Luxury bag retailer fined $190k for GST evasion

Luxury bag retailer fined $190k for GST evasion
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SINGAPORE - A retailer of branded handbags and wallets has been fined $190,000, or 11 months and 240 days of imprisonment in default, for his fraudulent evasion of Goods and Services Tax (GST).

According to a statement released by the Singapore Customs, Yu Chung Tan, 47, a partner of LovethatBag LLP, imported 2,338 branded handbags by parcel post a total of 41 times between October 2011 and October 2013.

He had instructed suppliers to indicate the value of the goods imported as below $400, in an attempt to avoid paying GST for them.

Goods imported by parcel post, except dutiable goods, are not subject to GST when their value is below $400.

Additionally, Yu had also failed to declare the 519 items he purchased on 14 overseas trips from April 2012 to February 2014. The items include branded bags, wallets, shirts, umbrellas and shoes to be sold in Singapore.

The total amount of GST he evaded on these goods exceeded $54,460.

He pleaded guilty to 18 charges in total. Another 37 charges were taken into consideration in the sentencing.

Under the Customs Act, any person found guilty of fraudulent evasion of GST will can be fined up to 20 times the amount of tax evaded and/or be jailed for up to two years.

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