SINGAPORE — A father and son have been charged in Singapore over their alleged roles in a massive Goods and Services Tax (GST) “missing trader fraud” scheme involving about S$181 million (RM595 million) in fictitious sales, Singapore-based news outlet CNA reported yesterday.

The case centres on “missing trader fraud”, where a seller collects GST on sales but does not pay the tax to Singapore’s Inland Revenue Authority (IRAS). Other businesses in the supply chain continue to claim refunds for GST they say they paid on purchases — even though the tax was never remitted.

Singapore police said Derrick Yeo Wei Kin, 40, and his father, Yeo Kian Huat, 73, allegedly set up four shell companies and conducted sham transactions between November 2017 and April 2018. These deals, at inflated prices, allegedly totalled S$181 million and were used to claim fraudulent GST refunds from IRAS.

CNA reported that the younger Yeo allegedly filed three false GST refund claims seeking S$11.8 million, forged a supplier’s invoice to secure GST registration for one of the companies, and made more than S$140,000 in false refund claims under Singapore’s electronic tourist refund scheme.

Both Singaporeans face four charges each of fraudulent trading under the Companies Act. The younger Yeo pleaded not guilty, while the older Yeo said he would be claiming trial. Neither is represented by a lawyer, and the younger Yeo already faces several other charges from earlier proceedings.

The cases have been adjourned for pre-trial conferences. If convicted, each man faces up to seven years in jail, a fine, or both.