Two Men to Face Charges Over $181 Million GST Fraud Scheme in Singapore
Singapore – On August 5, 2025, two men will be charged in Singapore’s State Courts for being involved in a large Goods and Services Tax (GST) fraud operation that included about $181 million in phoney sales and a number of fake refund applications.
The suspects, aged 40 and 73, allegedly orchestrated one of the most elaborate cases of Missing Trader Fraud uncovered in the country, according to joint investigations by the Commercial Affairs Department (CAD) and the Inland Revenue Authority of Singapore (IRAS).
Between November 2017 and April 2018, the pair are believed to have set up four shell companies, which they used to simulate high-value sales between one another at artificially inflated prices. The transactions, authorities say, had no real economic substance and were fabricated to falsely justify GST claims from IRAS.
Both men will be charged with four counts each of fraudulent trading under the Companies Act, offences that could lead to prison sentences of up to seven years and fines upon conviction.
But the allegations go far deeper
The younger of the two men, aged 40, is believed to have taken the scheme further by submitting three fake GST refund claims to IRAS, attempting to unlawfully extract $11.8 million from the tax authority. He also allegedly forged a supplier’s invoice to manipulate the GST registration process for one of the shell companies involved in the fraud.
In addition, investigators say he submitted fraudulent claims under the Electronic Tourist Refund Scheme (eTRS), falsely asserting that over $140,000 worth of goods had been sold to overseas tourists—sales that never actually occurred. Based on these claims, he received GST refunds that he was not entitled to.
For these additional offences, the 40-year-old faces multiple charges, including:
Authorities have made it clear that this case underscores the serious consequences of tax fraud and the government’s firm stance on enforcement.
“The Police and IRAS take a serious stance against tax offences and will take stern enforcement action against perpetrators of such fraudulent arrangements,” a joint statement said.
To combat GST fraud, Singapore has introduced a series of new regulations. As of January 1, 2021, any GST-registered business that claims input tax on transactions linked to Missing Trader Fraud—whether knowingly or through negligence—will have its claims denied and be hit with a 10% surcharge.
Further strengthening enforcement, the Goods and Services Tax Act was amended in 2023. Under the new provisions, anyone who knowingly participates in a fraudulent tax arrangement can face up to 10 years in jail or a fine of up to $500,000—or both.
The case is a high-profile reminder of the risks and penalties that come with exploiting Singapore’s tax system, as well as the lengths that officials would go to to protect its integrity. The two accused are set to go to court this week.
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