Singapore restaurant owner charged with S$3.8 million tax evasion, money laundering

The owner of a popular Singaporean restaurant chain, Eminent Frog Porridge & Seafood, has been charged with significant tax evasion and money laundering offenses. Buntono, who uses a single name, faces 30 charges related to allegedly evading approximately S$3.8 million in income and Goods and Services Tax (GST) between 2016 and 2024.

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Companies in Singapore must register for GST if their taxable turnover exceeds S$1 million in a calendar year or is expected to exceed S$1 million in the next 12 months.

Court documents reveal that Buntono is accused of underdeclaring his income tax and failing to register his business for GST, despite a taxable turnover exceeding S$1 million. He is also alleged to have hidden assets derived from these activities, including over S$2.4 million in cash, a Lamborghini Aventador, and a landed property.

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Sole proprietors must register for GST once the combined turnover from all their businesses and income from any trade, profession or vocation exceeds or is expected to exceed S$1 million in the next 12 months, they noted.

The investigation, a collaborative effort between the Inland Revenue Authority of Singapore (IRAS) and the Singapore Police Force's Commercial Affairs Department, uncovered the alleged scheme. Authorities reminded businesses that failure to register for GST can result in penalties, including 10% of payable tax and fines, while deliberate tax evasion can lead to substantial fines and jail time.

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Any business that fails to register for GST will still need to pay the tax on all their past transactions from the date the business became liable for GST registration, and it is payable even if the amount was not collected from customers, the authorities said.