$6.8m in penalties and taxes imposed on nightclubs that charge for flower garlands
The Inland Revenue Authority of Singapore (IRAS) has collected over $6.8 million in taxes and penalties from nightclubs that failed to properly declare income from flower garland sales. Authorities clarified that these sales are fully taxable, regardless of how the revenue is split between the club and performers.
Why it matters
The enforcement action highlights the government's commitment to tax compliance in the nightlife industry and the prevention of creative accounting practices.
IRAS said flower garland sales are taxable supplies, and that goods and services tax applies to the full value of garland sales, not just the portion retained by the nightclub.
Listen SINGAPORE – The Inland Revenue Authority of Singapore (IRAS) has imposed over $6.8 million in taxes and penalties on errant nightclubs for improper tax declarations of flower garland sales.
The authority told The Straits Times that it has taken action against eight such nightclubs since 2021.
IRAS had on July 3 published an article about the tax declarations for flower garland sales at nightclubs, as part of their efforts to help businesses understand their tax obligation.
These garlands are bought by customers and presented to performers at the club as a show of appreciation.
The performer usually receives a percentage of the amount received for each garland.
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