Car importer jailed and fined

Tay Kien Chuan, parallel car importer, was fined $10.8 million for tax evasion. He under-declared the value of over 2,500 cars, thus resulting in cheating the government of taxes such as import duties and Goods and Sales Tax. These taxes are based on the Open Market Values (OMVs) of the cars, which is the cost of the car overseas, plus the cost of insurance and freight to Singapore. He was sentenced to 42 weeks jail, in addition, for furnishing false information to Customs Officers regarding imports from the United Kingdom. As for his huge fine, as he is unable to pay it, he will serve 354 weeks jail in default (about 7 years).

Reports suggest that Tay was caught because he used electronic means to communicate to his Japanese suppliers to tell them to under-declare the value of the imported cars., and these messages were found by investigators He had arranged with his suppliers to meet them in person to pay them in cash for the under-declared amounts.

Others also convicted for similar offences were Tan Chi Beng and Toh Chee Wee.

In some of these cases, the companies involved were also punished by the courts.