Suspected GST fraud: Woman, 56, arrested, over S$1 million in luxury watches seized after Iras raids

The Inland Revenue Authority of Singapore (Iras) conducted islandwide raids on more than 20 business and residential locations to crack down on fraudulent goods and services tax refund schemes.

A woman, 56, was arrested for one of the cases, the authority said in a Mar. 19 release.

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

A total of 179 luxury watches, estimated to be worth more than S$1 million, were also seized.

The suspect is believed to have created fictitious purchases, inflated transactions and used false tax invoices to support fraudulent GST refund claims.

Other cases

Another seven individuals from the other cases are assisting Iras with investigations.

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

Some of them involved the alleged use of shell companies to facilitate fraudulent GST refund claims.

The operation forms part of Iras’ enhanced enforcement efforts to take firm action against businesses and individuals who deliberately attempt to defraud the government through fictitious GST refund claims.

A GST-registered business can claim back the GST it has paid on its purchases.

This is provided that the tax paid exceeds the GST it has collected from its customers.

Non-compliance uncovered

In 2025, Iras audited more than 1,300 businesses making GST refund claims.

Various forms of non-compliance were uncovered, including incorrect GST filings and unsupported refund claims.

These audits resulted in a recovery of over S$100 million in taxes and penalties.

While most non-compliance is due to poor internal controls or incorrect application of GST rules, Iras’ audits also uncover fraudulent GST refund claims.

Penalties

Iras said deliberate GST fraud is a serious offence, and it will take firm action against those who attempt to abuse the GST system.

Offenders may face a penalty of three times the amount of tax undercharged, in addition to a fine not exceeding S$10,000 and/ or a jail term of up to seven years.

Businesses involved in fraudulent schemes may also face additional regulatory and enforcement actions.

Businesses that identify errors in their submissions are encouraged to make voluntary disclosures to correct these errors, as reduced penalties may apply.

Iras will treat such disclosures as mitigating factors when considering actions to be taken.

Businesses or individuals are encouraged to report any suspected tax malpractices or disclose any past tax mistakes.

Informants who provide information or documents that lead to a recovery of tax that would have otherwise been lost, may receive a reward based on 15 per cent of the tax recovered, capped at S$100,000.

Iras will ensure that the identities of informants are kept strictly confidential.

All photos via Iras