Under normal circumstances, GST is to be accounted for at the earliest of the following events:-
- date when goods are delivered or made available to your customer;
- date when payment is received; or
- date of issuance of invoice.
But when it comes to trading of gold where the prices are dependent on fluctuations in the market for a period of 90 days.
The law allows that the invoice to be issued on the 90th day with the price determined by (assuming the seller has not received any payment),
- buyer/seller; or
- otherwise based on the open market value prevailing on that day.
This method of accounting is only peculier to sales of gold jewellery.
If you have been charged by IRAS for tax evasion, would you accept the accept the charges and submit yourself to whatever punishments befitting OR would you seek your justice in court? What did Mr Looi, our famour curry puff entrepreneur do under similar circumstances?
For income tax offences
Section 96 and Section 96A provide for statutory presumption which relieves the prosecution from having to prove an intention to evade tax, the very hallmark of tax evasion.
Where a false statement is found to have been made in the taxpayer’s return, accounts or records, this is considered proof of an intention to evade tax.
You can try to challenge the presumption by having the burden of to disproving the presumption in trial.
For GST violations,
The advantage is also with IRAS, the plaintiff / prosecution. The defence ie. the alleged violators, would have to prove its case beyond reasonable doubt.
To date, very few persons charged with tax evasion have been brave enough or not foolish enough to seek justice in court.
As for our Mr Looi, he pleaded guilty with any legal representation.
Mr Sharma, a partner of KhattarWong rallied the authority to level out the playing field ie. BOTH prosecution and defence are required to prove their case in court.