Freight company manager fined nearly $2.4 million for evading GST

SINGAPORE – Singapore Customs found anomalies when they checked a freight forwarding company and investigated the company.

It was discovered that the sole director of the company, Chin Yew Wen, had engaged in a scheme where he pocketed more than $400,000 for himself.

Chin, 56, was fined $2,380,000 in court on Tuesday July 5 after pleading guilty to two counts of fraud to evade payment of goods and services tax (GST).

Two similar charges and four other charges of falsifying documents were considered at sentencing.

If Chin does not pay the fine, he will have to serve 32 months in prison.

Last month, another director of a freight forwarding company was fined $4,419,000 and sentenced to eight months in jail for committing fraud to evade payment of import GST goods and for falsifying documents.

Singapore Customs said on Tuesday that while checking Chin’s company, GLS Shipping, they discovered discrepancies between copies of a cargo clearance permit submitted by the importer and the company.

Goods clearance permits are required by an importer to account for the importation and payment of taxes of goods.

In this case, the value of the goods on the copy of the importer’s permit was greater than the value on the copy provided by GLS Shipping.

Investigations revealed that between November 2017 and July 2020, Chin submitted false values ​​of goods when declaring 918 permits.

Singapore Customs said: “He amended the invoices provided by importers to reflect the lower values ​​and declared the lower values ​​to customs.

“After the approval of the (permits) and payment of the GST based on the lower values, Chin amended the (permits) to reflect the actual value of the goods and gave the amended (permits) to the importers to collect the legitimate amount of GST from them.”

Chin pocketed the difference between the GST paid by importers to GLS Shipping and the GST paid to customs, which was $433,484.49.