A director of a car import company and a former employee have been sentenced to jail and fined for their roles in evading duties and providing false information related to imported vehicles. The scheme involved suppressing the declared values of vehicles to reduce taxes and underreporting vehicle values during registration.
Fraudulent Scheme Uncovered
Lee, a 44-year-old Singaporean and former director of Crownston Line, pleaded guilty to eight charges of fraudulent evasion of duty totaling approximately $5,197,564. He also faced charges related to under-declaring vehicle values to the Land Transport Authority (LTA). He was initially fined $14 million but is now serving a 112-month jail sentence after failing to pay.
Lee also received a 12-month jail sentence for under-declaring vehicle values to the LTA, resulting in underpayment of the Additional Registration Fee (ARF). The court has ordered him to repay the outstanding ARF amount to the LTA.
Employee Complicity
Sim Yan Min, a 41-year-old Singaporean and former employee of Crownston Line, was also found complicit in the scheme. He pleaded guilty to four charges of abetting the fraudulent evasion of duty amounting to about $2,598,078, related to 1,120 imported vehicles. Sim assisted in preparing documents submitted to Customs and handled payments to overseas suppliers.
Sim was fined $6.8 million but is now serving a 72-month jail sentence after failing to pay. Authorities stated Sim admitted to remitting balance payments to Crownston’s overseas suppliers based on instructions from Lee, knowing the actual values of the cars had been under-declared.
Potential Next Steps
It remains unclear whether Lee’s 112-month sentence for defaulting on the fine will be served concurrently with or in addition to his 12-month sentence for under-declaring vehicle values. Singapore Customs and the LTA are currently clarifying this matter. Further investigations into similar cases could be a possible next step for authorities.
Frequently Asked Questions
What penalties can be imposed for fraudulent evasion of duties or GST?
Any person convicted of involvement in the fraudulent evasion of any duty or GST on imported goods can be fined up to 20 times the amount of duty and GST evaded and/or imprisoned for up to two years.
What are the penalties for providing incorrect information related to vehicle registration fees?
Anyone who gives incorrect information in relation to any matter affecting the amount of additional registration fee can be fined up to S$10,000 or face up to six months’ jail, with the maximum penalty doubled for amalgamated charges.
How many vehicles were involved in these fraudulent declarations?
Lee pleaded guilty to charges related to 976 motor vehicles, with another 1,505 vehicles considered during sentencing. Sim’s charges corresponded to duties for 1,120 imported motor vehicles.
How might increased scrutiny of import declarations impact the automotive industry in Singapore?
