Loon Wai Yang v Public Prosecutor: Appeal on GST Act Conviction for False Tax Returns
In Loon Wai Yang v Public Prosecutor, the High Court of Singapore heard an appeal against the decision of the Magistrate's Court, which convicted Loon Wai Yang on five charges under the Goods and Services Tax Act for submitting false GST returns for Web Weaver Fusion Pte Ltd. The High Court, presided over by Justice Chua Lee Ming, allowed the appeal in part, setting aside the convictions and sentences for the first four charges but dismissing the appeal against conviction and sentence for the fifth charge. The court acquitted Loon Wai Yang on four charges but upheld the conviction on one.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Appeal Allowed in Part
1.3 Case Type
Criminal
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Loon Wai Yang appealed against his conviction under the Goods and Services Tax Act for false GST returns. The High Court allowed the appeal in part, acquitting him on four charges but upholding the conviction on one.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Loon Wai Yang | Appellant | Individual | Appeal Allowed in Part | Partial | Abraham S Vergis, Loo Yinglin Bestlyn |
| Public Prosecutor | Respondent | Government Agency | Appeal Dismissed in Part | Partial | Jordon Li |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chua Lee Ming | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Abraham S Vergis | Providence Law Asia LLC |
| Loo Yinglin Bestlyn | Providence Law Asia LLC |
| Jordon Li | Attorney-General’s Chambers |
4. Facts
- The Appellant was convicted of five charges under the GST Act for false GST returns.
- The false GST returns were submitted by Web Weaver Fusion Pte Ltd between May 2006 and April 2008.
- The Appellant held 50% of the shares in the Company.
- The Company was in the business of data communication services and software development.
- The Company was registered under the GSTA in 2002.
- The IRAS found that the Company had made false entries in its GST F5 returns for five quarters.
- The Company had overclaimed a total amount of $144,363.52 as GST refunds.
- The Appellant resigned as a director of the Company on 1 August 2005.
- Loon Cheng Yee took charge of the finance function in December 2005.
- The Appellant prepared the GST F5 return for 2008 Q1.
5. Formal Citations
- Loon Wai Yang v Public Prosecutor, Magistrate’s Appeal No 9055 of 2019, [2020] SGHC 34
- Public Prosecutor v Loon Wai Yang, , [2019] SGMC 39
6. Timeline
| Date | Event |
|---|---|
| Company registered under the GSTA | |
| Loon Cheng Yee joined the Company | |
| Appellant resigned as a director of the Company | |
| Loon Cheng Yee took charge of the finance function | |
| False GST returns submitted by the Company began | |
| Loon Cheng Yee left the Company | |
| IRAS conducted an audit on the Company’s GST returns | |
| False GST returns submitted by the Company ended | |
| High Court hearing date | |
| Judgment date |
7. Legal Issues
- False Statement in GST Return
- Outcome: The court upheld the conviction for the fifth charge, finding that the appellant had prepared the false GST return and could not rebut the presumption of guilt.
- Category: Substantive
- Sub-Issues:
- Over-reporting of input tax
- Under-reporting of output tax
- Requisite Diligence
- Outcome: The court found that the appellant had exercised the requisite diligence for the first to fourth charges, as he was not involved in the preparation or filing of the GST returns for those periods.
- Category: Substantive
- Related Cases:
- [1965] 1 MLJ 35
- Mistake of Fact
- Outcome: The court rejected the appellant’s claim that the false entries in the GST return for the fifth charge were honest mistakes, finding that he had not exercised due care and attention.
- Category: Substantive
- Related Cases:
- [1995] 1 SLR(R) 723
8. Remedies Sought
- Appeal against conviction
- Appeal against sentence
9. Cause of Actions
- Violation of Goods and Services Tax Act
10. Practice Areas
- Criminal Appeals
- Tax Law
11. Industries
- Data Communication Services
- Software Development
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Abdul Ghani bin Tahir v Public Prosecutor | High Court | Yes | [2017] 4 SLR 1153 | Singapore | Cited for the definitions of 'consent' and 'connivance' in the context of criminal liability. |
| Pillay v Public Prosecutor | High Court | Yes | [1965] 1 MLJ 35 | Malaysia | Cited to support the argument that a manager should only be held liable for failing to exercise diligence in matters they are expected to concern themselves with. |
| Tan Khee Wan Iris v Public Prosecutor | High Court | Yes | [1995] 1 SLR(R) 723 | Singapore | Cited for the principle that to avail oneself of the s 79 defence, the Appellant had to prove on a balance of probabilities that he had exercised due care and attention in making the claims in the GST F5 return. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Goods and Services Tax Act (Cap 117A, 2005 Rev Ed) s 62(1)(b) | Singapore |
| Goods and Services Tax Act (Cap 117A, 2005 Rev Ed) s 74(1) | Singapore |
| Goods and Services Tax Act (Cap 117A, 2005 Rev Ed) s 62(2) | Singapore |
| Penal Code (Cap 224, 1985 Rev Ed) s 79 | Singapore |
| Penal Code (Cap 224, 1985 Rev Ed) s 52 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Goods and Services Tax
- GST
- GST F5 return
- Input tax
- Output tax
- False GST returns
- Tax evasion
- Requisite diligence
- Mistake of fact
15.2 Keywords
- GST
- Tax evasion
- False returns
- Criminal appeal
- Singapore
- Goods and Services Tax Act
16. Subjects
- Criminal Law
- Tax Law
- Goods and Services Tax
17. Areas of Law
- Criminal Law
- Statutory Offences
- Goods and Services Tax Law