Businessmen Fined Over $2.4 Million for Liquor Tax Evasion

 

On March 19, 2025, the State Courts convicted two Singaporean men, Jake Lam, 59, and Teo Ee Meng, 50, for their involvement in a fraudulent scheme to evade duties on liquor. The duo was found guilty of illegally diverting 15,820 bottles of liquor meant for export into the local market, resulting in duty evasion amounting to approximately $249,863.

Lam, the director of Kingsman Wine & Spirits Pte Ltd and T.W.I. Wine & Spirits Pte Ltd, was identified as the mastermind of the scheme. He was sentenced to a fine of $1,350,000. Teo, who worked as the warehouse manager for both companies, was fined $1,050,000.

How the Fraud Was Carried Out

The scheme involved the deliberate misdeclaration of liquor shipments. Instead of exporting the declared goods, Lam and Teo retained a portion of the liquor at their warehouse, replacing them with beer—an alcoholic product subject to lower duties—before shipping the containers. The retained liquor was then moved from TWI’s warehouse to Kingsman’s premises for local sale, bypassing customs control and avoiding the required duties and GST payments.

To facilitate the fraud, Lam instructed Teo to oversee the stock manipulation. Teo ensured that certain liquor bottles were withheld from export shipments and later transported to Kingsman’s premises. A 60-year-old permit declarant, employed at TWI and Kingsman, was then instructed to falsify export permits to cover up the discrepancies. Court proceedings against this individual are still ongoing.

How They Got Caught

Customs officers discovered irregularities during an inspection in August 2021. Two containers carrying liquor were found to contain goods that did not match their declared contents. A subsequent raid on TWI’s licensed warehouse led to the discovery of the missing liquor, which was supposed to have been exported. Further investigations revealed that liquor previously marked for export had been retained at Kingsman’s premises for local sale.

Lam and Teo admitted to their involvement in the fraudulent activities, leading to multiple charges against them. Both pleaded guilty to three charges of fraudulent evasion of duties. An additional nine charges of duty evasion, 12 charges of GST evasion, and two counts of illegal removal of goods from customs control were taken into consideration during sentencing.

Penalties and Legal Implications

Singapore’s customs laws impose strict penalties on individuals involved in tax evasion and illegal removal of goods from customs control. Offenders can face fines of up to 20 times the amount evaded and/or imprisonment of up to two years.

Members of the public with information on smuggling or tax evasion are encouraged to report such activities to Singapore Customs via their official reporting portal.