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SINGAPORE: A mobile phone seller is the first to be fined for failing to register with the goods and services tax (GST) for online sales.
Edwin Pang Chung Jie, 40, was fined S $ 4,000 and a fine of S $ 11,802.32 on Friday (November 27) for a charge under the Goods and Services Tax Act, and they were taken in consideration four other charges.
He paid the total sum of S $ 15,802.30.
The court heard that Pang sold mobile phones and related accessories through its Edmobile and Moogi businesses, on platforms such as Lazada, Shopee, Qoo10 and Carousell.
The total value of its supplies subject to tax between December 2012 and September 2013 exceeded S $ 1 million, making it eligible for GST registration.
However, it did not, and this resulted in it owing S $ 118,023 in taxes during that period.
He also filed incorrect income tax returns without a reasonable excuse and did not keep proper records of the invoices received for his sole proprietorships.
For not notifying the GST Comptroller of your responsibility to be registered under the Act, the penalties are 10 percent of the tax owed, a penalty of up to S $ 10,000, or an additional penalty of S $ 50 for each day during which The crime continues after conviction.
Between 2015 and 2019, the Internal Revenue Authority of Singapore (IRAS) said it recovered more than S $ 3.8 million in taxes and penalties from 65 audit cases on taxpayers operating online businesses.
IRAS said that all income from e-commerce and online companies in Singapore must be reported for tax purposes, just like regular physical stores.
Individuals, sole proprietors or partners of a partnership who receive more than S $ 6,000 in annual net business income this year will be required to file a tax return for the 2021 Assessment Year.
READ: More power for taxpayers to seize assets for investigations between changes to the GST Act
Those who work for an employer but earn additional income separately from an online business must also report it in the “Trade, Business, Profession or Vocation” section on their individual income tax return.
Online business income to be reported includes sales of goods on e-commerce websites and social media platforms, advertising revenue through video channels, social media posts or blogs, commissions for promoting a company’s products or services and digital services such as graphic and online design. tutorships.
IRAS said in Pang’s indictment that it seriously considers non-compliance and tax evasion.
“There will be severe penalties for those who deliberately evade taxes. The authority will not hesitate to take violators to court. Violators can face a penalty of up to four times the amount of taxes evaded. Jail terms can also be imposed.” said. .
