Man sentenced to jail and fined S$1.4 million for tax evasion incitement

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On September 7, Pang Chuan Wah was sentenced to 14 months in jail and fined over S$1.4 million for instigating his son to evade taxes linked to their luxury watch business, KB Luxury Watch and Jewellery. Investigations revealed that Pang directed his son to under-declare business income and conceal GST liabilities by falsely reporting sales of S$920,000, despite actual sales exceeding S$10 million. This case marked the first prosecution involving the pre-owned luxury watch industry and resulted in undercharged taxes totaling more than S$465,000.

Consequences

This sentencing serves as a deterrent to others in the luxury retail sector, emphasizing the Inland Revenue Authority of Singapore’s (IRAS) strict stance on tax compliance. Given that IRAS recovered S$589 million in taxes and penalties in FY2025/26, the authority is likely to continue aggressive enforcement against willful tax evasion.

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