179 luxury watches worth over $1m seized in GST refund fraud raids

A 56-year-old woman was arrested on Tuesday (March 17) in a raid that was part of the Inland Revenue Authority of Singapore's (IRAS) crackdown on Goods and Services Tax (GST) refund fraud.

The IRAS said in a statement on Thursday that 179 luxury watches worth over $1 million were seized for investigation.

The woman allegedly created fictitious purchases, inflated transactions and used false tax invoices to support fraudulent GST refund claims.

Accounting records, electronic devices and other evidence linked to the alleged offences were also seized.

In all, tax investigators from the IRAS conducted raids at over 20 business and residential premises island-wide on March 17. Another seven people from other cases are assisting with investigations.

IRAS said that businesses across various industries, including logistics and wholesale trade, were identified in separate GST refund fraud cases.

Some of them allegedly used shell companies to facilitate fraudulent GST refund claims.

IRAS added that they conduct regular audits to detect anomalous GST refund claims and ensure claims comply with GST rules.

In 2025, more than 1,300 businesses making GST refund claims were audited, uncovering various forms of non-compliance, including incorrect GST filings and unsupported refund claims.

Over $100 million in taxes and penalties were recovered as a result, according to the authority.

"While most non-compliance is due to poor internal controls or incorrect application of GST rules, IRAS' audits also uncover fraudulent GST refund claims," they said.

Those convicted of deliberate GST fraud may face a penalty of three times the amount of tax undercharged, in addition to a fine of up to $10,000 and/or a jail term of up to seven years.

Businesses are encouraged to make voluntary disclosures if they identify errors in their GST refund claim submissions, in order to correct them, as reduced penalties may apply.

"IRAS will treat such disclosures as mitigating factors when considering actions to be taken," they added.

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chingshijie@asiaone.com