“Eh bro I’m going to Korea soon. Want anything?”
“Yes I want 10 pairs of FILA Disruptors.”
The above conversations might be familiar with some of you if you have friends who frequently travel overseas. After all, certain branded products are cheaper overseas than in Singapore.
So cheap that my kiasu aunt actually got five wallets from Coach when she was in Europe.
It is certainly a common practice to purchase branded products from overseas.
But taking advantage of this and making a business out of this “loophole”?
It might land you in trouble… if not done correctly.
Provided Personal Shopping Services
Singapore singer who won Suria’s reality singing competition in 2009, Sarah Aqilah, started to provide personal shopping and concierge services for her clients during her travels overseas through social media platforms.
Kind of like AirFov, you know.
Business on Instagram
Apart from Sarah’s services, she would also post pictures of the branded goods that she got while she was overseas on Instagram along with a price. She even offered instalment plans for her customers.
The branded handbags, wallets and shoes were purchased by Sarah while she was in Europe.
Those who were interested in purchasing the products could either email her or message her through WhatsApp.
Well, everything’s okay, right?
No.
Singapore Customs Investigated
After the Singapore Customs received a tip-off, they launched an investigation into Sarah’s business activities on Instagram.
They found out that she did not declare a total of 141 pieces of branded goods, worth over $205,980.
The total amount of GST evaded on the goods amounted to about $14,460.
Fined For Fraudulent Evasion Of Goods And Services Tax
In simpler terms, she had to pay for her mistake.
Sarah was fined $30,600 for failing to pay GST on the branded goods she brought into Singapore.
According to CNA, she had already paid $10,000 on Thursday and is given until 10 December 2019 to pay the rest of the fine.
She will have to serve 55 days’ in jail if she fails to do so.
On top of the fine, she had also paid back the full amount of unpaid GST.
Suffered Setbacks
As a public figure and a mother of three young children, the local singer had “suffered setbacks in her media appearances” and had faced the “emotional and mental strain” as a result of the proceedings.
Even Sarah’s husband was affected. His income had suffered a cut “due to association” with her, according to TODAYOnline.
Still Running Business
Sarah took to Instagram to express her feelings about the GST evasion scandal.
Despite the negatives, she still found something to be grateful for. She believes that whatever that happens in life is a “test to make us stronger”.
She will still be running her business with support from her loyal clients.
Responsibility Of Travellers
Singapore Customs reminded the public that the responsibility is on all arriving travellers to make an accurate and complete declaration of the dutiable and taxable items in their possession of duty and GST payment.
For evading GST, Sarah could be fined up to 20 times the amount of tax evaded or a jail term of up to two years or both.
More information on GST on items purchased overseas can be found here.
Watch this for a complete summary of what REALLY happened to Qoo10, and why it's like a K-drama:
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