MISSING TRADER FRAUD
The officers and IRAS claimed that the GST missing investor fraud and alleged abuse of the system is the product of false transactions, and that these bogus claims are the basis for forged GST refund claims made to IRAS.
When a seller collects GST from sales but does n’t pay the tax to IRAS, it becomes a victim of missing trader fraud. The missing investor is the seller.  ,
Companies farther down the supply network are still claiming payments from IRAS for the GST that they have paid on their payments.  ,
Tan and Yeo had admitted to using M_Solution Trading, a shell company with no true company, to commit the deception. Yeo also , operated another firm, Crescendo Hardware Trading as part of the same scam. Sia was chosen as the chairman of M_Solution Trading.
Tan and Yeo forged 90 income payments issued by M_Solution Trading between September 2015 and December 2015 for alleged US$ 55 million sales.
These products appeared to have been sold through stores of different businesses, including Crescendo Hardware Trading, Crescendo, and finally producers, who requested payments from IRAS.
” These revenue were a farce and there were no real sales or sales”, SPF and IRAS said.
Yet though M_Solution Trading had only been GST-registered as of December 1, 2015, GST was likewise levied on these sales.
These false sales invoices were created to support the exporters ‘ succeeding claims for GST refunds.
In full, Tan and Yeo’s activities resulted in the distribution of false GST compensation claims equivalent to about S$ 7.53 million. Of that amount, IRAS had paid out about S$ 2.04 million in GST payments.
The officers and IRAS issued a warning that they would take strict legal action against GST missing investor fraud and that they would get harsh action against those who made such deceptive arrangements.
Any GST-registered business that is eligible for input tax relief from Jan. 1st, 2021, will be denied the charge and be subject to a 10 % tax on the charge for any offer that is denied.  ,
In order to prevent participating in deals suspected to be part of a missing investor fraud structure, the government highly advised companies to conduct due diligence checks and take the appropriate actions to address the threat identified.  ,