Interior firm unlawful GST collection


Interior firm unlawful GST collection



The sole proprietor of an interior design service provider was on Tuesday (May 12 Year 2015) ordered to pay a total penalty and fine of more than S$38,000 for unlawfully collecting Goods and Services Tax (GST) from his customer. ID firm owner convicted for unlawful GST collection




Mohaideen bin Osman, 39, the sole proprietor of Formz Design International (FDI), also has to pay to the Comptroller of GST the total amount of tax that he had unlawfully collected, said the Inland Revenue Authority of Singapore (IRAS) in a news release on Wednesday.


Mohaideen pleaded guilty to eight of 24 charges of unlawful GST collection. The remaining charges were taken into consideration during sentencing, said IRAS.


The Agricultural Bank of China (ABC) had engaged FDI to provide interior design and renovation services. Mohaideen was not a GST-registered person, but he issued 24 tax invoices with GST-inclusive prices to ABC, said IRAS.


Mohaideen then collected more than S$13,000 in GST from ABC between April and July 2009. He deposited the amount into FDI’s bank account and used it to pay his sub-contractors.


The court ordered Mohaideen to pay a penalty of about S$26,000. This is in addition to a fine of S$12,000. If Mohaideen defaults in paying the S$38,000, he will have to serve a 50-day jail term, said IRAS.


Ooork community designer advice consumer to make sure that the company was  a certified and qualified GST company before you made payment. Unlawful collection of the GST can be defined as a serious offence especially to businesses that are not GST registered.

– CNA/eg

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