Singapore: PEACE of mind comes with a S$7,000-a-year (RM15,900) price tag for coffeeshop owner Oh Tien Fatt – that’s what he pays a number cruncher to keep his taxes straight.

Those hefty accountant’s fees really hurt last year as his barbecue seafood business ended up S$10,000 (RM22,700) in the red, but Oh still felt it was better to get the numbers in order for the taxman.

Every week, Oh’s accountant visits his Chong Pang shop to collect a pile of receipts detailing his expenses and income.

“I have had little education and do not know my maths well. How can I possibly handle such a huge amount of money myself?” said Oh, 58.

He is right to play it safe – 12 hawkers and companies running food stalls have already been hauled up for trying to cheat the taxman by under-declaring earnings, a temptation given the cash nature of the food trade.

One hawker made S$4mil (RM9mil) in six years but declared only half of that.

The man in his 50s has since paid the Inland Revenue Authority of Singapore more than S$1mil (RM2.3mil) in unpaid tax and penalties.

The Sunday Times approached 50 hawkers yesterday – 30 brushed them off for intruding into their privacy, but 20 were willing to talk about how they file their taxes.

Four hired professionals to do the sums for them. Kenneth Lee, 45, who co-owns a coffeeshop in Toa Payoh, said: “Because we hired an accountant, we have not faced any problem.”

His peace of mind costs S$800 (RM1,800) a year while Yee Loon Teck, who sells fish porridge at Chomp Chomp in Serangoon Gardens, pays S$250 (RM570) a year for his.

“I’ve never evaded. I’m scared of getting fined,” said Yee.

The cash they fork out is money well spent given the penalties for tax dodging. Those caught can be made to pay three times the tax evaded, jailed up to three years and fined up to S$10,000.

But most hawkers still go it alone, filling in forms by hand with guesstimates of income and expenses before mailing them in. – The Straits Times / Asia News Network