LAMC Productions will have to pay more than $250,000 in penalties – three times the taxes due the government – as well as a fine of $25,000.
According to the Straits Times, event promoters must withhold taxes on fees paid to non-resident performers and then later forward this money to the Comptroller of Income Tax.
The tax is levied at 15 percent of the performance fee, but LAMC underreported the taxes it owed the government. It’s not clear if the underreporting was deliberate or a mistake.
Straits Times reports that the Inland Revenue Authority of Singapore advised LAMC directors James Knudson and Lauretta Alabons on how to calculate the tax to be withheld before they informed the Authority of the amount and paid the tax.