Hoh Law Corporation represented Mr. Pang Chuan Wah in sentencing proceedings arising from income tax and Goods and Services Tax (GST) offences connected with a pre-owned luxury watch business.
The matter was publicly reported as Singapore’s first prosecution involving tax evasion in the pre-owned luxury watch industry.
Mr. Pang pleaded guilty and was sentenced to 14 months’ imprisonment. A financial penalty exceeding $1.4 million was also imposed.
In mitigation, it was submitted that Mr. Pang had acted out of a desire to support his son in building the business. Mr. Pang made full restitution of the taxes assessed and took steps to regularise the business affairs. He also rendered full cooperation to the authorities throughout the investigations and proceedings.
In submissions, Defence Counsel led by Mr. Mark Hoh argued that any enhancement of the custodial sentence sought by the Prosecution would be crushing. Mr Pang already faced a hefty financial penalty which would effectively wipe out the business gains accumulated over the years. Mr. Pang’s son, Pang Guo Long, was also charged in connection with the business, placing an overwhelming financial and emotional toll on the family.
Mr. Pang Guo Long’s case is still ongoing.
This case highlights the serious consequences of inaccurate income declarations and failures to comply with GST registration and reporting obligations. It also illustrates the importance of obtaining early legal advice, cooperating with the authorities, making restitution and taking genuine steps to put matters right.
Reported by The Straits Time: https://www.straitstimes.com/singapore/courts-crime/man-jailed-for-instigating-son-to-understate-luxury-watch-firms-income-evading-over-350k-in-taxes
Reported by Channel NewsAsia: Man gets jail, S$1.4 million penalty for instigating son to evade taxes on luxury watch business
Reported by Inland Revenue Authority of Singapore (IRAS): Businessman in Pre-Owned Luxury Watch Trade Convicted of Income Tax and GST Offences
