How a Durian King Got Caught by the Tax Man
There’s a new twist in Singapore’s juicy business scene: Shui Poh Sing, the 60‑year‑old mastermind behind the famed Ah Seng Durian shop, got slapped with a three‑week jail stint and a hefty $5,000 fine on May 7. He’s also on the hook for a staggering $77,077.91 penalty for evading taxes.
Behind the Scene
Shui and his 57‑year‑old brother Poh Chung owned the business, but their tax record was a bit… let’s say, a smidge shady.
- They confessed to under‑reporting about $708,000 of income over six years.
- That translates to roughly $161,604 in unpaid taxes.
- Poh Chung already faced a $10,000 fine and a $46,303.14 penalty last Friday.
Both siblings are the heirs to Shanghai Moh Lee Seng minimart, which shut its doors on Feb 20, 2012. They rebounded by launching Seng Chung Trading – the brand that became home to Ah Seng Durian.
Why the Tax Sixties Came Back?
Patrick Nai, a senior tax prosecutor from IRAS, told the court that the unreported durian sales income was later funneled into paying mortgage bills for their properties in Malaysia.
Interestingly, the gnarly detail: Shanghai Moh Lee Seng surpassed the $1 million GST threshold on Dec 31, 2006. But Shui, tasked with the accounts, missed the Jan 31, 2007 deadline to register for GST.
Defence’s “Oops” Tale
Defence lawyer Vinit Chhabra painted a picture of a “mix‑up”. The brothers used one bank account for every move – personal or business. Without a proper record‑keeping routine, income slid in while payments slipped out. It’s like trying to keep a veggie salad in a fridge that never opens.
Shui, having no formal training in accounting, took the reins after their family accountant retired. The lawyers claim he and his brother decided to hire a professional accountant in 2015 once the investigations intensified.
IRAS’s Word of Warning
IRAS isn’t playing games: it is clear that willful tax evasion could lead to penalties up to four times the evaded amount, plus possible jail time. The message is loud and clear: Keep those receipts and don’t sneak around the tax man.
All wrapped up, this tale reminds us that the jungle of Singapore’s consumer market is not just about the right flavor of durian but about keeping the books straight. And if you’re off‑track in tax, the court will find you very quickly.
