新加坡税务合规警示：MLM代理与收入拆分的法律风险

Tax Crime Businesswoman Faces Charges for Evading Over $370,000 in Income Tax and Giving False Documents to IRAS Share: 27 Oct 2025 Chong Jia Ling, Genevieve (“Chong”), a 27-year-old businesswoman who distributed and sold products during the years 2020 and 2021, has been charged in court on 24 Oct 2025 for tax evasion offences. Chong faces the following charges: - making false entries in her individual income tax returns for Years of Assessment (“YA”) 2021 and 2022, resulting in tax undercharged amounting to $371,859, and - providing false documents to the Comptroller of Income Tax to support fraudulent expense claims amounting to $149,453 for YA 2021 and $45,190 for YA 2022.IRAS’ Audits on Commission AgentsIRAS runs regular audit programmes across various industries to ensure tax compliance among individuals, businesses and the self-employed. Using data analytics and advanced statistical tools, IRAS can cross-check data and detect anomalies.Between 2020 and 2024, IRAS audited and investigated more than 30 multi-level marketing (“MLM”) agents for anomalies in their tax reporting.IRAS reminds all commission agents, including MLM agents, to accurately report their full gross commission as revenue. Any remuneration received from related companies must be reasonable, reflect market value for the service performed and supported by proper documentation. Agents who incorporate multiple companies or entities without genuine commercial purposes, for the primary purpose of splitting or shifting income should note that such arrangements may be disregarded, with all commission income assessed directly to the agent.Commission agents must only claim legitimate business expenses that are directly related to income generation and supported by proper documentation. Personal expenses, purchases for own consumption, and bulk purchases made solely for rank advancement are not deductible. Claims without justification or supporting documents will be disallowed.Severe Consequences for Tax OffencesIRAS takes a serious view of non-compliance and tax evasion. The authority will not hesitate to prosecute offenders in court.Tax evasion - For those who wilfully evade tax, offenders may face a penalty of up to four times the amount of tax evaded, a fine of up to $50,000 and/or imprisonment of up to five years.Providing false information - Offenders who give false replies verbally or in writing to any IRAS request for information in order to evade tax will face a penalty of three times the amount of tax undercharged and be liable to a fine not exceeding $10,000 and/or imprisonment of up to three years.Reporting of MalpracticesBusinesses or individuals are encouraged to immediately disclose any past tax mistakes. IRAS will treat such disclosures as mitigating factors when considering actions to be taken. Please refer to the IRAS website for more information on how to disclose past mistakes. Those who wish to report malpractices may make their submissions via this form.Cash Reward for InformantsA reward based on 15% of the tax recovered, capped at $100,000, would be given to informants if the information and/or documents provided lead to a recovery of tax that would have otherwise been lost. All payments are at the discretion of the Comptroller. IRAS will ensure that the identities of informants are kept strictly confidential. Inland Revenue Authority of Singapore