Tourist fined $16,000 for false GST refund claims

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Tourist fined $16,000 for false GST refund claims
A tourist from Hong Kong has been fined $16,000 Friday for declaring items he did not purchase to claim goods and services tax (GST) refunds.

Businessman Hung Yat Sing admitted to declaring that he had bought pearl necklaces and bracelets here, claiming some $5,481 in refunds at Changi Airport on 12 June.

The 46-year-old took advantage of the Tourist Refund Scheme (TRS) that is available to non-residents, who are exempted from paying GST on items purchased here to be brought out of the country.

It turned out, however, that Hung was a courier for the items, bringing them out of Singapore for a commission — he had not paid for the items, and they did not belong to him either, an offence under the GST act.

Inland Revenue Authority of Singapore (IRAS) principal legal officer Patrick Nai said investigations revealed that when Hung made his claims for GST refunds, he had not satisfied the required conditions.

Hung was then questioned by IRAS when he returned here last month on holiday.

In a statement, IRAS said it takes a “serious view” of foreigners who try to abuse the TRS scheme by making false declarations of their purchases.

“Strong enforcement measures, including prosecution, will be taken against such offenders,” it said.
 
I'm not familiar with GST and TRS. I just pay and pay. I'm aware of the existence of TRS but that's just plain silly, isn't it? Isn't it supposed exempt GST from goods not used used or consumed in Singapore to encourage tourist purchases? What's the difference if he bought it for someone else? What has commission in cash or in kind paid outside Singapore got to do with it? By logic, he should even be able buy it and resell it in HK or elsewhere.
 
He would be able to claim the TRS if not for that amount of $5.4k, sibe greedy this guy....
 
I'm not familiar with GST and TRS. I just pay and pay. I'm aware of the existence of TRS but that's just plain silly, isn't it? Isn't it supposed exempt GST from goods not used used or consumed in Singapore to encourage tourist purchases? What's the difference if he bought it for someone else? What has commission in cash or in kind paid outside Singapore got to do with it? By logic, he should even be able buy it and resell it in HK or elsewhere.

The logic is the goods could still be in Singapore. The TRS counter will not inspect your goods and assess the worth. The only inspect the documents.

This is a trick commonly practised by luxury watch companies where salesmen arrange for GST refund but end of the day it's a Singaporean who bought it.
 
The logic is the goods could still be in Singapore. The TRS counter will not inspect your goods and assess the worth. The only inspect the documents.

This is a trick commonly practised by luxury watch companies where salesmen arrange for GST refund but end of the day it's a Singaporean who bought it.
the goods will be checked again after you check in.....dun see how the guy can be faulted.....
 
the goods will be checked again after you check in.....dun see how the guy can be faulted.....

The salesmen know how to arrange. They have been doing this for ages. Of course, they get a cut from the refund.

I bought a notebook from Thailand; I got my VAT refund without inspecting the physical goods.
 
Fucking asshole hongkie doesn't want to pay GST to help our poor :oIo:
 
The logic is the goods could still be in Singapore. The TRS counter will not inspect your goods and assess the worth. The only inspect the documents.
Check-in goods will have to be shown at the departure hall area, hand carried goods, is inside the transit area. It is necessary to show to the goods at both GST counters (Departure & Transit area)
 
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The salesmen know how to arrange. They have been doing this for ages. Of course, they get a cut from the refund.

I bought a notebook from Thailand; I got my VAT refund without inspecting the physical goods.

That is in Thailand, i dun see how it can be done here.

I had bought stuff for myself and gave to the gf to bring out of the country to claim gst and after she comes back in with the items on her next trip.
 
That is in Thailand, i dun see how it can be done here.

I had bought stuff for myself and gave to the gf to bring out of the country to claim gst and after she comes back in with the items on her next trip.

No point arguing over this. It's a fact because the salesman is a close friend. There must be ways to go around it, and of course it's not known to many. But go to any Big 3 watch shops and ask. You will get a better picture. But they will take 3% from the 7% GST refund, as far as I know.
 
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No point arguing over this. It's a fact because the salesman is a close friend. There must be ways to go around it, and of course it's not known to many. But go to any Big 3 watch shops and ask. You will get a better picture. But they will take 3% from the 7% GST refund, as far as I know.
Well guess i am not good friends enough with those watch salemen.........
Still dun get it......unless the GST counter staff or pple in transit area is in cahoots with the salesman.........if not i guess they get own people to buy a ticket or dress up as SIA pilot to enter transit area to take the item out of the transit area after verifying.....i am constantly looking for loopholes......
also dun buy in Ngee Ann City......the shitty place takes a cut of 2% on your GST....
 
Well guess i am not good friends enough with those watch salemen.........
Still dun get it......unless the GST counter staff or pple in transit area is in cahoots with the salesman.........if not i guess they get own people to buy a ticket or dress up as SIA pilot to enter transit area to take the item out of the transit area after verifying.....i am constantly looking for loopholes......
also dun buy in Ngee Ann City......the shitty place takes a cut of 2% on your GST....

If I remember correctly, it's not that complicated. It's all about filling up forms, and the watch remained with the owner in Singapore. Maybe it has something to do with their being listed companies ?
 
You guys talking about Thailand or SG GST? why you 2 talked like it's so complicated?
 
Another practice, which has nothing to do with GST, is watch salesmen using credit card purchase to extend loan.

If Narong is in need of say $10K and Ramseth happens to drop by and wants to purchase a $10K watch in cash, behind the counter I will use Narong's CC to pay for the watch with 12-month interest free instalments.

Ramseth will get his watch, I will take cash from Ramseth and pay $9500 to Narong. I keep $500 as my commission. If Narong defaults of his CC instalment, nothing will happen to me, and nothing will happen to Ramseth.

But Narong $10K loan is interest free !
 
Another practice, which has nothing to do with GST, is watch salesmen using credit card purchase to extend loan.

If Narong is in need of say $10K and Ramseth happens to drop by and wants to purchase a $10K watch in cash, behind the counter I will use Narong's CC to pay for the watch with 12-month interest free instalments.

Ramseth will get his watch, I will take cash from Ramseth and pay $9500 to Narong. I keep $500 as my commission. If Narong defaults of his CC instalment, nothing will happen to me, and nothing will happen to Ramseth.

But Narong $10K loan is interest free !
The one applying for GST refund has to be a foreigner, no PR, no long term visa, no employment pass.
 
If I remember correctly, it's not that complicated. It's all about filling up forms, and the watch remained with the owner in Singapore. Maybe it has something to do with their being listed companies ?

just asked a friend......this is modus operandi.......
buyer pays and takes the watch....standby foreign staff who does this type of runs and come in as tourist 'buys' the watches sold this way........brings out similar makes of the watches .....watches go to overseas outlet or are brought back here.
 
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Another practice, which has nothing to do with GST, is watch salesmen using credit card purchase to extend loan.

If Narong is in need of say $10K and Ramseth happens to drop by and wants to purchase a $10K watch in cash, behind the counter I will use Narong's CC to pay for the watch with 12-month interest free instalments.

Ramseth will get his watch, I will take cash from Ramseth and pay $9500 to Narong. I keep $500 as my commission. If Narong defaults of his CC instalment, nothing will happen to me, and nothing will happen to Ramseth.

But Narong $10K loan is interest free !

Good example. Perfectly legal and nothing immoral as far as I'm concerned. I did that with my credit card many times like when I'm low on cash and my friend wants to buy something and paying in cash, I'd say hey, pass me the cash and I'd sign for you. Whether I pay or receive commission from the salesman is private matter. No cheating is involved. The buyer gets what he paid for. Any default is between me and my bank.
 
Good example. Perfectly legal and nothing immoral as far as I'm concerned. I did that with my credit card many times like when I'm low on cash and my friend wants to buy something and paying in cash, I'd say hey, pass me the cash and I'd sign for you. Whether I pay or receive commission from the salesman is private matter. No cheating is involved. The buyer gets what he paid for. Any default is between me and my bank.

If it's perfectly alright, then I guess your salesman friend should not be afraid to let his employer know he has been profiting from such transactions.
 
If it's perfectly alright, then I guess your salesman friend should not be afraid to let his employer know he has been profiting from such transactions.

His boss knows. You think that bosses are stupid? But my deals don't involve commission. It's only a matter of favour. I'll return the favour next time by inviting them to a drink or helping them when they're in trouble.
 
His boss knows. You think that bosses are stupid? But my deals don't involve commission. It's only a matter of favour. I'll return the favour next time by inviting them to a drink or helping them when they're in trouble.

If the employer knows, it's fine.

Bosses are not stupid, of course. But if the watch shop is a listed co., then the boss may be too high up to know the hanky panky going on.
 
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