Over S$1 million in luxury watches seized during Iras raids for suspected GST fraud
The crackdown on alleged false refunds leads to the arrest of a 56-year-old female suspect
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[SINGAPORE] The Inland Revenue Authority of Singapore (Iras) executed a series of islandwide raids targeting more than 20 business and residential locations as part of a crackdown on fraudulent goods and services tax refund schemes, it announced on Thursday (Mar 19).
The operation, conducted on Tuesday, led to the arrest of a 56-year-old female suspect for one of the cases. The authorities also seized 179 luxury watches with an estimated market value exceeding S$1 million in connection with the case.
Investigations suggest that the suspect allegedly utilised fictitious purchases, inflated transactions and falsified tax invoices to support fraudulent GST refund claims, Iras said.
Beyond the primary arrest, seven other individuals are currently assisting Iras with investigations into separate GST refund fraud cases.
“Preliminary findings indicate that businesses across various industries, including logistics and wholesale trade, were identified in separate GST refund fraud cases, with some involving the alleged use of shell companies to facilitate fraudulent GST refund claims,” the statement said.
More than S$100 million recovered in 2025
In 2025, Iras audited more than 1,300 businesses making GST refund claims. These audits uncovered various forms of non-compliance, ranging from poor internal controls to deliberate fraud.
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The exercise resulted in the recovery of over S$100 million in taxes and penalties.
A GST-registered business can claim back the GST it has paid on its purchases, provided that the tax paid exceeds the GST it has collected from its customers.
Iras has reiterated that deliberate GST fraud carries severe legal consequences. Upon conviction, offenders may face a penalty of three times the amount of tax undercharged, in addition to a fine of up to S$10,000, and/or imprisonment for a term of up to seven years.
The authority noted that businesses identifying errors in their submissions are encouraged to make voluntary disclosures. Such disclosures are treated as mitigating factors and may result in reduced penalties.
Furthermore, Iras maintains a reward scheme for informants. Individuals providing information or documents leading to the recovery of otherwise lost tax may receive a reward of 15 per cent of the tax recovered, capped at S$100,000.
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