck, who ran the Century 21st Night Club in Rochor, told his staff not to use the cash register for flower garlands bought with cash from 2011 to 2014.
When bookkeepers filed GST for the club, he would hide the actual sales from them.
In 2022, another operator was jailed and penalised $630,861 for a similar offence.
Soon Kok Khoon, who operated Club Posh Entertainment and West Palace Entertainment, had instructed accountants to omit the clubs’ revenue from the sale of flower garlands, priced between $50 and $100,000, and the output tax.
He also instructed staff to divert the sales revenue of the GST-registered clubs to two shell entities which were not GST-registered.
Besides declaring taxes for the sale of flower garlands, IRAS said in the article that withholding tax applies to performers who are non-residents.
The 15 per cent withholding tax applies to the income earned by these performers, including their salaries and the money they receive from flower garland sales.
Nightclubs are required to file and pay the withholding tax to IRAS by the 15th of the second month from the date of payment to these non-resident performers.
