Sei sulla pagina 1di 2

Midas Promotions to pay $793,000 in taxes, penalties and fines for failing to register f

Page 1 of 2

Media Releases and Speeches

News and Events > Media Releases and Speeches >

Print

Close

Midas Promotions to pay $793,000 in taxes, penalties and fines for failing to register for GST

28 Mar 2014

Midas Promotions Pte Ltd (“Midas”), a sports and concerts event promoter, was ordered to pay about $786,000 in taxes and penalty and a court fine of $7,000 for failing to inform the Comptroller of Goods and Services Tax (“GST”) of its liability to register for GST.

Businesses with over $1 million annual sales must register for GST

Under the law, a business with annual taxable turnover exceeding $1 million must register for GST. A GST- registered business is required to charge GST on its sales and can offset the GST it pays on its purchases before it accounts for the net difference to IRAS.

Businesses are required to regularly assess whether they are required to be registered for GST. In most cases, a business must register for GST when the business’ taxable turnover for the past 4 quarters is more than $1 million, or when the business’ taxable turnover for the next 12 months is expected to exceed $1 million. Businesses need to register for GST within 30 days of the date on which their liability to register for GST arises.

How the Offence was Committed

IRAS’ investigations revealed that Midas’ taxable turnover already exceeded $1 million for the four quarters ending 30 Jun 2004, 30 Sept 2004, 31 Dec 2004 and 31 Mar 2005. It failed to inform the Comptroller of GST of its liability to register for GST within 30 days of the end of 31 Mar 2005, that is, by 30 Apr 2005.

Further checks conducted by IRAS with a ticketing company which provided services to Midas confirmed that the total value of all of Midas’ taxable supplies made in Singapore exceeded $1 million during the relevant period.

Consequently, a total GST amounting to $714,696.87 between 1 Jun 2005 and 30 Apr 2012 was not accounted for by Midas. In addition to paying the GST, Midas has to pay a penalty equal to 10% of the amount of the tax due. This amounted to $71,469.69. Midas was also fined $7,000 by the Court.

Penalties for Failure to Register for GST

IRAS reminds businesses to follow GST registration rules by closely monitoring their taxable turnover at the end of each quarter and ensuring that they promptly register for GST when their turnover exceeds $1 million per year. Regular audit programmes are carried out by IRAS to identify cases liable for compulsory GST registration.

Businesses failing to register for GST even though they are required to do so by law can be fined up to $10,000 and pay a penalty equal to 10% of the tax due from the date on which the business is required to register for GST. The business’ effective date of GST registration will be back-dated to the day that its liability to register arose. Consequently, the business will have to pay the outstanding GST on all its past transactions since the effective date of registration, even if this amount was not collected from its customers.

Reporting of Malpractices

Businesses or individuals are encouraged to immediately disclose any past tax mistakes. IRAS will treat such disclosures as mitigating factors when considering action to be taken. Those who wish to disclose past mistakes, reveal evaded taxes, or report malpractices that might indicate tax evasion, can write to:

Inland Revenue Authority of Singapore Investigation & Forensics Division

55 Newton Road, Revenue House

Singapore 307987 Email: ifd@iras.gov.sg

http://www.iras.gov.sg/irasHome/print.aspx

29/3/2014

Midas Promotions to pay $793,000 in taxes, penalties and fines for failing to register f

Page 2 of 2

Cash Rewards for Informants

A reward of up to 15% of the tax recovered, capped at $100,000, would be given to informants if the information and/or documents provided lead to a recovery of tax that would have otherwise been lost. IRAS would ensure that the identities of informants are kept strictly secret and confidential.

Inland Revenue Authority of Singapore

http://www.iras.gov.sg/irasHome/print.aspx

29/3/2014