Category | Details |
---|---|
Defendant | Tee Siew Gim |
Age | 63 |
Businesses Involved | Hock Hin Undertaker (Partner) & Eternal Life Bereavement Services (Sole Proprietor) |
Sentence | 21 weeks in jail |
Total Penalties & Fines | $341,327.75 (penalties) + $3,000 (fine) |
Offences | Income Tax Evasion, Failure to Register for GST |
Income Tax Evasion Details | Underreported income for YA 2018 & 2019, resulting in $101,630.24 unpaid taxes |
Penalty for Income Tax Evasion | $304,890.72 |
Failure to Register for GST | Revenue exceeded $1 million for 4 consecutive quarters ending 31 March 2014, but no GST registration |
Unpaid GST | $36,437.03 |
Penalty for GST Non-Compliance | $36,437.03 + $3,000 fine |
IRAS Investigations | Since 2019, IRAS audited 65 businesses, recovering $3 million in taxes and penalties |
Number of Prosecuted Cases | 3 undertakers + 1 religious practitioner |
IRAS Warning | Tax evasion penalties can be up to 4x the amount of tax evaded plus jail time |
GST Registration Rule | Required if taxable turnover exceeds $1 million within 12 months |
Voluntary Disclosure | Encouraged, may reduce penalties |
Informant Reward | 15% of tax recovered, capped at $100,000 |
Tee Siew Gim, a 63-year-old partner of Hock Hin Undertaker and sole proprietor of Eternal Life Bereavement Services, has been sentenced to 21 weeks in jail and ordered to pay a total of $341,327.75 in penalties, along with a $3,000 fine. The charges stem from his involvement in income tax evasion and failure to register Hock Hin Undertaker for Goods and Services Tax (GST).
Tee is the fourth undertaker to be convicted of tax-related offences since the Inland Revenue Authority of Singapore (IRAS) began investigating the funeral industry in 2019.
Sentencing Details
Income Tax Evasion (2 counts):
Tee underreported his income for the Years of Assessment (YA) 2018 and 2019, resulting in $101,630.24 in unpaid taxes. For this, he was sentenced to 21 weeks in jail and ordered to pay a penalty of $304,890.72.
Failure to Register for GST (1 count):
Hock Hin Undertaker’s revenue exceeded the $1 million threshold for four consecutive quarters ending 31 March 2014, but Tee failed to register the business for GST. This resulted in $36,437.03 in unpaid taxes, for which he was fined $3,000 and ordered to pay a penalty of $36,437.03.
Case Background
In September 2019, IRAS conducted raids on three funeral operators, including Hock Hin Undertaker, covering over 10 locations across Singapore. Investigations revealed that Tee had intentionally falsified his income tax returns for YA 2018 and 2019 to evade taxes. Additionally, he neglected to register Hock Hin Undertaker for GST despite the business surpassing the revenue threshold in 2014.
The funeral industry, which often involves significant cash transactions and inconsistent record-keeping, has been identified as high-risk for tax non-compliance.
Since 2019, IRAS has audited and investigated 65 businesses in the sector, recovering over $3 million in taxes and penalties from 49 businesses. To date, three undertakers and one religious practitioner have been prosecuted.
IRAS Warns Against Tax Evasion
IRAS takes a strong stance against tax evasion and non-compliance. Offenders face severe penalties, including fines of up to four times the amount of tax evaded and potential jail time. Businesses are reminded to monitor their income and register for GST if their taxable turnover exceeds $1 million within a 12-month period. Failure to register can result in penalties of $10,000.
Encouraging Voluntary Disclosure
IRAS encourages businesses and individuals to voluntarily disclose any past tax errors. Such disclosures may be considered as mitigating factors when determining penalties. For more information on how to disclose past mistakes, visit the IRAS website.
Cash Rewards for Informants
IRAS offers cash rewards to informants whose tips lead to the recovery of unpaid taxes. The reward is 15% of the tax recovered, capped at $100,000. The identities of informants are kept strictly confidential.
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