Manufacturer and its managing director convicted of tax evasion
SINGAPORE: Pressure vessels manufacturer, Steel Forming and Rolling Specialists, and its managing director, Gan Oh Boon, were convicted of tax evasion on Tuesday afternoon. This is the first company and director to be convicted of abusing a tax exemption scheme for new companies in Singapore. Investigations revealed that the company set up six related firms in December 2004 to abuse the scheme. The company included fictitious expenses amounting to some S$1.6 million in its audited statements of accounts from 2004 to 2006, although no work or services were performed for the company. Steel Forming and Rolling Specialists consequently under—reported its profits by the same amount in its income tax returns for the Years of Assessment 2005 to 2007. Investigations also showed that Gan had omitted employment income in the form of benefits—in—kind, made up of hire—purchase instalments for his private car and his other private expenses paid for by the company. Gan was jailed for two weeks and ordered to pay almost S$997,000 in fines and penalties. The company was ordered to pay over a million dollars in fines and penalties.
— CNA/so
