Local concert promoters made the news recently – no, not because they are bringing in the most expensive live acts to Singapore, but because of Tax evasion reasons (LAMC Productions), or selling tickets for a music festival when the permit has not been issued for the event (Future Music Festival)! IRAS and The Straits Times with the full news reports replicated below.
LAMC Productions Pte Ltd (“LAMC”), a local promoter for concerts and entertainment-related events, was ordered by the Court to pay a penalty of $256,212 for failing to declare and pay tax of $85,404, which the company had withheld from the fees paid to non-resident public entertainers.
The penalty is three times the tax amount. LAMC was also fined $25,000 by the Court. This is the first case where a company was prosecuted and convicted for such an offence.
LAMC Productions Withheld Tax But Failed to Declare and Pay IRAS
IRAS’ investigation revealed that LAMC engaged internationally renowned artistes such as Stereophonics, Pussycat Dolls, Lady Gaga, Keanne and Dionne Warwick to perform in Singapore in 2008 and 2009. After making payments to the non-resident public entertainers’ management companies and withholding tax of $85,404 on these payments, LAMC failed to declare and pay the withholding tax to IRAS.
IRAS Warns Against Tax Evasion
IRAS takes a serious view of non-compliance and tax evasion. There will be severe penalties for those who wilfully evade tax. Penalties for tax evasion can be up to four times the amount of tax evaded. Jail terms may also be imposed.
Disclosure of Past Mistakes or Reporting of Malpractices
Businesses or individuals are encouraged to disclose any past tax mistakes. IRAS will treat such disclosures as mitigating factors when considering action to be taken. Those who wish to disclose their past mistakes, reveal tax evaded, or report malpractices that might indicate tax evasion may write to:
Inland Revenue Authority of Singapore
Investigation & Forensics Division
55 Newton Road, Revenue House
A dance music festival which made headlines last year when six people died from drug overdose in Kuala Lumpur has been denied a licence for the show to be staged here next weekend.
The organiser of Future Music Festival Asia 2015 told The Straits Times that its application for a licence has been rejected by the police twice and it is appealing the decision.
About 15,000 tickets have been sold for the show slated to be held in Singapore for the first time on March 13 and 14 at Changi Exhibition Centre. The line-up of stars include Fatboy Slim and The Prodigy and hip-hop legends Public Enemy.
According to organiser Mr Iqbal Ameer, group chief executive of The Livescape Group, the first application was rejected on Jan 29.
At a subsequent meeting with the police, he was given a letter which stated that the application was rejected because of serious concerns over the drug abuse that happened at the Kuala Lumpur festival last March.
The organiser re-submitted its application to the Police Licensing & Regulatory Department on Feb 16 and was rejected again on Feb 27.
According to Mr Iqbal, the second application addressed the drug abuse concerns by saying that security personnel will conduct random drug tests and that the number of medical staff members at the festival will be boosted.
The organiser appealed to the Ministry of Home Affairs on March 2.
Mr Iqbal said: “All is not lost, it’s still under review. One of the main reasons why the Future Music Festival came to Singapore in the first place is because of Singapore’s no-tolerance stance on drugs.”