The sole-proprietor of the company Kung Seah Lim & Co and a Certified Public Accountant or CPA, Kung Seah Lim, was convicted in a court for the charge of willfully removing the corporate income tax trade amounting to $342,836.00 from his income tax return, for the Years of Assessment or YAs from 2006, 2007, 2009, 2010, and 2011, resulting to $45,567.73 income tax evasion.
Kung Seah Lim was the second person in Singapore who is practicing CPA in Accounting services Singapore who was sentenced for tax evasion. Kung Seah Lim was charged guilty for the two charges of corporate income Tax evasion which one of his corporate services. There were also three charges remaining which were taken for consideration. The Court declared Kung Seah Lim for six weeks imprisonment and has a fine of $105,400.53 or three times of the tax amount he evaded. For the payment of the said penalty, the default sentence is for about eighteen weeks.
The investigation shows that the company incorporation of Kung Seah Lim did not declare the trade income tax. It says that Kung Seah Lim has secretary staff to prepare the company’s expenses and invoice records as well as the loss and profit statements. According to the investigating team it was the sole responsibility of Kung Seah Lim to sign the tax invoices that are being issued to the customers and also with the business revenue. Kung Seah Lim stated that there is “no trade income” in the filing of the five YAs income tax return.
The delinquent tax agents also faced stiff penalties. The Inland Revenue Authority of Singapore or IRAS conducted serious interpretation for the offences of delinquent tax agents. According to them, the tax agents fully understand and have the knowledge and expertise in the tax system of Singapore. Therefore, they are expected to comply on the tax reporting responsibilities. IRAS also added that the tax agents are the partners of taxpayers in fulfilling the tax responsibilities. They must offer a tax secretarial services that is based from the existing tax laws. It is assumed that many of the tax agents are capable of delivering their duties in professional and ethical manner. It also mentions that IRAS will give preventive actions towards the agents who intentionally not declare their tax together with the undeclared taxes of their clients.
The reputation of the good and law abiding CPAs are being stained by the wrong doing of these bad CPAs. The malpractice in CPA profession must be eliminated so that the taxpayers will be properly regulated and govern to remit their taxes in rightful manners. The CPAs should act in accordance with the oath they make, to ensure that they become a good model to other CPAs whose intentions are good and would help for the common good and benefit. The taxes are the money of the people and must be used for the people, therefore every individual and businesses should properly remit their taxes based from its actual earnings.
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