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What is tax evasion?

Tax evasion is when someone has deliberately provided IRAS with inaccurate or incomplete information about their activities to reduce their tax liability or obtain undue tax credits and refund.

Examples of evasion in income Tax:

failing to declare all assessable income

claiming deductions for expenses that were not incurred or are not legally deductible

claiming personal relief on fictitious dependents

Examples of evasion in GST:

claiming input tax on fictitious purchases

omitting output tax charged on local taxable supplies

Some signs that a person or business may be evading income tax:

not wanting to issue a receipt

keeping two sets of accounts

providing false invoices to support fictitious expenses

Some signs that a person or business may be evading GST:

not wanting to issue a receipt or a tax invoice

keeping two sets of accounts

providing false invoices to support fictitious expenses or purchases

providing false export documents to support zero-rated supplies of goods

giving false information on customers and suppliers

However, not all people or businesses who show these signs are deliberately and dishonestly evading tax. By telling IRAS what you know, they can investigate the matter to find out truth and take actions against those who have committed tax offences.