SINGAPORE — Five foreigners were arrested on Wednesday (Feb 1) for allegedly claiming GST refunds amounting to approximately S$167,253 for jewellery they did not personally purchase, following an investigation that stretched nine months.
They will be charged in court on Thursday.
The Inland Revenue Authority of Singapore (Iras) and Singapore Customs said on Thursday that each of the accused will face over 200 charges of engaging in a conspiracy to claim fraudulent Goods and Services Tax (GST) refunds under the electronic tourist refund scheme (eTRS).
If found guilty, they face a penalty of up to three times the amount of refund wrongfully claimed and a fine not exceeding S$10,000, and/or imprisonment of up to seven years.
The tax crime of the five were first discovered on May 27 last year at Changi Airport, triggering a joint investigation by Iras and the Singapore Customs.
Giving details on the modus operandi for such fake GST claims, the authorities said a “tourist” would pay local consumers, who are not entitled to GST refunds, for their jewellery invoices.
Using their passports and their ill-gotten invoices, these “tourists” would then get eTRS tickets from the respective shops and later claim the cash refunds when they depart the country.
Only tourists are eligible for GST refunds on goods they purchase and take out of Singapore. As a control measure, Singapore Customs officers will inspect the goods at the GST refund counter before a refund claim is approved.
“Iras will not hesitate to take stern enforcement action against these individuals and any persons assisting them,” the tax authority said.
