GST Scam Warning To Consumer!

[pterchew]

dear brothers out there, i wish to share 2 of the above incidents that were
happened to me. it was happened few months ago but the reason why i
activate the alarm only now is becos 2 complaining letters was sent out to
the authority pertaining to the case for investigation, as such it is unfit to
disclose the scam for fear that it may affect the investigation. now, i think
it shld be time for my disclosure and i hope my action could make public
aware of the scam.

i was told tat i could get handphone cheaply in woodland centre. so,
obviously i will not hesitate to pay them a visit when i was looking for one for
myself. i was cheated into paying extra for the GST that i could jolly well
save it. i later filed a complain against them. few days later, i went back
again for my wife's handphone and with little smarter, but this time, they
have another type of scam to make me pay for unnecessary GST again.
again, i filed in another complain. the authority has since replied to my email
and they said they will look into the cases but will not disclosed the matter
to me after their investigation. well, i hope you guys can help to spread this
message to your friends and love one so that you ppl could take notice of
your purchase infuture.

the following are the elaborate incidents i wrote to the authority.

Dear sir/madam,

I wish to bring to your attention pertaining to the above.
I bought a new handphone from XXX XXX garment located at Blk 4A
woodlands centre road #01-XX on the 28/5/2005. I was told later that i have
to pay a 5% GST for the sales. however, it was only when i reached home
later that night than i realised that the sales invoice the shop issued to me
earlier wasn't a tax invoice. it was just an ordinary sales receipt without
even the GST reg no. on it. that really pissed me off because i have made
the GST payment. i went back to the shop on the next day to demand a
refund of my 5% if GST is not required by the shop. after hearing to my
complain, the shop owner than asked if i need a tax invoice for my purchase.
i replied of course i need one since i was charged for the GST. the owner
than walked to another shop #01-XX XXX ZZZZ trading located few unit
away which is also the shop that i made my nets payment during the
purchase yesterday. the owner came back with a new tax invoice which
printed no. is 23XX and GST reg no. is M9-000XXXX-P.

i strongly believed that the shop owner has been collecting gst taxes from
the buyers without issuing a valid tax invoice since most of the buyers there
are mostly malaysian. and these malaysian are ignorance with our tax
system. they would not be noticed that a gst is payable only with tax invoice
and not every business is eligible to collect gst. i suggest the authorities could
take action against these offenders for taking advantage of those foreigners
and our national fund.

i would be glad to assist you if it is required.

ok, the following is my next encounter at the same venue but different shop.

Dear Miss Lyu,

Thanks for your prompt reply.

I actually went back to the same mall to buy a new handphone for my wife
after that incident. I didnt want to go back to the same shop hoping that i
could make some saving on my new purchase if this new shop i going to is
not eligible to collect GST. To my horror, another way of GST scam surfaced
again. The incident goes like that...

I have been looking for a particular phone and after some bargaining we
settle at the cost of $365. With my first experience from another shop, i
asked if GST is payable. The shop assistance claimed that they are eligible to
collect and i have to pay. I asked whether if i could opt for paying by cash
without a tax invoice so that i could save for the GST. Again, the shop
assistance turned down my request. Well, after some calculation, the final
price with GST is $384. I then bargained down to $380. The shop assistance
agreed and eventually issued me an ordinary receipt without tax registration.
Immediately after i seeing this, i challenge the shop assistance that why is it
that she collected my GST payout but not issueing a tax invoice. She claimed
that i have not been paying full for the GST amount and as such she has the
right not to issue me a tax invoice. I'm puzzled with the way these bunch of
shop owners dealing with business. To prevent me from making a big show in
their shop, they eventually agreed to issue me a tax invoice if only i top up
the short fall of $3 for the GST. I agree to pay and you know what? The shop
assistance called up another shop nearby to check if they could help issue a
tax invoice for me. So, i think this shop is not eligible to collect GST but has
been doing so to make extra profit. The shop i bought the handphone is #01-
XX Blk 4A Woodland Centre Road. The tax invoice they issued to me is
belongs to YYY ZZZ Electronics #01-XX. GST reg no. M9-000XXXX-R / tax invoice no 16XX.

I wish to spread this 2 true encounters by me to all my friends on my mailing
list. But I dont wish to jeopardise your investigation if the news spread faster
than your action. So, please advise me on whether should i start posting it
now or when should i do that.

regards,

therefore, readers pls take note of the above scam and dont pay the extra
money if you could save for good.

thanks you,

[Bravo-2-0]

IMHO,for the biz owner to make a living, they may have absorb GST for particular transaction(during bargaining).meaning they are willing to cut down on their profit to complete the sale. (market now veri bad leh..)

Anyway, i think if complaints are lodge, IRAS may check their sale record. If i am not wrong, IRAS will base on their monthly sale and the shop have to pay the 5% of the sale amt. For eg, if the final sale figure on the receipt is $365 then next month the shop owner had to pay IRAS $18.25. even if $18.25 was not stated in the invoice.

I heard an incident about a scrap car spare dealer in Defu lane. he is kena mark by IRAS. 1 day, an officer pose as buyer and went to his place to buy a used radio. He was quoted $40 and when making payment, he ask for not issuing a receipt to save on the GST. The owner agreed and accept 4 $10 notes. The "buyer" walk out and return 2 mins later and id himself as IRAS Officer. In the end, the owner was fined $50,000. plus extra GST amt based on past record. The above is heard-say, so extra fig maybe wrong but i believed the incident is true.

Somethime, i think consumer and bizmen are on the losing side...only Govt is the only winner. sad...

[Eastpipper]

Originally Posted by Bravo-2-0

Somethime, i think consumer and bizmen are on the losing side...only Govt is the only winner. sad...

Agreed!Clap,clap,clap.

[pterchew]

Originally Posted by Bravo-2-0

IMHO,for the biz owner to make a living, they may have absorb GST for particular transaction(during bargaining).meaning they are willing to cut down on their profit to complete the sale. (market now veri bad leh..)

Anyway, i think if complaints are lodge, IRAS may check their sale record. If i am not wrong, IRAS will base on their monthly sale and the shop have to pay the 5% of the sale amt. For eg, if the final sale figure on the receipt is $365 then next month the shop owner had to pay IRAS $18.25. even if $18.25 was not stated in the invoice.

if a retailer is not eligible to collect GST, all the GST you pay will go straight
to their pocket. the invoice that they issue to you will be as those ordinary
invoices. they will also quote lump sum figure in total without elaborating
that they have collected a GST amount on the invoice. IRAS will not know
that GST has been collected in tat particular purchase since it is not shown.
in the event if tis case is go to court, the retailer could always twist his
words by saying tat the final amount printed on the invoice is not inclusive of GST.

therefore, a GST eligible retailer is subjected to issue only a tax-invoice wif
printing of their GST reg number on the invoice to prove tat they are eligible.
the tax invoice they issue must clearly stated the transaction price and
GST payable. IRAS will only based on the number of tax invoice issued to
collect the taxes from the retailer.

for my case, both of the retailers are not eligible to collect GST from buyer.
instead, they collected it from me thinking that i would not discovered their
scam. for those that has paid for their GST but only get to issue ordinary
invoices, those money they paid will eventually go into the retailer pocket.

[bonoedge]

Bro,the a/m incidents might indeed be scams for the retailers to get more out of their sales.

But dont forget that these retailers hav to 'cover back' the GST they
themselves hav to pay to the dealers when they stock in the phones.

so it might boil down to:

$335(assumed cost of phone bf GST)+$30(profit for the retailer) x 5%(GST)=$384

so if this is the case the retailer is having a marginal profit of juz $30.if they had
absorbed the 5% from the amt of $365,they would hav make a loss...

[bonoedge]

Bro,the a/m incidents might indeed be scams for the retailers to get more out of their sales.

But dont forget that these retailers hav to 'cover back' the GST they
themselves hav to pay to the dealers when they stock in the phones.

so it might boil down to:

$335(assumed cost of phone bf GST)+$30(profit for the retailer) x 5%(GST)=$384

so if this is the case the retailer is having a marginal profit of juz $30.if they had
absorbed the 5% from the amt of $365,they would hav make a loss...

[pterchew]

upz to share...

[guruking]

Frankly speaking, you really think the turnover for those ah-beng handphone shop is $1m...only shops with turnover of $1m are required to pay GST.

They are using the GST excuse to earn extra profit....

[easyeasy]

not only them I had encounter cook food store in coffe shop charging me GST. the receipt they give me is just a blank piece of white paper written in incorrect chinese character what i order and the total amount. KNN CCB to them

[K123456]

what's this got to do with discussion about sex???

[newyorker88]

Originally Posted by K123456

what's this got to do with discussion about sex???

I wonder what if some day the GOV decided to charge a GST for "special services"?

Since GST means "Goods and Services Tax", sexual services are services also wat

That will mean that AV cannot raid Tui Na and HC liao. Because they pay TAX!

Just a joke.

Good DAy

[ol'ManPushCart]

Bro pterchew,

U sound like someone trained in the aspects of taxation, are you an accountant? Anyway i can confirm the complaint letters to the gahmen must have lost its way or somewhere in transit. Afterall the people in the Incredibly Rich Arses of Singapore are all inefficient. Or your letter wasn't sent to the Comptroller of GST.

[sammyboyfor]

Every post in this thread has been docked 7 points.

The correct place to discuss these sorts of issues is at the Alfresco Coffee Shop.

http://forums.delphiforums.com/sammyboymod/messages

[cereal-killer]

Originally Posted by K123456

what's this got to do with discussion about sex???

cos' one day your nearby tuina shop will be doing the same thing.

[easyeasy]

Originally Posted by sammyboyfor

Every post in this thread has been docked 7 points.

The correct place to discuss these sorts of issues is at the Alfresco Coffee Shop.

http://forums.delphiforums.com/sammyboymod/messages

Arrrr, my points my points, give me back my points, SOB SOB