How did forged invoices facilitate the missing trader fraud?

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Forged Invoices Were Central to the Missing Trader Fraud Scheme

Forged invoices were a critical component of the missing trader fraud (MTF) scheme orchestrated by Luke Giam Zi Hin and his syndicate. This intricate fraud relied on creating a false impression of legitimate transactions to claim fraudulent Goods and Services Tax (GST) refunds from the Inland Revenue Authority of Singapore (IRAS). The scheme involved using at least 12 local suppliers’ forged invoices to simulate genuine purchases, thereby establishing a basis for claiming input tax credits.
Simulation of Legitimate Purchases

The core of the fraud involved Nagore Trading, a company registered for GST. Prosecutors stated that forged invoices from a minimum of 12 local suppliers were used to create the appearance that Nagore Trading had engaged in legitimate purchases. These suppliers later informed investigators that they had never supplied the goods listed on these fabricated documents, highlighting the falsified nature of these initial transactions.
Creation of a False Tax Trail

The fake invoices served a dual purpose: they not only misrepresented purchases but also falsely indicated that Nagore Trading had paid the accompanying 7% GST on these supposed acquisitions. This created a fabricated tax trail, suggesting that the company was entitled to reclaim input tax. Following this, Nagore Trading would then "sell" these same goods to intermediary buffer companies, such as xShine Enterprise, through another layer of falsified invoices.
Enabling Fraudulent Sales and Refunds

Giam instructed Marcus Tan Boon Leong, the director of xShine Enterprise, to endorse Nagore's forged invoices and generate at least 127 fraudulent sales invoices. These documents amounted to over S$46 million and were intended for exporters. The ultimate aim was for exporters to ship non-existent goods overseas, thereby allowing the syndicate to submit fraudulent GST refund claims to IRAS, leveraging the seemingly legitimate, albeit fabricated, transaction history.

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How did forged invoices facilitate the missing trader fraud?

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