SINGAPORE - Sports and concerts event firm Midas Promotions has been ordered to pay almost $800,000 in taxes, penalties and fines after failing to register for goods and services tax (GST), the taxman said in a statement on Friday.
This is compulsory for any business with a turnover of more than $1 million.
The promoter, which organises entertainment activities, was fined $7,000 and ordered to pay a mandatory penalty of $71,469.69, equivalent to 10 per cent of the $714,696.87 due.
This the total GST between June 2005 and April 30, 2012, that Midas had not accounted for, after failing to notify the Inland Revenue Authority of Singapore (Iras) it had become liable for registration.
According to the statement from Iras, investigations revealed that the total value of all the taxable supplies of Midas made in Singapore for the four quarters ending on March 31, 2005 exceeded $1 million.
The firm was thus required to notify the Comptroller of Goods and Services Tax of its liability to register for GST by April 30, 2005, or 30 days later, but it failed to do so.
As a result, Midas became liable to account for tax totalling $714,696.87 that it should have collected from its customers had it promptly registered for GST.
It has since registered with effect from June 1, 2005 and filed the required returns, Iras said.
Firms failing to register can be fined up to $10,000 and ordered to pay a penalty of 10 per cent of the tax due from the effective date of registration.
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