PP v Tan Teck Leong Melvin: GST Evasion under Customs Act & Sentencing
In Public Prosecutor v Tan Teck Leong Melvin, the High Court of Singapore heard an appeal by the prosecution against the sentence imposed on Tan Teck Leong Melvin by the District Judge for three charges under s 128D of the Customs Act for fraudulently evading Goods and Services Tax (GST) on imported goods. The High Court, comprising Sundaresh Menon CJ, Tay Yong Kwang JCA, and Vincent Hoong J, allowed the appeal in part, affirming the fine of $1m for each charge but increasing the default imprisonment term to 12 months for each charge, resulting in a total of 36 months' imprisonment in default of payment.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Appeal Allowed in Part
1.3 Case Type
Criminal
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Tan Teck Leong Melvin fraudulently evaded GST on imported goods. The court considered the appropriate sentencing framework for offences under s 128D of the Customs Act.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Public Prosecutor | Appellant | Government Agency | Appeal Allowed in Part | Partial | Tai Wei Shyong, Agnes Chan, Lim Shin Hui |
| Tan Teck Leong Melvin (Chen Deliang Melvin) | Respondent | Individual | Appeal Partially Dismissed | Partial | Bhaskaran s/o Sivasamy, Jai Prakash, Darryl Ho Jun Han |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Sundaresh Menon | Chief Justice | No |
| Tay Yong Kwang | Justice of the Court of Appeal | Yes |
| Vincent Hoong | Judge of the High Court | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Tai Wei Shyong | Attorney-General’s Chambers |
| Agnes Chan | Attorney-General’s Chambers |
| Lim Shin Hui | Attorney-General’s Chambers |
| Bhaskaran s/o Sivasamy | Skandan Law LLC |
| Jai Prakash | Skandan Law LLC |
| Darryl Ho Jun Han | Skandan Law LLC |
| Wong Pei Ting | Allen & Gledhill LLP |
4. Facts
- The respondent was the sole proprietor of T.L Freight, a freight forwarder.
- The respondent falsified consolidated packing lists to lower the value of imported goods.
- The falsified packing lists were provided to TL’s declaring agents.
- The declaring agents under-declared the value of goods to Singapore Customs.
- The respondent prepaid lower amounts of GST to his declaring agents.
- The respondent sent buyers invoices for sea freight charges and GST reimbursements based on the actual higher value of the goods.
- The respondent pocketed the difference between the higher amount of GST received from buyers and the lower amount prepaid to declaring agents.
5. Formal Citations
- Public Prosecutor v Tan Teck Leong Melvin, Magistrate’s Appeal No 9134 of 2022, [2023] SGHC 188
6. Timeline
| Date | Event |
|---|---|
| Respondent began fraudulently evading GST on imported goods. | |
| Respondent continued fraudulently evading GST on imported goods. | |
| Respondent started serving his default sentence. | |
| Hearing date | |
| Hearing date | |
| Judgment reserved |
7. Legal Issues
- Fraudulent Evasion of Goods and Services Tax
- Outcome: The court determined the appropriate sentencing framework for offences under s 128D of the Customs Act involving the fraudulent evasion of GST on imported goods.
- Category: Substantive
- Sub-Issues:
- Under-declaration of value of imported goods
- Falsification of consolidated packing lists
- Sentencing for Offences under s 128D of the Customs Act
- Outcome: The court provided a sentencing framework for offences under s 128D of the Customs Act, including guidelines for determining the indicative fine and default imprisonment term.
- Category: Procedural
- Sub-Issues:
- Appropriate fine quantum
- Appropriate default imprisonment term
- Application of totality principle
8. Remedies Sought
- Fine
- Imprisonment in default of payment of fine
9. Cause of Actions
- Fraudulent evasion of Goods and Services Tax
10. Practice Areas
- Criminal Law
- Tax Evasion
- Customs Law
11. Industries
- Freight Forwarding
- Import/Export
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Public Prosecutor v Tan Teck Leong, Melvin (Chen Deliang, Melvin) | District Court | Yes | [2022] SGDC 162 | Singapore | Cited as the grounds of decision of the District Judge. |
| Yap Ah Lai v Public Prosecutor | Court of Appeal | Yes | [2014] 3 SLR 180 | Singapore | Cited for the proposition that offences under s 128D of the Customs Act has two aims: the prevention of loss of revenue to the State and that it is in the public interest to reduce the consumption of harmful goods by raising their cost to the user. |
| Wong Kai Chuen Philip v Public Prosecutor | High Court | Yes | [1990] 2 SLR(R) 361 | Singapore | Cited for the principle that the larger the amount of GST evaded, the greater the culpability of the offender and the more severe the sentence of the court ought to be. |
| Vasentha d/o Joseph v Public Prosecutor | Court of Appeal | Yes | [2015] 5 SLR 122 | Singapore | Cited for the principle that indicative sentences should utilise the full spectrum of possible sentences but generally should stop short of the statutory maximum sentence as maximum sentences are usually reserved for the “worst type of cases falling within the prohibition”. |
| Mohamed Shouffee bin Adam v Public Prosecutor | Court of Appeal | Yes | [2014] 2 SLR 998 | Singapore | Cited for the principle that the totality principle requires the court to take a “last look” at all the facts and circumstances of the case and assess whether the sentence looks wrong. |
| Chia Kah Boon v Public Prosecutor | High Court | Yes | [1999] 2 SLR(R) 1163 | Singapore | Cited for the principle that a court must take into account the competing considerations of ensuring that on one hand, the fine imposed is sufficiently high to achieve the objectives of deterrence and retribution but, on the other hand, that the fine is of an amount that the offender can reasonably pay given his financial means. |
| Gan Chai Bee Anne v Public Prosecutor | Court of Appeal | Yes | [2019] 4 SLR 838 | Singapore | Cited for the principle that the totality principle is equally capable of having a boosting effect on individual sentences where they would otherwise result in a manifestly inadequate overall sentence. |
| Public Prosecutor v Hue An Li | High Court | Yes | [2014] 4 SLR 661 | Singapore | Cited for the explanation of the doctrine of prospective overruling. |
| Adri Anton Kalangie v Public Prosecutor | Court of Appeal | Yes | [2018] 2 SLR 557 | Singapore | Cited for the principle that the doctrine of prospective overruling should only be invoked in circumstances where a departure from the ordinary retroactivity of a judgment is necessary to avoid “serious and demonstrable injustice to the parties or to the administration of justice”. |
| Poh Boon Kiat v Public Prosecutor | High Court | Yes | [2014] 4 SLR 892 | Singapore | Cited as an instance where the doctrine of prospective overruling was invoked. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Customs Act (Cap 70, 2004 Rev Ed) s 128D | Singapore |
| Customs Act s 128L(2) | Singapore |
| Criminal Procedure Code (Cap 68, 2012 Rev Ed) s 124(4) | Singapore |
| Criminal Procedure Code s 124(5)(d) | Singapore |
| Criminal Procedure Code s 124(8)(a)(ii) | Singapore |
| Customs Act s 119 | Singapore |
| Criminal Procedure Code s 319(1)(b)(v) | Singapore |
| Goods and Services Tax Act (Cap 117A, 2005 Rev Ed) s 26 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Goods and Services Tax
- GST
- Customs Act
- Fraudulent evasion
- Consolidated packing lists
- Declaring agents
- Default imprisonment term
- Sentencing framework
- Amalgamated charges
15.2 Keywords
- GST evasion
- Customs Act
- Sentencing framework
- Default imprisonment
- Singapore
- Fraudulent evasion
16. Subjects
- Criminal Law
- Tax Law
- Customs Law
- Sentencing Guidelines
17. Areas of Law
- Criminal Law
- Statutory Offences
- Customs Act
- Criminal Procedure
- Sentencing