A Singaporean man was fined S$2,000 (US$1,480) for receiving a tax-free Rolex watch from his mother-in-law, who brought it duty-free as a gift for the couple when she visited Singapore as a tourist. According to the Inland Revenue Authority of Singapore (IRAS), Song Mingqiang bought a one-way ticket to Kuala Lumpur so he could enter Changi Airport Terminal 1’s departure transit area on Feb 17 with his mother-in-law, Jiang Xiuqing.
The 37-year-old assisted Jiang with the Goods and Services Tax (GST) refund application under the Electronic Tourist Refund Scheme, then took the watch and the S$773 (US$572) cash refund from her before she boarded her flight home.
It was apparent that Song had no intention of getting on his own flight — he also confessed that he was aware that only tourists were allowed to claim GST refunds. It’s unclear if he knew that buying a ticket to enter the airport’s departure area without subsequently leaving the country could land him in hot water with the police, but Song was arrested for suspected misuse of a boarding pass before he even stepped out of the airport.
“IRAS takes a serious view of anyone who makes false declarations to seek GST refunds under the tourist refund scheme and abuses the scheme. IRAS works closely with the enforcement authorities to uncover any attempt to defraud GST,” said IRAS in a media statement.
Since it is an offence to receive goods that a tourist has been refunded under the Tourist Refund Scheme for, Song could have been fined up to S$5,000 (US$3,701), and in default of payment, he could be looking at up to six months of jail time.
