A Singapore retailer of branded handbags and wallets, trading as LoveThatBag, has been fined S$190,000 ($US141,444) for evading Goods and Services Tax (GST) payments.

In default, LoveThatBag partner Yu Chung Tan, 47, could be imprisoned for 11 months and 24 days.

Singapore Customs is using the case as a warning to retailers in general not to under-declare the value of stock.

The court was told that in the two years up until October 2013, Yu had imported 2338 branded handbags by parcel post on 41 occasions. He instructed his suppliers to indicate the value of the goods imported as below $400 in the import documents submitted to Singapore Customs, in an attempt to avoid the payment of GST.

Investigations also revealed that between April 2012 and February 2014, Yu had travelled overseas on 14 occasions and bought 519 items, including branded bags, wallets, shirts, umbrellas and shoes to sell in Singapore. Yu did not declare the goods for GST payment when arriving at the Changi Airport.

The total amount of GST evaded on these goods exceeded $54,460.

Yu pleaded guilty to 18 charges, and another 37 charges were taken into consideration in the
sentencing.

“We are keeping a close watch on such illegal practices by retailers,” says Singapore Customs Trade Investigation Branch head Fauziah Abdul Sani. “Those who try to evade duty and taxes will be dealt with severely.”

Under the Customs Act, persons found guilty of fraudulent evasion of GST are liable to a fine of up to 20 times the amount of tax evaded, and/or be jailed for up to two years.