SIA pilot jailed and ordered to pay $182k over income tax evasion

SINGAPORE - A Singapore Airlines (SIA) pilot who evaded income tax and submitted false documents when asked for details of his rental properties was sentenced to six months' jail on Friday (April 21).

Andrew Soo Cheng Ai, 51, was also ordered to pay a penalty of $181,996 after he pleaded guilty to four charges under the Income Tax Act.

Soo's lawyer, Mr Patrick Nai, said his client has been on no-pay leave since he was charged with the offences in September 2022.

Tax prosecutor Vidhya Maheantharan said that during the time of his offences, Soo owned two properties in Balestier and Kim Yam roads that he rented out.

Investigations revealed that he made false entries pertaining to his income from the properties in the year of assessment 2014, with the wilful intent to evade tax.

In particular, Soo failed to accurately declare the rental income that he received from these properties. This resulted in $15,354 of tax undercharged, as the total chargeable income declared was $146,858 instead of $236,573, which was the actual amount.

When the Inland Revenue Authority of Singapore (Iras) asked for details of Soo's rental properties, including the total gross rent, expenses and net rent for the years of assessment between 2013 and 2018, he gave false information.

"Although the accused had been given multiple opportunities, the information that was provided by him to the Comptroller of Income Tax differed from the figures which he had filed in his income tax returns for the relevant years of assessment," said Ms Maheantharan.

She noted that if the false information had been accepted, it would have resulted in $35,310 of tax undercharged.

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Soo also created and submitted fictitious invoices and documents to Iras to support his inflated claims for expenses for his rental properties for the years of assessment in 2013 and 2014.

These documents were found to be fictitious and, if they had been accepted by Iras, would have resulted in $7,500 in taxes undercharged.

In mitigation, Mr Nai said his client co-operated with Iras during its investigations and is a first-time offender.

"He deeply regrets his actions and this was something he did that was out of the ordinary. In all likelihood, his career as a pilot will be affected by this," added Mr Nai.

In a statement on Friday, Iras said it takes a serious view of non-compliance and tax evasion.

"There will be severe penalties for those who wilfully evade tax. The authority will not hesitate to bring offenders to court. Offenders may face a penalty of up to four times the amount of tax evaded. Jail terms may also be imposed," it added.

Those found guilty of giving false information to Iras in order to evade tax will face a penalty of three times the amount of tax undercharged, and may be jailed for up to seven years, or fined up to $10,000, or both.

This article was first published in The Straits Times. Permission required for reproduction.